What properties are actually selling in Melton?

Prices up, prices down, prices stable .. the newspapers are full of good news, bad news and indifferent news about the UK’s favourite subject after the weather .. the property market!

The thing is the UK does not have one housing market.  Instead, it is a patchwork of mini property markets all performing in a different way.   At one end of scale is London, which has seen average prices grow in the last twelve months by just under 19% (again that is an average because some Borough’s in London have risen by 26%) whilst Wales only saw a 2% increase in property values (The Merthyr Valleys dropped by over 11%).

Well we can’t ignore the rest of the UK, and we can’t forget that the Chancellor’s Stamp Duty reforms have polarised the London property markets above £1,000,000, because at the top end of the market, punitive Stamp Duty charges will dampen demand further.  

While the Bank of England warned of the growing London property price bubble in the Spring of 2014, even talk of a recovery in some areas was premature.  In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets –  really slow property value growth.

But what about Melton?   Well, we haven’t had the December figures from the Land Registry yet but the last few months’ activity and prices achieved would suggest neither house price growth nor drops.  In fact, most sellers are buyers anyway, so if you need to take less for yours, you won’t have to pay as much for the one you want to buy ...  this is good news for everyone as most move up market when they move.  This is even better for landlord investors, as they can bag a bargain as well!

The question you should be asking though is not only is what happening to property prices, but which price band exactly is selling?    I like to keep an eye on the property market in Melton on a daily basis because it enables me to give the best advice and opinion on what (or what not) to buy in Melton. 

If you look at Melton and split the property market into four equally sized (into terms of households) price bands.  Each price band would have around 25% of the property in Melton, from the lowest in value (the bottom 25%) all the way through to the highest 25% (in terms of value). 

Over the last two months (63 days to be precise), in the lowest quartile, (those with asking prices under £130) 43 properties have come onto the market in Melton and 16.2% of them (7 properties have a buyer and sold stc).  The next quartile, £130k to £170k, 50 properties came on to the market, 32% of them (16 properties) have a buyer.  The £170k to £250k price range has seen 37 properties come on to the market, 21.6% of the properties have a buyer (8 properties).  The most expensive 25%, the £250k plus range, has seen 2 of the 23 properties that came on to the market find buyers (8.6 %). 

Fascinating don’t you think?

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any house price growth or drops this side of the election. Election or no election, people will always need a roof over their head and that is why the property market has ridden the storms of the Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008.  Why?  Because of Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash. ... there is always a silver lining when it comes to the property market! 

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first time, please pop in and see me at our office in Burton Street, Melton Mowbray or call me on 01664 569700.

Bargain on Belvoir street

This could be a great little investment for someone looking to add value to a property. It is a terrace which looks to have had some refurbishment but would benefit from a new kitchen. 

With this completed it could achieve a rent of £525 pcm easily, providing a return of over 6%.

click on the link for more details from Melton Premier...

http://www.rightmove.co.uk/property-for-sale/property-50834621.html

Apathy in the Melton Property market

Apathy has hit the Melton housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand.  

This is mirrored around the UK as Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier.

Looking at Melton, in the Autumn of 2014, each estate agent in Melton had on average 22.8 properties on its books (as there were a total of 251 properties up for sale in Melton at the peak during that time.  Our research shows that numbers plummeted to 19.1 per agent in December.  While the lack of new properties coming onto the market in the later months of 2014 in Melton pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.

The length of time a property takes to sell has increased over the last few months. Two bedroom properties in Melton are now taking 77 days to sell, three bedroom 122 days, four bedrooms 131  days, but here an interesting figure, one beds are taking on average 44 days to find a buyer 2015 will be the year of the selective mover.  With only 187 brand new properties a year being built in Melton since the turn of the Millennium, this woefully low and insufficient number of new buildings in the Town over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.

I would confirm the heat has gone out of the Melton property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014.  That might mean Melton landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy or the election, if people don’t buy property they rent.  The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar!

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment come and see me at our office on Burton Street, Melton Mowbray or call me on 01664 569700.

Fernie Avenue - Lovely terrace with a garden

This fab Victorian terrace property has a lovely garden is located on a quiet street with permit parking for residents. It is up for sale with Connells at £125,000 and should give a buy to let investor a comfortable 5.5% return.

It is in good condition internally and has retained some original features, click on the link for more pictures..

http://www.rightmove.co.uk/property-for-sale/property-50846522.html

A Melton man’s home ..is his semi .. or terraced ... or bungalow!

Ok, a slight turn of phrase there on the classic, an Englishman’s home is his castle but when it comes to the UK  the Brit’s are still a nation of homeowners.

