Friday, November 4, 2016
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.