Thursday, June 30, 2016

71.2% of Bingham Tenants are White Collar Professionals

With Bingham youngsters not able to buy their own property, my research would suggest the progressively important role the private rented sector has been playing in housing people in need of a roof over their head.

So who rents in Bingham? According to some detailed statistics from Durham University just released, for the Bingham Borough Council area, the current situation regarding social status of tenants shows some very interesting points. Using the well known Demographic ABC1 grade classifications which refers to the social grade definitions (which describe, measure and classify people of different social grade and income and earnings levels, for market research, social commentary, lifestyle statistics, and statistical research and analysis) this is what I found out.

Of the 9,910 tenants who live in a private rented property in the Bingham Borough Council area, 27.37% (or 2,712) of those tenants are classified in the AB category (AB Category being Higher and intermediate managerial / administrative / professional occupations), compared to 39.09% owner occupiers who own their property without a mortgage or 4.85% who rent their property from the local authority.

Looking at the C1’s (C1’s being the Supervisory, clerical and junior managerial / administrative / professional occupations), of the already mentioned 9,910 tenants in the area, an impressive 4,348 of them are considered to be in the C1 category (or 43.87%). Again, when compared with the owner occupiers who own their property without a mortgage, that figure stands at 31.27%   and 16.22% who rent their property from the local authority.  

This means 71.24% of tenants are considered white collar professional people in Bingham

The fact is that private tenants are moving up the social ladder and whilst back in the 1960’s and 70’s, the private rented sector in Bingham (and the rest of the UK) has customarily been viewed as a temporary tenure for 20 somethings before they bought a property, the increase in renting in Bingham, which I have talked about many times in the Bingham Property Market Blog may be a reflection of increasing difficulty for this group in accessing other tenures, but may also be a reflection that people nowadays choose to rent long term instead?

Bingham Landlords need to be aware that tenants now demand more from their properties, the agent and their landlord and whilst affordability for first-time buyers and tighter controls on lending may mean that potential first-time buyers are in the private rented sector for longer, they will still pay top rent for a good quality property.

Wednesday, June 29, 2016

Family Home, Park Road East, Calverton, Could See a Return of 6%!

This spacious family home could see a rental yield of around 6%!

The property looks to be in very good order and is close to local schools, which will appeal to tenants with children.  Calverton is popular with families and professionals alike, with good transport links to Nottingham and Mansfield.  A large village with lots of amenities and a great sense of community.  

I don't think this property will be around for long.

Being marketed with Gascoines, full details are here:

Saturday, June 25, 2016

57.6% of Rushcliffe Voters Voted to Remain in the EU – What Now for the 3383 Bingham Landlords and Homeowners?

As most of the polls suggested a Remain Vote, yesterday’s news that we would be leaving the EU came as a surprise to most people, including the City. The Pound dropped 6% almost immediately, after the City Whiz kids got their predictions wrong and MP’s from the Remain camp are using words like “challenging times ahead”.

.. and now the vote has been made .. what next for the 2969 Bingham homeowners especially the 1612 of those Bingham homeowners with a mortgage?

The Chancellor in the campaign suggested property prices would drop by 18%. Using Treasury estimates, their method of calculating this was tenuous at best, but focused around the abrupt and hasty increase in UK interest rates, which in turn would raise the cost of mortgages, and therefore lower demand for property, causing a drop in property prices.… and I would say, yes .. that will probably happen.

Bingham Property Values

Bingham property values will probably drop in the coming 12 to 18 months – but by 18% - I am sorry I find that a little pessimistic and believe that figure was rhetoric to get homeowners and landlords to vote in a particular way. But the UK property market is quite a monster.

Since the last In/Out EU Referendum in June 1975,
property values in Bingham have risen by 1656.7%

(That isn’t a typo) and whilst property prices did drop nationally by 18.7% between the peak of 2007 and bottom of the market in 2009, when one compares property values today in the country, compared to that all-time high of 2007, (the period before the financial crisis of the Credit Crunch of 2008/9) .. they are still up 10.14% higher.

Another Credit Crunch?

And so, notwithstanding the Credit Crunch, the worst global economic outlook since the 1930s and the recession it brought us, a matter of a few years later, the Government were panicking in 2012/3/4 that the housing market was a runaway train.

