20 years in the Melton Mowbray Property Market has seen a lot of changes for Landlords and Tenants.

It feels to me like we are going through a period of re-adjustment. The landlords who invested when we carried out our first buy to let seminars in 1998 were lucky enough to buy at a time when you could easily achieve a 10% return on your investment. Some of those landlords are the very ones who are selling their rentals now to release the equity for the next chapter in life.  

A buy to let investment has a job to do - It may be part of a pension plan or to provide for children as they leave home. The aim of many of our landlords was for the rent to pay off the borrowing required to purchase the property in the first place. Fast forward 15 - 20 years and they are in the position of having an income giving asset to utilise to supplement a pension or to sell and release funds.

Any property owner looking to sell should get the right advice when it comes to tax planning. Selling property can create a tax liability for the owner and effectively managing a property portfolio along with other investments can help you to reduce the levels of Tax you could pay.

But what does these landlords selling mean for the Melton Mowbray property market?

There are still many people looking to invest in property.  The returns may not be what we saw back in 1998 but Melton Mowbray property has proven to be resilient to recession; our tenants are predominantly families, so there will always be demand for good quality rental property. In my opinion in the long term the demand from tenants will continue to outstrip supply of property and we will continue to see rents rise improving the returns for investors.

If you purchase a property to let you must do your research - invest in the right property to minimise void periods and put money aside to keep the property in good order and well maintained.

Consider your exit strategy and any future tax implications. Are you purchasing the property as Joint Tenants or Tenants in Common with specified percentage shares as this will greatly impact the inheritance position. From today until 2020 there will be key buy to let changes that will affect thousands of landlords across the UK and potentially reduce net income.

If you get the right advice then you can maximise the returns from a property portfolio. Please give me a call if you would like to discuss property investment or seek advice about tax liabilities.

Charlotte Baker 01664 569700

Asfordby Hill - Great investment £139,950

This is a spacious 2 bed property for sale with Mike Ford for £139,950 on Asfordby Hill. This area is popular with tenants as it allows easy access for those commuting to Nottingham and Leicester and is 5 minutes drive from Melton Mowbray with a short walk to a Primary School.

This looks like it needs very little doing to it to be ready to let and we would expect to get £595 pcm if it went on the market to let this week...


https://www.rightmove.co.uk/property-for-sale/property-75347528.html



    

Benefits of a bungalow as an investment in Melton Mowbray Country Park

This 2 bed bungalow has been on the market with Shoulers since April and is listed for £189,950. 

A bungalow can make a great investment, they rarely come onto the rental market to let are in high demand. This would achieve £650 pcm easily, especially as it is on the Country Park Estate.

https://www.rightmove.co.uk/property-for-sale/property-64809925.html

  

How have Melton Mowbray rents performed over the last 10 years?

The last few years have really felt like the rents have started to increase in Melton Mowbray and the surrounding villages. But what does the data show?  We have analysed our data for rental values across the whole of the East Midlands over the last 10 years.

When the recession hit in 2007 we started tracking the data across the region to pull together the rental figure analysis.  We caught it just in time to see the effect of the recession on the private rental sector in our area.

Many offices saw relatively flat rents during the recession. The figures show how the effect of the recession on the rents was not reversed until 2015 when we started to see rental levels higher than 2007.

The initial slump in rents when the recession first kicked in can be attributed to the increase in rental stock on the market as property owners were unable to sell property as easily.  Although we saw a quick increase in numbers of rentals on the market there were also a lot of tenants looking to rent as there were less mortgages on offer and a much steeper borrowing criteria.

As well as property supply affecting rental values, wages also have a large impact on what rent a property can achieve.  We believe that wages are the biggest driver of rent increases.

Unlike house prices, which can carry on rising irrespective of what is happening to wages, rents appear to flat-line when wages rise at less than inflation. We don't tend to see rents rise until wages are increasing at a faster rate than inflation. This means that in areas where there is a shortage of supply versus demand, we see rents rise for a few quarters, then they tend to flat-line again, even if demand remains higher than supply as tenants simply cannot keep paying more rent than their earnings.

