Thursday, January 29, 2015

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  I know what sort of properties match whatever you want from your property investment and I can give you my  honest unbiased opinion

Monday, January 26, 2015

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..

Living roomFront

Thursday, January 22, 2015

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!

Monday, January 12, 2015

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...

Monday, January 5, 2015

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