What type of property in Burton sells the best?

Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why? Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to.

Bearing this in mind, last week, a couple from Repton popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell?

Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results. A good guide to the saleability of property is the number of properties for sale, compared to the number that are sold, subject to contract. Now I carried this comparison out a last week, so the numbers will be marginally different today, but in Burton, there are 853 properties on the market for sale. Of those, 577 are fully available on the open market waiting for a buyer and 315 have buyers and are sold subject to contract. That means 36.9% of property on the market has a buyer in Burton.

However, delve deeper, and in Burton today, 33% of terraced houses on the market have a buyer and, great news for semi owners, as 40% of them have buyers too. Bungalows are doing nearly as well, with 28 of the 72 on the market having buyers (making a 39%). The properties that appear to be sticking though are the detached houses – only 81 of 264 on the  market have buyers, a very low 31%. Leaving the best to the end though, its apartments that surprise me, with 35 of the 83 on the market (42%) having a buyer (interestingly in Derby only 30% of the apartments have buyers!).

I am always giving advice to my existing and new landlords in Burton on what to buy (or not as the case may be). Having this detail of information at my fingertips, allows me to spot trends in the local market, that enables to me to give the very best advice and opinion to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investment that I have advised on.

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

Is Horninglow the place to purchase a buy to let?

You may recall my article a few weeks ago regarding the Burton census. One of the final chunks of census data has recently been released by the Government, and for those of you that like to look at such things, it is a treasure trove of information. Information is so important when making decisions on what (or not) to buy when investing in property.

Also in previous articles I discussed Horninglow, but today, I want to look at Horninglow in much greater detail. The census data allows anyone to look at the data for areas and   housing estates, but even better down to individual roads. Such information allows us to weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.
Therefore, I looked at Horninglow as whole. There are just over 8,600 people living in 3,673 properties in the suburb.
Only 73% of the property is terraced or semi detached compared to the Burton average of 56%. However, it is the home ownership percentages that really get me interested, as it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties.
In Horninglow, of those 3,673 households, 29.7% own their property without a mortgage and an additional 32.1% households own their property with a mortgage. Only 15.1% (or be exact 539  households) are in the private   rented sector in Horninglow (compared with the Burton average of 15.4%).          
With such excellent demand from tenants for Horninglow, but a below average percentage of available rental properties, this could be the right area to purchase your next buy to let investment.
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.

If you are a landlord, new or existing, feel free to pop through the door of our offices on the High Street, call me on 07973 666229 or send me an email to davidm@professionalproperties.co.uk.

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

Stafford Street or Goodman Street – which is best?

I was talking to a couple last week who are considering becoming landlords for the first time and they were looking for advice as to whether a terraced property in the Eton Road area of Burton would be a good buy. I suggested they look South of the Eton Road Park on say, Stafford Street or Goodman Street. They were then interested in which would be the better investment and whilst properties on both streets can let and sell well, I wanted to do a little more research to help them with their decision.

Their budget only allowed me to look at in the £70,000 to £75,000 region, so looking at just 2 bed terraced houses in both streets, the average value on Stafford Street is £72,700, while 2 bed terraced houses on Goodman Street are around £70,100. To better understand the investment opportunities available, we need to consider the rents being achieved for 2 beds terraced on both streets. Looking at the last two years, the rents are almost identical to the pound at around £435 per month. However, to judge a rental investment, you must consider the capital growth as well as the yield.
In 1995, the average value of a terraced house in the Stafford Street was £28,700 and on the Goodman Street, £23,800. This shows that the average Stafford Street terraced house has risen by 152% since 2002 and an annual current yield of 7.1% a year whilst on Goodman Street, prices have risen by 194% and a yield of 7.4% a year.

Ultimately, Goodman Street property values have risen quicker to almost match Stafford’s in the last 19 years. I doubt very much that it will experience similar growth, over and above that of Stafford Street in the next 19 years. We would not have identified these difference in returns or the increase in values, without the extra investigation. In this case, it depends on the best available property to buy on the day.

Finally, one thing that struck me was the wide range of rents achieved on both streets. I would expect a 5% to 7% range of rents on a street for the same type of house. On both streets though, the gap is nearer 15%, as the average wood chipped walls terraced let for nearer £400 but a month, but the pretty ones, nicely decorated (and you don’t need to spend too much money to do that), can let for as high as £460 per month.

If you are a landlord, new or old, feel free to pop through the door of our offices on the High Street, call me on 07973 666229 or send me an email to burton@professionalproperties.co.uk .

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

Labour plan to ban letting fees to tenants

Thousands of letting agents have voiced their anger and frustration at Labour’s plans to force a Commons vote through next Tuesday on banning letting fees to tenants – and made clear their determination to fight every inch of the way.

The large majority of letting agents believe the move will have an adverse effect on tenants rather than, as is assumed, any perceived benefits. They believe that a ban on tenant fees would simply result in having to charge landlords more, while landlords in turn would pass costs on to tenants in the form of raised rents.

Here are some of the comments we have received so far from industry leaders:

Christopher Hamer, The Property Ombudsman: “There are certain costs that have to be incurred in setting up a tenancy and these will have to be borne by either tenant or landlord.

“If the landlord pays, it is inevitable that the cost will be rolled up into the rent and so is hidden from view. Better in my view that full disclosure of non-optional fees chargeable to a tenant applies. That is in accordance with the ASA ruling and makes the actual cost to the tenant transparent.

“Some research has suggested that landlords would not add the cost to the rent but seek out a cheaper agent. I have said previously that selecting an agent purely on price is a risk.”

Isobel Thomson, chief executive of the National Approved Letting Scheme: “NALS is very concerned about Labour’s call for a vote on the abolition of agents’ fees.

“It’s clear that at present there is a basic lack of understanding about how – and why – letting agents charge fees with an assumption that these charges are unfair.

“Anyone working within the industry on the other hand will know that time and manpower goes into tasks such as drawing up inventories, checking references and administration.

“These practices, when done properly, are valuable for all parties and the commercial reality is that they simply cannot be done for free. If all of the costs are transferred to the landlord this will ultimately mean that rents go up. We would encourage Labour to focus their attentions on making it a mandatory requirement for agents to be part of a Client Money Protection scheme.”

Andrew Bulmer, UK residential director, RICS: “There needs to be given careful consideration to any impact that this proposal may have on the property market, as it may lead to increased rents being passed onto consumers and result in landlords exiting the market, thereby potentially further limiting the supply of properties on the market.

“It’s vital that there is absolute clarity around consumer costs, with reasonably priced, upfront fees explained fully. However, fees from this type of work are important to chartered surveyors, particularly the smaller, independent, letting agencies which are already bearing the cost of regulations.”

Susan Cope, MD Professional Properties : “From the reputable agents, tenants receive a very good service. This service is designed to protect the tenant and their interests and to ensure they have security of tenancy. Obviously such services come at a price and if agents are unable to charge, there is a risk that service will suffer and the quality of administration processes will diminish. Tenants need to be protected but have to understand it comes at a cost to the agent.

“If the ban is goes through and the tenant doesn't have to pay, it will become part of the monthly rent if the costs are transferred to the landlord as the landlord still has to make a return on his investment."