This is also likely to be partly linked to tenant referencing / insurance companies requiring 2.5 - 3 times salary to pass affordability tests.

In Melton Mowbray, after the start of the recession we saw more properties come onto the market to let as property owners could not sell but the demand remained high.  This did mean rents dipped slightly then flat lined until 2014 and did not see a growth back to pre 2007 levels until 2015.

We are now seeing higher rents achieved each time a property is coming back onto the market to be re-let.  For example in 2014 a 3 bed semi detached property in good order with a garage would achieve around £595 pcm and in today's market we would expect to easily achieve £695 pcm - a 16% increase.

In the future I believe rents will continue to rise as the supply of rental property in the private rented sector is outstripped by demand from tenants and this should improve the yields available for investors.

If you have a property let out and you would like to discuss the rental value or are considering an investment property please feel free to give me a call or pop into our office on Burton Street. 

Charlotte Baker 01664 569700

Great 2 bed on Lake Terrace £150,000 4.7% potential yield

This great 2 bed is being marketed by Richard Watkinson for £149,950. These properties easily let for £595 pcm and this one looks in great condition...


http://www.rightmove.co.uk/property-for-sale/property-53866155.html


 

Asfordby Property going to Auction with a Tenant in Situ

A 2 bed in Asfordby has come onto the market for auction. 

This property is achieving a rent of £550 pcm - the guide price on the auction is £120,000, that's a 5.5% yield if it goes for that. 

We are aware the tenants are long term tenants so this could be worth having a look...


http://www.rightmove.co.uk/property-for-sale/property-73570310.html

4 Bed Ideal Long Term Investment Property In Melton Mowbray

This 4 bed property is being advertised for £200,000 with Harrison Murray. It is the sort of property that would let really quickly to a long term tenant and would provide a return in the region of 4.5% yield. This might not be as good as some other properties but you would see minimal void periods and have little hassle with a property like this one.

This is a really good investment for someone looking to attract a long term tenant as it will suit a small family and there are few properties like this on the rental market - affordable 4 beds.

Definitely one to consider!

http://www.rightmove.co.uk/property-for-sale/property-73289363.html

  

5% Potential Rental Return - Waltham Rise

Fantastic family property for sale on Waltham Rise just off Baldocks Lane and is being marketed by Melton Premier for £169,500. 
You would be looking at 4.7% - 5% return on the investment and long term tenants so it might be the type of property an investor looking for a pension income may want to consider. 
The interior looks to be in great condition too so not a lot of work required to get it let!

http://www.rightmove.co.uk/property-for-sale/property-71081660.html

    

Asfordby Valley - 2 bed semi detached would achieve £600 pcm

This 2 bed semi-detached property is being marketed by Middletons for £149,950. It is in Asfordby Valley, has a nice garden and a modern dining kitchen. It wold easily achieve £600 pcm on the rental market and I think would appeal to tenants looking for a long term rental property.

http://www.rightmove.co.uk/property-for-sale/property-64658122.html

 

Rosebery Avenue - 3 investment properties on the market...

It looks like there is landlord selling a chunk of a portfolio on Rosebery Avenue near the centre of Melton Mowbray. There are three terraces being marketed by Newton Fallowell - all in the region of £125,000 with tenants currently paying £535 pcm. 

These properties always let well if they are well maintained and give a potential return of over 5% from day 1.

http://www.rightmove.co.uk/property-for-sale/property-64731055.html

6% Potential Return for £90k investment in Melton Mowbray

We love a smart 1 bed quarter house - this would let for £450 pcm straight away! This is listed for offers over £90,000 with Mike Ford and could give a 6% potential rental return...

http://www.rightmove.co.uk/property-for-sale/property-71963228.html

    

Energy Efficiency Regulations for Landlords Effective 1st April 2018

From the 1^st of April 2018 all properties rented out in the private rented sector must have an EPC rating of E or above. This applies to all tenancy renewals and new tenancies after the 1^st April.

