I have been reading lots of articles in the media about
uncertainty in 2017, if 2016 is anything to go by who knows what will happen!!
It got me thinking about the Melton Mowbray property market,
employment levels and the availability of credit?
We have to realise that the chronic shortage of housing will
keep prices buoyant even if lending does become more difficult.
We have seen lots of changes in Melton Mowbray since
1998. If there has ever been a problem
for people to borrow money or to secure a mortgage, it has always increased the
numbers of people looking to rent a property.
The increased demand, and shortage of rental available, only
results in rents increasing. Perhaps it
will become more viable for a landlord to invest if they can see the returns on
a rental property grow.
The government do seem keen to keep increasing the taxation
levels on landlords. Without people
investing in property there would be no Private Rented Sector to cater for
those who choose to and need to rent.
It’s often their only option or the best option for their current
circumstances.
I believe we will see those with some cash to invest still
buying property, especially if the yields become more favourable, as the
returns from savings are expected to remain low. The increasing yields would offset the
increasing taxation levels for landlords but it is not going to help the
tenants of Melton Mowbray – many who are just about managing at the moment.
If you are already a landlord and concerned about the effect
of a potential unsettled period there are things you can do to minimise your
exposure to risk. The main things are
ensuring your property is well maintained and regularly inspected. Make sure you have a comprehensive Buildings
insurance with reasonable excesses – you don’t want any nasty surprises from an
escape of water for example.
It seems very unlikely, but should employment levels in Melton
Mowbray ever be affected, Landlords could consider taking out a Rent
Guarantee. If a tenant becomes unable
to pay then the rental income will be protected and the costly eviction process
will also be covered. I do believe here
in Melton Mowbray we are well placed geographically for people to be able to
find work.
If you would like to discuss anything about the
Melton Mowbray Property Market please call me on 01664 569700