Now the same Credit Crunch doom-mongers and Sooth-Sayers that predicted soup kitchens in 2008/9 are predicting Brexit meltdown. Bad news sells newspapers. Stock markets may rise, stock markets may fall, yet the British public continued to buy property in 2009/10 and beyond. Aspiring first time buyers and buy to let landlords dusted themselves down, took a deep breath and carried on buying… because us Brit’s love our Bricks and Mortar .. we need a roof over our head.

However, as mentioned previously, if the value of the pound drops, in the past UK Interest Rates have risen to reverse that drop. However, whilst a cheaper pound will make your pint of Sangria a little more expensive on your Spanish holiday this year and make your brand new BMW pricier .. it will make British export cheaper! Which is great for the economy.

Interest rates
… and what of interest rates? Since 2009, interest rates have been at 0.5% and lots of people have become accustomed to those sorts of levels. So what if interest rates rise .. end of the world? Interest rates in the 1986/88 property boom were on average 9.25%, the 1990’s they were on average around 6.5% and uber-boom years (when UK property values were rising by 20% a year for three or four straight years across the UK) .. 4.5%. Many of you reading this who are in their 50’s and older will remember interest rates at 15%.

But I suspect interest rates won’t rise that much anyway, as Matt Carney (Chief of the Bank Of England) knows, raising interest rates causes deflation – which is the last thing the British economy needs at the moment. In fact they have been printing money (aka Quantitative Easing) for the last few years (which causes inflation) to the tune of £375bn a month. A bit of inflation because the pound has slipped on the money markets (not too much mind you) might be a good thing?

.. because whilst property values might drop in the country, they will bounce back. It’s only a paper loss.. because it only becomes real if you sell. And if you have to sell, again as most people move up market when they sell, whilst your property might have dropped by 5% or 10%, the one you want to buy would have dropped by the same 5% to 10% .. and here is the best part – (and work your sums out) you would actually be better off because the more expensive property you would be purchasing would have come down in value (in actual pound notes) than the one you are selling.

The Bingham landlords of the 414 Bingham buy to let properties have nothing to fear, nor do the 929 tenants living in their properties.

Buy to let is a long term investment. I think there might even be some buy to let bargains in the coming months as some people, irrespective of evidence, panic.  Even if we pull up the drawbridge at Dover and immigration stopped today, the British population will still increase at a rate that will exceed the current property building level. Britain is building 139,600 properties a year, but needs according to the eminent ‘Barker Review of Housing Supply Report’, the country needs to build about 250,000 properties a year to even stand still, and as the birth rate is increasing, the population is living longer and just under a quarter of all UK households now are occupied by a single person demand is only going up whilst supply is stifled. Greater demand than supply equals higher prices. That is definitely a fact.

So, what will happen next?

Well, there are many challenges ahead. The country has spoken and we are now in unchartered territory – but we have been through a couple of World Wars, an Oil Crisis, Black Monday, Black Wednesday, 15% interest rates and a Credit Crunch … and we survived!

And the value of your Bingham property? It might have a short term wobble… but in the long term -it’s safe as houses regardless.

Thursday, June 23, 2016

Asking Prices of Bingham Property Remain Steady

In many of my articles about the Bingham property market, I talk about values, i.e. what property in Bingham actually sells for, but I haven’t spoken about asking prices for while. Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on (the others being location, bedrooms and type). Price yourself too high and you will put off buyers. So let’s take a look at the Bingham numbers.

Over the last 12 months asking prices (i.e. the price advertised in the paper and on Rightmove) in Bingham have remained steady, leaving the average asking price in Bingham at around £219,200.

Interestingly though, when we look at, say semi-detached properties and flats, a slightly different picture appears. Twelve months ago, the average asking price for a semi-detached house in Bingham was £198,000 and today its £212,000 (a rise of 7%); whilst over the same 12-month period, the average asking price of a flat was £96,800 a year ago, and today its £103,400 (a rise of 7%).

However, my research shows that the supply of property for sale in Bingham is beginning to increase. In December 2015, there were 43 on the market in Bingham today there are 55 properties on the market (up 28%). This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Bingham property market. The Bingham property market still has substantial momentum and sufficient demand remains. This noteworthy increase in supply since Christmas is currently providing more choice for buyers.