It will become unlawful to let out a property with an F or a G rating unless there is an applicable exemption.

Landlords doing so can face a civil penalty of up to £4000. Demonstrating that a tenancy has been correctly set up is required when looking to carry out an eviction so it is crucial that landlords are aware of the regulations.

The government have also announced that from the 1^st April 2020 every let property with an EPC rating of F or G will be required to improve the energy efficiency of the property. It really is time to plan improvements if your property falls into the F and G bands.

There are exemptions that can be applied for, if the property is listed or in a conservation area for example, where the work would not meet planning guidelines. The local planning office will advise on this and I am sure there will be a cost to applying for the exemptions.

It is a good idea for landlords to be prepared and plan for any improvements prior to their property coming up for re let. Many properties have EPC’s dating back to when they were first required and are due to be re done as they have now reached to 10 year mark.

The first thing to do is to get an upto date EPC done as the way in which these are assessed has changed over the years and it may be that the rating on the property has changed. Before this is done it is advisable to take some cost effective measures to improve the properties chance to get above the F. Sometimes simple things like energy efficient light bulbs can make all the difference.

Some local authorities also offer grants to help landlords improve the properties and there are schemes out there to help with insulation.

We are talking to all our landlords that this may affect and should you wish to discuss anything related to your rental property please feel free to give me a call.

Charlotte Baker Belvoir Melton Mowbray 01664 569700

3 Bed Potential Investment property in Melton Mowbray

This 3 bed on Edendale Road is listed with House Simple for £170,000. These 3 beds easily let for £650 pcm, they have large bedrooms and a dining kitchen so suit the family renters. 

This property looks like it could be a quick turn around for the rental market - an easy 4.5% return if purchased for the asking price...

http://www.rightmove.co.uk/property-for-sale/property-72059060.html

  

What will the Property Market look like for Landlords and Tenants in Melton Mowbray in 2018

With the news still being full of discussion about Brexit you would be forgiven for thinking it was the only thing the UK population were interested in! Talking to people in Melton Mowbray there is a lot of concern about the local housing market.

The summer of 2018 should see the Melton Local Plan adopted. This is Melton Borough Council’s housing and infrastructure plan for the town and local villages over the next 20 years.

In the pipeline are housing developments on Nottingham Road, Ankle Hill, Leicester Road and Spinney Road along with smaller sites in many of the villages.

After a lengthy period of few major housing developments in the area local people can now breathe a sigh of relief. Anyone looking to move house will be aware of the shortage of property on the market for sale and this has pushed many people to rent to accommodate their growing family.

The numbers of properties to rent are low too, as anyone searching for a good quality rental property will be well aware. To secure a property they need to make a decision within minutes of viewing before it is snapped up by the next potential tenants looking. If tenancies are lasting longer then surely tenants should be able to be more selective.

The additional properties coming onto the market should hopefully balance things out a little. More properties for sale and to let will inevitably give people more choice and encourage more activity in the housing market. We need more first time buyers to help those further up the chains move on but also investors so those looking to rent have choice and can find suitable property.

We need some balance in the housing market and I think the new developments will help to provide this. We are looking forward to 2018 being the start of the growth of the town that will allow more people to find their home and enjoy living in and around Melton Mowbray.  Melton Mowbray offers good employment opportunities and schools and it will be great for those coming into or back to the area to have more housing options.

If you are considering investing in a buy to let property follow this blog or give me a call on 01664 569700 to discuss potential investment properties and rental returns.

Long Clawson 2 bed property 4.8% potential return

Rural properties are in high demand from tenants as they do not come onto the market very often.

This 2 bed ground floor apartment is being marketed by Mike Ford for £147,500 and would let for £595 pcm. Its the type of property that would see minimal void periods and as it is in good condition internally should let really quickly. 

http://www.rightmove.co.uk/property-for-sale/property-71125520.html



    

Potential Investment Opportunity - Currently Tenanted

We have a landlord looking to sell a property on Fleming Drive, Melton Mowbray.