 It is interesting to note that up until the mid to late 1960’s, more people rented their home (albeit mostly from the local council) than owned their own. In fact, I was surprised to read that in 1921, over 75 % of homes in England and Wales were privately rented with the remaining 25 % being owner occupied. 

It was only after the Second World War, when the Beatles were rocking, that people started to buy instead of rent .. but instead of owning our property outright, we borrowed money from banks and building society’s to buy them.   The roots of the growth of the private rental sector can be drawn back to the late 1970’s early 1980’s, when the council houses began to be sold off under the right to buy scheme.   Even though 15,010 households in Melton were owner occupied,  in 2001 and that number had increased to 15,498 households by 2011, the percentage of homeowner properties in Melton dropped drastically from 76.5 % to 72.1 %.   This was because whilst an additional 1,875 properties were built in Melton between 2001 and  2011, a lot of them were bought as buy to let investments, thus more than doubling the number of private rental properties in Melton.   In fact, the number of properties in Melton, that were privately rented jumped from 1,567 in 2001 to 3,054 in 2011!

With stagnation in the number of people who own their home in Melton and no more council houses being built, this is increasing the number of people looking to renting.   With the Melton Borough Council house waiting lists being in the 5 to 10 year range for a decent property in a decent location, it shouldn't be forgotten that it is Melton landlords who house tenants waiting for a council house.   Melton landlords do not receive any subsidies from HMRC and income tax is paid on rent paid by the tenant combined these reduce the cost on the tax payer.

However,  it’s not all doom and gloom in Melton, as we have noticed more and more of the younger generation are renting because they can‘t afford to buy (raising a deposit being the sticking point for most), and a high percentage of the expansion in private renting actually from those who need and want temporary accommodation. There are even a few landlords who rent their own Melton property out for the short term, for ease, and not necessarily purely for profit.

Therefore, with every report stating the rental market will continue to grow throughout the rest of this decade, with high demand and limited supply in the Melton.   If you are considering buying a property for investment in the near future in Melton, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. If you are a landlord, new or old, I am certainly more than happy for you to pick up the phone - 01664 569700 

Delightfully refurbished end of terrace – Saxby Road

This deceptively spacious end of terrace has been thoughtfully renovated by the current owners, providing a ready-to-go investment property.  With 2 reception rooms, extended kitchen and a utility, it will appeal to families and professional couples alike, making the property very easy to let.

Being marketed at £125,000 by Harrison Murray, it could see returns of up to 6%.

Click here for full details, but hurry, this property will not be around for long:

http://www.rightmove.co.uk/property-for-sale/property-48166504.html

Melton Mowbray .. good time to buy property?

Following last week’s article, I had an interesting chat with a Farmer who lives in the Charnwood area, who popped into our office on Burton Street, whilst his better half was at the hair salon.  He is thinking of buying his first buy to let property and he wanted my opinion on the state of the market and if it was a good time to invest.

He was particularly worried that with all the newspaper headlines of a booming housing market, there wouldn’t be any demand from tenants. One of the best pieces of advice I can give to those looking to invest in property is a simple trick of the trade.  You can judge the affordability of an area’s property market (and thus how much demand there could be) by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.

When we put this to the test, as we talked about a few weeks ago, we found that Melton Mowbray currently has an average property value of around £224,500. The average salary of someone living in Melton Mowbray is £24,602. This is a ratio of 9.12 to 1.  Most lenders will only lend up to 4.5 times income, so to buy an average house in Melton Mowbray, a first time buyer would need to be on a joint salary of £49,800 and even then, would need to raise the 5% deposit, which when you take into account buying fees, will be in the order of £13,800.

Tenants’ inability to raise that sort of money for the deposit is driving demand for rental property. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first time, please pop in and see me at our office in Burton Street, Melton Mowbray or call me on 01664 569700.

Stunning Semi on Wymondham Way - Country Park Estate

This is a great property to let out - I really hope one of our investors purchases this! It is for sale with Connells and it would let really easily for £625 pcm and has scope to add value in the future by extending over the garage.

Its in a great spot for Schools and access to the country park, click on the link below for more pics...

http://www.rightmove.co.uk/property-for-sale/property-49597694.html

Dieppe Way Property market outperforms the Kirby Fields property market by 43%

I recently got chatting to a local landlord about his two buy to let properties in Melton Mowbray, one of which is a three bed town houses in Dieppe Way (also known as the Fairmead Estate) and the other is in Kirby Fields (a nice Jelson three bed semis just off the roundabout at the bottom of Edendale Road). We spoke about the two properties in both areas and he wanted some advice on where to buy the next one. I did a comparison between the two and was surprised to find that the property market in the Dieppe Way area had outperformed the Kirby Fields development market by 43%!