… And here is the second point to make. Asking prices are one thing, but what a property sells for (i.e. value) is a completely different matter. These are the average prices achieved (i.e. what they sold for or the average value) for property in Bingham over the last 12 months...

·         Overall Average          £213,200
·         Semi-detached           £188,900
·         Flat                            £113,400

You can quite clearly see, there is a difference between what people are asking for property and what it is selling for. The underlying fundamentals of low interest mortgages and tight supply remain prevalent in the Bingham property market however, the number one lesson has to be this ... if you want to sell, be realistic with your pricing.

Wednesday, June 22, 2016

Family Home, Calverton, Could Give a 5% Yield

This family home is in good order and is situated within a popular development in Calverton.  A large village, with many amenities and good schools, this could make a great investment property which should have very few void periods.

On the market for an asking price of £164,950 with Gascoines of Calverton, details can be viewed here:

Thursday, June 16, 2016

2.97% rise in Nottinghamshire and Bingham Property Transactions

In this post credit crunch world of sub terrain low interest and annuity rates, the growth of buy to let since 2009 has been phenomenal. So much so, there has been an evolution in purchase of property in the UK from that of just buying the roof over one’s head to that of a buy to let investment where it is seen as a standalone financial asset to fund current and future (ie pensions) investment. So recently, a few days before the release of latest Land Registry data of property transactions, quite a few market commenters were anticipating a huge increase in the number of properties sold in January as the 1st of April 2016 stamp duty deadline got closer.   

Looking at the most recent set of data from The Land Registry, it seems there has been a slight rise in the number of completed property sales in the Nottinghamshire County Council area. Year on year, completed property sales in January (the latest set of data released) rose by 2.97% to 831 compared with 807 in January 2015. Nationally, the number of completed house sales fell by 5% in January 2016 compared with January 2015. Some might say this counters the reports that there was a rush by landlords to buy ‘buy to let’ property ahead of the 1st April 2016 deadline but where was the stampede that many expected?

Looking even closer to home, in the NG13 postcode in January 2016, 19 properties changed hands, whilst 30 properties did so in January 2015. It’s even more interesting when you look at the average price paid, in January 2016, it was £254,091 yet in January 2015, the average price paid was £246,101.

Is the buy to let dream over for Bingham landlords?

.. but as ever my Bingham Property Blog readers, the devil is in the detail. The 3% stamp duty surcharge for buy to let landlords was announced in the Autumn Statement on the 25th November 2015. Anyone who has bought a property knows, from their offer being accepted to receiving the keys and monies paid is a long drawn out affair, taking on average 8 to 12 weeks, as the Land Registry only get notified upon completion of the sale. 

So if there was a rush in the last few days of November/early December in the Bingham property market, we would only see the results of that in the February figures (released in June) and more probably March’s (released in July).

So why all the doom and gloom? Simple .. bad news sells newspapers and gets the headlines. Let’s be honest, the headline is designed to be eye catching. It just goes to show you should look deeper into something before making a judgment!

Wednesday, June 15, 2016

Ready To Let - Great Investment Opportunity - Harebell Gardens, Bingham

This fab property looks as if it needs little / no work to get it ready for the rental market.  A quick, easy investment for any new or experienced landlord. 

A fantastic kitchen and a nice area - 2 of the most important factors for tenants in today's market, and this property ticks both of those boxes!

Do not delay, contact the agent to arrange a viewing ASAP as this property will not be around for long:

Picture 1  Picture 5  Picture 11  Picture 8

Saturday, June 11, 2016

Brexit and Bingham Property market – 25% more properties on the market

April Fools Day was no joke for some landlords, as they rushed their buy to let property purchases throughout late March to beat the extra 3% stamp duty imposed on buy to let properties after the 31st March 2016. Because some investors brought forward their 2016 property purchases to save the extra tax, speaking to fellow property professionals in Bingham, all of us have noticed, since the clocks went forward, demand to buy in April and May from these landlords has eased.

