Thursday, April 28, 2016

Bingham Property Values rise by 0.2% month on month

My latest analysis, using the Land Registry and Office of National Statistics, shows that overall, month on month, Bingham property values increased by 0.2%. The year on year figures showed the value of residential property in Bingham has increased by 3.6% in the year to the end February 2016, taking the average value of a property in the council area to £131,500.

It gets even more interesting when we look at the last few month's figures and see the patterns that seem to be emerging.

·         January 2016               - a rise of 0.0%
·         December 2015          - a rise of 0.2%
·         November 2015          - a drop of 0.2%

We have talked in many recent articles about the lack of properties being built in Bingham over the last 30 years. This lack of new building has been the biggest factor that has contributed to Bingham property values still being 128.19% higher than in 1995.

At the risk of repeating myself, until the Government addresses this issue, and allows more properties to be built, things will continue to get worse as the UK population grows at just under 500,000 people a year (which is a combination of around 226,000 people because of higher birth rates/people living longer and 259,000 net migration) whilst the country is only building 152,400 properties a year – no wonder demand is outstripping supply.

Another reason intensifying the current level of property values in Bingham, is the fact that people aren’t moving home as much as they used to, meaning fewer properties are coming onto the market for sale. There is a lack of choice of property to buy, meaning people thinking of moving are discouraged from putting their property on the market. This unevenness between demand from would-be purchasers and the number of properties coming on to the market for sale is causing pressures in Bingham (and the rest of the UK).

So what of the future of the Bingham property market? I firmly believe the property market in Bingham and the country as a whole is changing its attitude about homeownership. Back in the 1960’s, 70’s, 80’s and 90’s, getting on the property ladder was everything. Since the late 1990’s, we as a country (in particular, the young) have slowly started to change our attitude to homeownership.

We are moving to a more European model, where people choose to rent in their 20’s and 30’s (meaning they can move freely and not be tied to a property), then inherit money in their 50’s when their property owning parents pass away, allowing them to buy property themselves ... just like they do in Germany and other sophisticated and mature European counties. So, whatever the vote on the 23rd of June, if you think about it, we might be more European than we think!

Friday, April 22, 2016

Delightful Flat in Sought After Woodborough - Great Investment Opportunity

This 1 bed flat within a Grade II listed former racing stable is situated in the delightful village of Woodborough and could see a return on your investment of around 5%.  A rare find which would be very popular with tenants.  See the details here:

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Thursday, April 21, 2016

Bingham’s ‘Generation Rent’ to Grow by 85 Households by 2021

Some commentators are saying buy to let is about to die, with the new stamp duty changes and how mortgage tax relief will be calculated. Some say 500,000 rental properties will flood the market nationally in the next 12 months as landlords leave the rental market. Have you heard the phrase ‘Bad news sells newspapers’? Let me explain why buy to let in Bingham is only going in one direction – and not the direction the papers say they are going.

According to Sheffield University, buy to let landlords will continue fuelling the growth of the private rented sector in the coming decades. By their estimates (and they are considered a centre of excellence on the topic), the rate of homeownership nationally will fall to 50% (today it is 77.4% in Bingham) by 2032, while the rate of private sector renting will increase to 35% (interestingly, in Bingham it stands at 10.6% today).

Therefore, the demand for rental accommodation in Bingham will grow by 85 households in the next five years ... 
Bingham property values over the last six years have risen a lot more than average wages/salaries. As homeownership and mortgage availability is dependent on your ability to pay this has served to push home ownership further out of reach for many - at a time when the stock of council houses has actually withered. (Nationally, the number of council houses in the last ten years has dropped from 3.16m to 2.18m households - a drop of 31.1%).

Now it’s true the Conservative’s efforts to fix the deficiency of affordable housing have focused on those who want to buy a home, ranging from Help to Buy and their much vaunted Help to Buy ISA, and Starter Homes Scheme, an initiative offering a 20% discount for first time buyers … but if you are unable to save for the deposit ... none of this means anything to the ‘20 something’s’ of Bingham ... and they still need a roof over their heads!

Currently, 929 people live in private rented accommodation in Bingham

These are big numbers and a sizeable chunk of the electorate. So whilst it appears Bingham “Generation Rent” youngsters will continue to rent and to not to buy for the reasons set out above, Bingham buy-to-let landlords will be lifted by the projections of greater rental demand. Bingham and the area around it still offers the prospect of strong economic growth forecasts and has a reputation as a lively and desirable place to live.

So, by 2021, the number of rental properties in Bingham will rise to 584

This prediction in growth of the Bingham rental market is even on the back of the government clamping down on tax reliefs for landlords. The point is this, gone are the days of making guaranteed returns on BTL property. For the last 20 to 30 years, irrespective of which property you bought, making decent money on buy to let property was like shooting fish in a barrel – anyone could do it  - but not now. You must take a more considered approach to your existing and future portfolio, especially in Bingham. The balance of capital growth and yield, especially in this low interest rate world we live in, means Bingham landlords need to do more homework to ensure the investment in property gives the desired returns. 

Thursday, April 14, 2016

3 bed investment potential in East Bridgford

This 3 bed semi is on the market for £169,950 with Rex Gooding. East Bridgford is a popular village with a great primary School and has good links to Nottingham and the A46. This property should see a yield of around 4.5% and should also see a good level of capital growth in the future due to its location. 

It might need a little updating in the bathroom but the kitchen appears to be in great condition and the this property is larger than most 3 bed semis on the market!