The average price of three bed town house on the Dieppe Way Estate is £89,400. When you consider the rents that are achieved in the Dieppe Way Estate are an average of £500 pm, this gives us a yield of 6.71% per year. So is the Dieppe Way Estate the best investment? Well, in the Kirby Fields area, where the average value of a three bed semi detached property is £163,100 and the average rent for such a property is £638 pm, giving a much lower yield of 4.69% per year. This makes the yield/ return in the Dieppe Way estate 43% proportionality more than property in the Kirby Fields area, so surely it is the best investment, isn’t it?

However, this is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much the value of the property goes up in the long term. In the last 16 years, property values have risen on average by 133.4% on Dieppe Way (rising from £38,300 to the £89,400 mentioned above), which is very impressive considering there was the 2008 property crash. However, average property values for property in the Kirby Fields area have risen on average by 180.7% in the same time frame.You should also consider how the area in which a property is located can affect the potential void periods which can really hamper the performance of a property investment.

So, if you are investing in the Melton Mowbray property market, do you want capital value or yield?  If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, please come and see me at our office on Burton Street, Melton Mowbray 

Terrace property on George Street

This great terrace property is for sale at £115,000. It is on George Street which provides on street parking but it is a quiet road. The terrace has lots of character and should let for £550 pcm giving a potential return of 5.7%.

It retains a lot of the character features that appeal to tenants but also has Gas CH, definitely worth a look...

http://www.rightmove.co.uk/property-for-sale/property-48248305.html

Ready to go investment property on Salisbury Avenue

This great 2 bed terrace has had all the refurbishments completed by the current owner. There is a new kitchen and Gas Central Heating system, the property also has new carpets throughout. 

It would easily let for £525 pcm and properties in this modern condition have very few void periods.

Click on the link for more pics ..

http://www.rightmove.co.uk/property-for-sale/property-49991510.html?premiumA=true

 

2 bed apartment in a converted mill just off Kings Road.

Harrison Murray have this great 2 bed apartment set over the top two floors in this converted Mill development. Close to Melton Mowbray town center it is very convenient for walking into town and comes with allocated parking.  

These apartments are really popular, currently letting at £525 pcm, if purchased at the asking price of a shade under £120,000 it would give a return of 5.25%.

Click on the link to see the floor plan..

http://www.rightmove.co.uk/property-for-sale/property-48204139.html

Property values rise by £375 per week in Melton Mowbray

Last week, a landlord who lives near Colston Bassett, came in to our office on Burton Street in Melton to discuss the rising property values in the towns on the outskirts of the Vale. He owns a varied portfolio of rental properties, primarily in Melton Mowbray and Bingham with one in Grantham, so it is interesting to compare the increase in property values around the area.

Over the last 12 months in Melton Mowbray average property values have risen from £205,000 to £224,500, a rise of £19,500 or £375 per week. When I looked at some of the surrounding areas, Bingham has had a slightly lower than average increase in property values, at around £284 per week (as the average property in Bingham has risen from £192,000 to £206,800), whilst Grantham has had a lower rise of around £182 per week.

When one looks at the percentages, Melton Mowbray has performed the best as well, rising by 9.5% in the last 12 months, compared to Bingham at 7.7% and  Grantham’s at 6.7%! It is, nonetheless, a rise in all the town’s average property values which suggests the market is increasing steadily in our area, but especially Melton Mowbray– good news for home owners and landlords alike. 

When considering this landlord’s buy to let portfolio, yields can be in the order of an average 4% to 7% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Melton Mowbray as property values start to rise.

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, please come to see me at our office on Burton Street  or email me at charlotte.baker@belvoirlettings.com or visit the Melton Property Blog.

Clover Drive - Family property

I was really pleased to see this lovely property come on the market for sale with Bentons. It will really suit an investor I am searching for currently. They have asked me to keep an eye out for a property that they can invest in and rent out but eventually live in themselves.

This detached house is on the market for £265,000, has 4 bedrooms and a modern interior. The location is great for any family and has an easily managed garden. 

There are very few properties like this available for tenants in Melton Mowbray but a high demand from families looking to settle in the area. For that reason it would easily let for at least £800 pcm.

Click on the link for the full details..
http://www.rightmove.co.uk/property-for-sale/property-48094771.html

Melton Property Market – What will happen in 2015?