The current tenants have been living in the property since February 2016 paying £550 pcm rent. If this came up for re let it would currently achieve £595 pcm.

The landlord is looking to sell the property for £150,000 and this is your opportunity to consider this investment property before it is listed with an estate agent.

You could be getting a yield of 4.7% from day one and improve that return in the future.

This is a 2 bed Barratts property built around 2009 with an enclosed rear garden. These properties are on the development at the top of Doctors Lane and are very popular with tenants. If you would like to arrange a viewing or express an interest please let me know.

Charlotte Baker Belvoir Lettings 01664 569700

Buy to Let investment that will appeal to Families in Melton Mowbray

This 3 bed extended semi is on the market with Anthony Hancock. It is located on a popular estate to the south of Melton Mowbray and has been extended to create a good size kitchen. 

As it has a garage it would easily let for £675 pcm and with an asking price of £185,000 it could make a good investment. Its certainly the type of property to let quickly and have minimal void periods...

http://www.rightmove.co.uk/property-for-sale/property-70480955.html

House Prices Rise the Fastest in the East Midlands - but what about Melton Mowbray?

Recently the BBC reported that the property prices in the region rose by 7% in the year to October - the largest rise in the UK  - according to the Office for National Statistics (ONS).

http://www.bbc.co.uk/news/business-42322596

Delving deeper into the report and targeting the Melton Local Authority house prices have seen an annual 6.07% increase in value from October 2016. Melton has seen a healthy increase in house price values through out the year peaking at 11 % for January 2017 vs January 2016.

Statistics are useful but a more detailed calculation of the value of a property you have invested in can be predicted by using the stats on sold prices Rightmove put together. You can look at the value property achieved on the same street or estate. 

it is important to ensure that your investment is working well for you, rents are increasing - is your investment property achieving the best return it can? 

If you would like to discuss the Melton Mowbray property market give me a call 01664 569700. Charlotte Baker

Portfolio Landlords Facing Mortgage Difficulties

Buy to let investors with 4 or more properties in their portfolio are starting to feel the impact of the change in regulations for lending that came into force in September this year.  I was speaking to Tom James at Thomas Nicholas Financial Services, based in Melton Mowbray, to find out what impact this has had for local investors.

He explained that previously lenders assessed a buy-to-let mortgage applications based on the rental income and property value of the property they are lending against. From 30 September 2017, any landlord who owns four or more mortgaged buy-to-let properties will have to submit income and mortgage details on all of them every time they re-finance one, or purchase a new property.

This has hit investors looking to purchase another property for their portfolio or looking to re-finance their properties. The criteria has become much stricter than we have seen in the past so lenders are refusing to remortgage a property that previously fit their criteria.

This is resulting in some landlords increasing the equity they have in a property, considering selling their investment property and in some cases deciding not to invest in additional properties. This is not good news for tenants, who in Melton Mowbray are seeing rents continue to rise as the stock of available rental property does not satisfy the high demand in the area. 

You can do something to minimise the impact of these changes.

It’s vital that a landlord with a portfolio of properties regularly assess the rental levels to ensure they keep up with the current market rates.  Inspect the condition of your properties, it is vital they are being kept in a good condition to ensure you receive the maximum return on your investment and to minimise void periods.

If you would like to review your current portfolio performance please contact me to arrange a no obligation meeting to assess the current rent and property conditions.

You should also contact Tom and look at the lending you have in place to ensure you are fully aware of what you should expect when you need to renegotiate your borrowing.

Charlotte Baker - Belvoir Lettings Melton Mowbray 01664 569700

Tom James - Whole of market, free of charge mortgage advice: 0330 1200324

6.5% return on a £60K investment in Melton Mowbray!

These little studio apartments regularly let for £325 pcm and at a £60,000 investment it is in reach for first time investors or someone looking to add to their portfolio. 

This one looks to be in good order so could be let quickly... 

http://www.rightmove.co.uk/property-for-sale/property-51653187.html