4.7% Rise in Bingham Property Values Adds Weight to the Town’s Housing Crisis

Bingham’s continuing housing shortage is putting the town’s (and the country’s) repute as a nation of homeowners ‘under threat’, as the number of houses being built continues to be woefully inadequate in meeting the ever demanding needs of the growing population in the town.

Back in the Autumn, George Osborne, used the Autumn Statement to double the housing budget to £2bn a year from April 2018 in an attempt to increase supply and deliver 100,000 new homes each year until 2020.  The Chancellor also introduced a series of initiatives to help get first time buyers on the housing ladder, including the contentious Help to Buy Scheme and extending Right to Buy from not just Council tenants, but to Housing Association tenants as well.

Now that does all sound rather good, but the Country is only building 137,490 properties a year (split down 114,250 built by private builders, 21,560 built by Housing Associations and and a paltry 1,680 council houses).    If you look at the graph (courtesy of ONS), you will see nationally, the last time the country was building 230,000 houses a year was in the 1960’s.

How George is going to almost double house building overnight, I don’t know.

Looking at the Bingham house building figures, in the local authority area as a whole, only 190 properties were built in the last 12 months, split down into 160 privately built properties and 30 housing association with not one council house being built.   This is simply not enough and the shortage of supply has meant Bingham property values have continued to rise, meaning they are 4.7% higher than 12 months ago, rising 0.6% in the last month alone.

It’s all about supply and demand, this economics game.   The demand for Bingham property has been particularly strong for properties in the good areas of the town and it is my considered opinion that it is likely to continue this year, driven by growing demand among buyers (both Bingham homebuyers and Bingham landlords alike). You see Bingham’s economy is quite varied, meaning activity is expected to remain relatively strong into the early Summer of 2016, especially as some Bingham buy to let landlords try to complete purchases ahead of the introduction of new stamp duty rules in April.

.. and of supply, well we have spoken about the lack of new building in the town holding things back, but there is another issue relating to supply.   Of the existing properties already built, the concern is the number of properties on the market and for sale.   The number of properties for sale last month in Bingham was 37, 12 months ago, that figure was 32, whilst three years ago it stood at 110… a massive drop!

With demand for Bingham property rising, minimal new homes being built and less properties coming onto the market, that can only mean one thing ... now is a good time to be a homeowner or landlord in Bingham.

Thursday, April 7, 2016

Has Owning a Home Become an Unattainable Dream for the Bingham 20-Somethings?

Looking at some research by the Post Office from a few years ago, in the 1960s the average age people bought their first house was 23. By the early 1970s, it had reached 27, rising to 28 in the early 1980s.Ask a Bingham ‘twenty something’ and they will say they do not expect to buy until they are in their mid thirties - seven years later than the 1980s. Some people even say they will never be able to buy a property and the newspapers have labelled them ‘Generation Rent’ as they are people born in the 1980s who have no hope of getting on the property ladder. One of the major problems facing young Bingham people is the large deposit needed to get a mortgage .. or is it?The average price paid for an apartment in Bingham over the last 12 months has been £110,500 meaning our first time buyer would need to save £5,525 as a deposit (as 95% mortgages have been available to first time buyers since 2010) plus a couple of thousand for solicitors and survey costs. A lot of money, but people don’t think anything today of spending a couple of thousand pounds to go on holiday; the latest iPhone upgrade or the latest 4K HD television. That amount could soon be saved if these ‘luxuries’ were withheld over a couple of years, but attitudes have changed.Official figures, from the Office for National Statistics, show the average male in Rushcliffe with a full-time job earns £684.50 per week whilst the average female salary is £504.80 a week, meaning, even if one of them worked part time, they would still comfortably be able to get a mortgage for an apartment.  I was reading a report/survey commissioned by Paragon Mortgages from the autumn of last year. The thing that struck me was that when tenants were asked about their long term housing plans, some 35% of participating tenants intend to remain within the rental sector and 24% intended to buy a house in the future, with the proportion of respondents citing the “unaffordability” of housing as the reason for renting privately increasing from 69% to 74%.However, time and time again, in the starter home category of property (eg apartments), nine times out of ten the mortgage payments to buy a Bingham property are cheaper than having to rent in Bingham. 

It is the tenant’s perception that they believe they can’t buy, so choose not to. Renting is now a choice.

Tenants can upgrade to bigger and better properties and move up the property ladder quicker than their parents or grand parents (albeit they don’t own the property). Over the last decade, culturally in the UK, there has been a change in the attitude to renting, so, unless that attitude changes, I expect that the private rental sector in Bingham (and the UK as a whole) is likely to remain a popular choice for the next twenty plus years. With demand for Bingham rental property unlikely to slow and newly formed households continuing to choose the rental market instead of purchasing a property. 

I also forecast that renting will continue to offer good value for money for tenants and recommend landlords pursue professional advice and adopt a realistic approach to rental increases to ensure that they are in line with inflation and any void periods are curtailed. 

Wednesday, April 6, 2016

Great BTL Investment Opportunity - Charlock Gardens, Bingham

This house would make a lovely buy to let investment.  It would appeal to lots of our tenants, due to its great location and modern style.  On the market for £150k with Richard Watkinson & Partners, see full details here:

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Image 2 of 9: Sitting room

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Image 8 of 9: Rear garden

Monday, April 4, 2016

£130,000 2 bed - 5.3% return Newton

This 2 bed property is on for sale with Richard Watkinson in Newton for £130,000 and is a great opportunity for an investment landlord. 

With its close location to Nottingham these would let for at least £575 pcm (being conservative) which would see a potential return of 5.3% if purchased for the asking price.

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Image 4 of 10: Dining kitchen

Image 6 of 10: Bedroom 1