This detached property is on the market with Bentons for a shade under £180,000. Its a detached Victorian Villa, 3 bedrooms with a great garden. It has some of the Victorian features that tenants love and an enclosed rear garden. It would let really well - even with out parking as it has nice large rooms and I think it would achieve £700 pcm - 4.6% potential return if purchased at the asking price. Have a look at the interior below to see why I think it would appeal to tenants... http://www.rightmove.co.uk/property-for-sale/property-53233997.html
Last Sunday it was announced UK inflation had increased to its highest
level in a year. Inflation, as calculated by the Government’s Consumer Prices
Index, rose by 0.3% over the last 12
months. The report said the rise was due
to smaller falls in supermarket and petrol prices than a year ago. If you recall,
in early 2015, we had deflation where prices were dropping!
So what does this
mean for the Melton Mowbray property market ... especially the tenants?
Back in November, the Office of National
Statistics stated average wages only rose by 1.8% year on year, so when
adjusted for inflation, Melton Mowbray people are 1.5% better off in ‘real’
terms. Great news for homeowners, as their
mortgage rates are at their lowest ever levels and their spending power is
increasing, but the news is not so good for tenants.
average rent that Melton Mowbray tenants have to pay for their Private Rental
Properties in Melton Mowbray (i.e. not
housing association or council tenants) rose by 2.4% throughout 2015,
eating into most of the growth. 2015
wasn’t a one off either. In 2014, rents
in Melton Mowbray rose by 1.3% (where salaries only rose by only 0.2%) However,
it’s not all bad news for Melton Mowbray tenants, because in 2013 rents rose by
1.0%, (but salaries rose by 2.2%).
… and it must
be noted that the private rents Melton Mowbray tenants have had to pay for Melton
Mowbray property since 2005 are only 15.0% higher, not even keeping up with
inflation, which over the same time frame, rose at 27.8% (although
salaries were only 22.3% higher over the same time period)
More and more,
talking to 20 and 30 somethings who
rent – it’s a choice. Gone are the days
where owning your own property was a guaranteed path to wealth, affluence and
We in the UK
stand at 64.8% homeownership, in Europe’s powerhouses, only 52.5% of Germans
own a home and only 44% of Swiss people are homeowners. Looks like eating chocolate, sauerkraut,
renting and good economic performance go hand in hand. Yet, joking aside, home ownership has not always
been the rule in the UK. In 1918, only 23% of people were homeowners,
with no council housing, meaning in fact, 77% were tenants.
Tenants have choice, flexibility to
move, they don’t have massive bills when the boiler blows up, it’s a choice. Melton Mowbray rents are growing, but not as
much as incomes. To buy or not to buy
is an enormously difficult decision. For while buying a Melton Mowbray home is a dream
for the majority of the 20 and 30 something’s of Melton Mowbray have, it might
not leave them better off in the long run and it isn’t necessarily the best
option for everyone. That is why, demand
for renting is only going in one direction – upwards.
This 3 bed semi is on the market with Newton Fallowell for £159,950 is in great condition and has a garage. It would easily let for £650 pcm (being conservative) and is in a popular area for tenants looking for a family property. It looks like there is very little to do here to get it ready to let. http://www.rightmove.co.uk/property-for-sale/property-53857861.html
This 3 bed semi on Old Bridewell - the desirable Country Park Estate - is on the market with Harrison Murray for £159,950. It needs updating inside but with the garage and the nice plot it could let for around £650 pcm. Definitely worth considering as capital growth levels are good on this estate. http://www.rightmove.co.uk/property-for-sale/property-58925186.html
This property on Richard Close, just off Saxby Road, is on the market for sale with Melton Premier for offers over £145,000. Its a lovely 2 bed which would let really easily, whilst the yield may not be as impressive as an ex-authority property it would have few voids and would require little maintenance.
commentators are saying buy to let is about to die, with the new stamp duty
changes and how mortgage tax relief will be calculated. Some say 500,000 rental properties will flood
the market nationally in the next 12 months as landlords leave the rental
market. Have you heard the phrase ‘Bad
news sells newspapers’? Let me explain
why buy to let in Melton Mowbray is only going in one direction – and not the
direction the papers say they are going.
According to Sheffield
University, buy to let landlords will continue fuelling the growth of the
private rented sector in the coming decades. By their estimates (and they are considered a
centre of excellence on the topic), the rate of homeownership nationally will
fall to 50% (today it is 72% in Melton Mowbray) by 2032, while the rate of
private sector renting will increase to 35% (interestingly, in Melton Mowbray
it stands at 13.2% today).
