Barnstone Cottage - Investment Potential 5%

A rural investment opportunity today:

This is a lovely cottage which has had most of the work done to bring it to today's market standard.  

Situated in a rural location, within the Vale of Belvoir village of Barnstone, the property would appeal to many different types of tenant, from empty nesters wanting to downsize, to professionals wishing to escape the rat run.  

With good road links to Nottingham and Grantham, and the market town of Bingham on the doorstep, with its station in close proximity, this could make a sound investment for any landlord.

Full details can be found here:

http://www.rightmove.co.uk/property-for-sale/property-44327421.html

Thinking about Gas Safety Week!!

This week is gas safety week. Having a gas safety check done by a registered Gas Safe engineer is an annual requirement of every landlord. The engineer must test all gas appliances in a property every year, and it’s a good idea to include the checking of carbon monoxide alarms while they are at it.        
  
What worries me is the number of times a gas safety check is not kept up to date. This is a vital part of a landlords responsibility and the risks if it gets forgotten are not worth thinking about!

For our managed properties we have robust systems in the office to ensure that we can request the checks to be carried out during the month before the due date. We are also audited annually and part of this includes ensuring all our managed properties have a valid gas safety check. This is a simple thing to ensure if it is part of your routine when managing 300+ properties.

If you are a landlord that self manages their property then you must not under estimate the importance of this check. Everyone is aware of the health and safety aspect of maintaining a boiler or gas appliance but there can be other implications to not having a gas safety certificate. But you need to consider the implications if a tenancy starts to go wrong.

Should a landlord need to gain possession of a property they will generally rely on a section 21 notice. If they need to gain possession through the courts they will require a landlord to supply not only the Tenancy Deposit Registration Certificate but also a copy of the EPC for the property and an up to date Landlord's Gas Safety Certificate.

If a tenant will not allow access for the check to be carried out it can be a sign of problems at the property. My advice to any landlord if self managing is to set up a reminder the month before it is due and to keep records of when the engineer was instructed or appointments with the tenants made.

If you find yourself in a situation where the tenant has stopped paying rent or you are worried about being able to get the gas safety check completed please give me a call. I am happy to discuss, in confidence,  any circumstances giving landlords cause for concern. 

Lowdham Investment Property Could Give Landlord a Return of over 6%

This Lowdham flat is on the market with Lesley Greaves, Burton Joyce, for £71,999.  

Situated in a picturesque location with far reaching views, it also benefits from great transport links.  It is neutrally decorated so should not need too much maintenance in order to let.

It would suit a single professional and could give an investor a healthy return of around 6%!

See the property here:

http://www.rightmove.co.uk/property-for-sale/property-58315529.html

      

Another Great BTL Opportunity in Bingham!

Apartments on this ever-popular development do not hang around for long.  This is a well priced property and looks to be in good order.  At the asking price an investor should see a return of over 5%.

Full details can be seen below:

http://www.rightmove.co.uk/property-for-sale/property-61421333.html

Who is renting in Bingham?

The idea of a “typical tenant” has disappeared from the UK’s private rented sector. Middle-aged professionals are now renting alongside teenage students in a market that has turned on its head.

Society is changing, as well as the effect of the current housing crisis the private rented sector is very different to 18 years ago when we started letting houses. Divorce, redundancy, and relocation are now common reasons for renting a home as well as the usual new relationships and moving out of home. As property prices carry on rising and availability continues to fall many older people are using the private rented sector to allow them to downsize.

New figures show 18% of people in the East Midlands now rent a property. The private rented sector is a vital part of the housing market. New build targets are not being met and the increase in the price of an average UK home is squeezing out all but the most affluent buyer.

The tenant demographic is much broader than in the past for several reasons. The average age of a first time buyer is 30 so many more young people are renting for longer before making the step into home ownership.

Employment opportunities are not as secure as they used to be and in a rented property there is a lot more opportunity to move areas if you need to.  If you have managed to save up enough for a deposit and you wish to apply for a mortgage it can be difficult if you are on a temporary contract; and even harder if it is a zero hours contract - no matter how many hours you regularly work.

Many of our tenants are in fact landlords themselves. They may be renting out a smaller property in order to help themselves move up the housing ladder. They may not be able to find the right property to buy or not in a position to sell the smaller property so rely on being able to let it out to pay the mortgage and afford a property in a different area or large enough for a growing family.

People are seeking out good quality rental property that will give them a nice place to live for longer periods. We need a healthy private rented sector in Bingham to service the demands of a modern population and encourage employers to stay in the area.

If you are considering investing in property it is important to do your research. Making sure the property you buy will appeal to the right type of tenant will minimise voids and reduce the running costs. 

Apartment Could Make a Good BTL Investment - Green Court, Bingham

We have tenants waiting for this type of property in Bingham.  An apartment within a secure development which is close to the station and town centre.

We should see a rental of around £550 PCM on this apartment.

Details can be found here:

http://www.rightmove.co.uk/property-for-sale/property-55838761.html

    

Reduction in Home Ownership levels in the East Midlands.

I have been reading a report by the Resolution Foundation this week and it is looking at levels of Home ownership. They have quoted figures from the Labour Force Survey which suggests a downward trend of home ownership since the UK highs just after the turn of the Millennium.

The % of people owning a property in the UK had been increasing steadily until early 2000’s when it started to drop. The figure for home ownership currently sits at 63.8% of the UK population.  The last time we saw this level of home ownership we have to go back to 1986. House prices were much cheaper then but remember average mortgage interest rates were around 9%.

If we look at the East Midlands the figure currently sits at 67% which is still quite a drop from its peak of 75% in 2004.

The average house price for first time buyers is around £150,000 these days and this means a deposit of around £15,000 needs to be available to secure a decent mortgage product. First time buyers are getting older when they purchase their home, in the UK it is currently 30 years old. Buyers are likely to be looking for a property that will give them the space for a family so it can take longer to save.

A consequence of this trend is the growth in the private rented sector. I am always talking about how the attitude towards renting has changed over the years and how it has become more of a lifestyle choice than a short term necessity. But more about that in next week’s article.

When you look at rental levels at the peak of home ownership in the East Midlands (October 2004) the percentage of people in the private rented sector was 8%. It is currently nearer 18%.

The figures show the numbers of people renting is increasing and this is exactly what we have seen in our office. It’s not just the volume of renters, those who are living in a rented property are staying put for longer. It is taking longer to save for a deposit or to find the right property to buy with so few coming onto the market for sale these days. One thing is for sure it’s a great time to invest in rental property!