Over the last 12 months, property values have risen, on average by 9.5% in Melton. Good news all round, but when you consider property values in the town have previously dropped by 16.44% between March 2008 and May 2009, this is not as good as the media would have you believe.  It should be no great surprise to hear that Melton property values are starting slow up as we head in to the New Year.  Property values in the town were growing at an impressive 1.3% in the Spring months of 2014, but in early Winter months, they slowed down considerably, rising by only 0.2% a month.

The reality is we have had 15 months (since the late 2013) of decent market conditions in Melton, but now all that pent up demand is starting to fade. The big question moving forward is whether the Melton market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the Melton property market. It is obvious to me and my fellow estate agents in Melton, that I talk to in the town, that we all are beginning to be wary about the direction of the market as a result of the not as strong demand and fewer house sales.

This is all good news for landlords looking to buy rental property because you could bag a bargain during this lull, especially with the changes in stamp duty and later in 2015, the new rules regarding pensions, where you will be able to take money out of your pension pot to invest in property. However, at the same time, I would say don’t just buy any old property in Melton. First time landlords need to be cautious. The doubling of house prices every seven to ten years which has taken place since WW2 doesn’t seem to have been seen since the mid 2000’s. The property market is shifting with more properties being built and restrictions put on mortgage lending, the likelihood of the property market increasing at the same levels as the past are questionable. But investing in property is also about receiving the rent.

So to answer the question, what will happen in 2015. Supply and demand become increasingly better balanced, so house price gains in Melton will continue to drift down towards zero over the next few months until the General Election, but I do not expect sustained house price falls in the town like we did in 2008 (as mentioned above) thanks to record low mortgage rates, rising wages and early signs that lenders are starting to increase the availability of mortgages.  If I had to stick my neck out on this, depending on the election result, property values will either be either 3% to 4% lower by the end of the year if we have a hung Parliament  (because of the uncertainty that brings) or a modest rise of 3% to 4% if the Conservatives get back into power.

On the one hand going for high yielding Melton property to rent out seems an obvious choice, but high yielding property often does not go up in value that well and in some circumstances does not keep up with inflation, meaning in real terms you have a depreciating asset . So surely you should pick a property that has great capital growth then, because of the obvious potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties tend to be low meaning if you are taking a high percentage mortgage, the rent does not pay the mortgage payments. Or you could look for a property with a bit of both? (yield and capital growth).

If you are unsure what to do, be you a first time landlord or a seasoned pro, feel free to pop your head round our door or email me on charlotte.baker@belvoirlettings.com  I know what sort of properties match whatever you want from your property investment and I can give you my  honest unbiased opinion

Tamar Road - Spacious Terrace

This three bed property has been on the market with Middletons since September 2014, I am surprised as we have let properties similar to this one for £575 pcm in the past and at the asking price of £129,950 this would give a 5.3% return.

It even has a garage which although it is in a block it backs onto the garden. Great location for anyone commuting to Leicester. Click on the link and let me know what you think..

http://www.rightmove.co.uk/property-for-sale/property-46361347.html

Valiant Way - how is this not SSTC??

We have let this recently to tenants at £550 pcm, as it is now for sale at £104,500 it give a return of 6.3%.

It is the top floor of the building and it has private access and no noisy neighbours above. As a modern property it should be low maintenance for a landlord and tenants find the modern fittings appealing.

Have as look at the link and arrange a viewing before it gets snapped up!

http://www.rightmove.co.uk/property-for-sale/property-49234277.html?premiumA=true

Asfordby Valley - Smart family home

Harrison Murray are offering this well presented property at offers over £140,000. If it went for that and was let at £595 pcm (which it easily would) the return would be in the region of 5.1%.

This is an established estate that should also see an increase in capital values over the next 5 years - now is the time to invest in this area.

Take a look at the easily maintained landscaped garden...

http://www.rightmove.co.uk/property-for-sale/property-47784778.html

A new build with space to live in Melton Mowbray

This cracking new build property would really appeal to tenants and would easily let for £625 pcm.

Its nice this builder has really thought about what is needed from a home and included a utility and off road parking as well as a garage. 

Click on the link for the floor plan

http://www.rightmove.co.uk/new-homes-for-sale/property-49661600.html?premiumA=true

3 Bed Terrace - Kings Road

Great investment!  Situated on a popular street close to a good primary school, this 3 bed terrace ticks all the boxes for an investment landlord.  Newly refurbished, with just a little work required on the garden, it is ready to let!

On the market for £124,950, it should achieve a rental income of £575 pcm, giving a yield of 5.5%.

http://www.rightmove.co.uk/property-for-sale/property-47414983.html