Therefore, the demand for rental accommodation in Melton Mowbray
will grow by 314 households in the next five years ... and these are the reasons
why, irrespective of the distractions set out in the newspapers.
property values over the last six years have risen a lot more than average
wages/salaries, meaning as homeownership and mortgage availability is dependent
on your ability to pay has served to push home ownership further out of reach
for many, at a time when the stock of council houses has actually withered. (Nationally,
the number of council houses in the last ten years has dropped from 3.16m to
2.18m households - a drop of 31.1%).
Now it’s true that the
Government’s efforts to fix the deficiency of affordable housing has focused on
those who want to buy a home, ranging from Help to Buy and Starter Home Schemes,
an initiative offering a 20% discount for first time buyers … but if you are
unable to save for the deposit ... none of this means anything to the ‘20 something’s’ of Melton Mowbray ...
and they still need a roof over their heads!
This prediction in growth of the Melton Mowbray
rental market is even on the back of the government clamping down on tax
reliefs for landlords. The point is
this, gone are the days of making guaranteed returns on BTL property. For the last 20 to 30 years, irrespective of
which property was bought, making decent money on buy to let property was like
shooting fish in a barrel – anyone could do it
- but not now. Landlord’s must
take a more considered approach to their existing and future portfolio,
especially in Melton Mowbray. The
balance of capital growth and yield, especially in this low interest rate world
we live in, means Melton Mowbray landlords need to do more homework to ensure
the investment in property gives the desired returns.
This nice 3 bed semi is on the market with Melton Premier at £154,950 and as it has a garage I am confidant it would let for at least £600 pcm. With nothing needed to be done in the property to get it ready to let this could see a 4.6% return if purchased for the asking price. http://www.rightmove.co.uk/property-for-sale/property-40330626.html
Mowbray’s continuing housing shortage is
putting the town’s (and the Country’s) repute as a nation of homeowners ‘under
threat’, as the number of houses being built continues to be woefully
inadequate in meeting the ever demanding needs of the growing population in the
town. It used to be that if you went out to work and did the right thing, you
would expect that relatively quickly over the course of your career you would
be buying a house, you would go on holiday every year, you would save for a pension. But
now things seem to have changed?
Back in the Autumn, George
Osborne, used the Autumn Statement to double the housing budget to £2bn a year from April 2018 in an
attempt to increase supply and deliver 100,000 new homes each year until
2020. The Chancellor also introduced a series of initiatives
to help get first time buyers on the housing ladder, including the contentious
Help to Buy Scheme and extending Right to Buy from not just Council tenants,
but to Housing Association tenants as well.
Now that does
all sound rather good, but the Country is only building 137,490 properties a
year (split down 114,250 built by private builders, 21,560 built by Housing
Associations and and a paltry 1,680 council houses). If you look at the graph (courtesy of ONS),
you will see nationally, the last time the country was building 230,000 houses
a year was in the 1960’s.
How George is
going to almost double house building overnight, I don’t know,
at the Melton Mowbray house building figures, in the local authority area as a
whole, only 70 properties were built in the last 12 months, all of them were
privately built properties with none built by housing associations and not one
council house being built. This
is simply not enough and the shortage of supply has meant Melton Mowbray
property values have continued to rise, meaning they are 2.0% higher than 12
months ago, rising 1.6% in the last month alone.
It’s all about supply and demand, this economics game. The demand
for Melton Mowbray property has been particularly strong for properties in the
good areas of the town and it is my considered opinion that it is likely to
continue this year, driven by growing demand among buyers (both Melton Mowbray
homebuyers and Melton Mowbray landlords alike). You see Melton Mowbray’s economy is quite varied, meaning activity
is expected to remain relatively strong into the early Summer of 2016..
.. and of
supply, well we have spoken about the lack of new building in the town holding
things back, but there is another issue relating to supply. Of the
existing properties already built, the concern is the number of properties on
the market and for sale. The number of properties for sale last month
in Melton Mowbray was 122, whilst 12 months ago, that figure was 168, whilst
three years ago it stood at 217… a massive drop!
With demand for Melton Mowbray property rising,
minimal new homes being built and less properties coming onto the market, that
can only mean one thing ... now is a good time to be a homeowner or landlord in