Then we have the Brexit issue, which is also having a tempering effect on the Bingham property market – although if you recall I wrote about this a few weeks ago, and whilst an exit will have an effect – it won’t be the end of the world scenario some commentators are suggesting. Although the growth rate of Bingham property values is slowing, Bingham property values are still 3.6% higher year on year, albeit the growth rate month on month has started to moderate when compared to the heady days of month on month rises of 2014 and 2015.

All this had led to increase in the number of properties for sale. For example in the NG13 postcode, which mainly comprises of Bingham, Whatton, Bottesford, Aslockton there were 178 properties for sale in the postcode in December (of which 32 came on to the market for the first time). In January, February and March, 178 properties came onto the market in the postcode district (or an average of 59 per month), meaning by end of the first Quarter, there were 223 properties available for homeowners and landlords alike to buy in NG13 (i.e. a rise of 25.2% more properties for sale). These figures are mirrored in neighbouring postcodes throughout the Bingham area.

Nevertheless, I believe this easing of the Bingham property market is a good thing, as investment landlords wont have to pay top price to secure a property because of the lower competition. On the face of it, this easing should be bad news for the 7,057 Bingham homeowners, but nothing could be further from the truth. The majority of homeowners that move, move up market, (i.e. from a flat to terrace/town house, then a semi and then detached), so whilst last year you would have achieved a top dollar figure for your property, you would would have had to have paid an even higher top dollar to secure the one you wanted to buy. The Swings and Roundabouts of the Bingham Property Market!

However, all the signals suggest that whatever the aftermath of the approaching EU referendum, in the long term, the disparity between demand for Bingham property and the supply (i.e. the number of actual properties) will still exercise a sturdy and definitive influence on the Bingham property market. It would surprise me that if by 2021, whichever way we vote in late June, assuming we don’t have another credit crunch or issues like a major world conflict, property prices will be between 18% to 23% higher than they are today.

If you are considering purchasing a buy to let property or would like advice on your current investment properties please do not hesitate to give me a call.

Wednesday, June 8, 2016

2 bed investment property - Cropton Grove, Bingham

These 2 bedroom properties let very easily as they appeal to many different types of tenant, making them ideal investment opportunities.

This one looks like it may need a little TLC but once up to scratch it could see a healthy return of around 5%.

See full details here:

Picture 1  Picture 2  Picture 7

Wednesday, June 1, 2016

£4,600 boost to Bingham First time buyers

There’s a whole legion of wannabe Bingham first-time buyers keen to get on the property ladder and they now have a 3% price advantage over the previously quicker responding army of Bingham landlords with cash at the ready. Since the start of April, buy to let landlords have had to pay an additional 3% stamp duty so whilst demand from some Bingham buy to let landlords has dropped away, in the interim, it offers Bingham first time buyers (FTB’s) a chance to fill the vacuum with less competition from cash rich landlords (over two thirds of BTL properties were purchased without a mortgage in the last 7 years) who could bid more and complete quicker.

Looking at the average value of a terraced house in Bingham currently standing at £154,800, that means if our Bingham FTB went up against a Bingham landlord, the landlord would have to pay an additional £4,644 in stamp duty. Early antidotal evidence from fellow property professionals in the town is suggesting landlords are reducing their offers slightly on Bingham properties to reflect the extra stamp duty.  

Whilst on the face of it, it appears landlords are being punished by No.11 Downing Street, I actually believe this increase in stamp duty for landlords is a good thing for the Bingham property market as a whole.

Since 2011/12, the Bingham property market has performed very well indeed. Over the last 12 months, £30,456,580 has been spent buying 580 Bingham properties.  Figures from the Land Registry have just been released and month on month in our council area, property values are 0.1% higher, yet 3% higher year on year. These figures are nowhere near the heady days of 2003 (February to be exact), when Bingham property prices rose by 32.2% in 12 months.

So as property values in Bingham (and the UK as whole) start to stablise and come back to some kind of balance, I am beginning to see savvy landlords view the Bingham property market in a different light. Even with the Spring rush, gone are the days where you could make limitless money on anything that had a door, a few windows and roof. This stamp duty change has made more and more landlords take advice on what or not to buy and what to pay, meaning Bingham landlords are being more calculated with their Bingham BTL purchases. I am also seeing a variance between relatively brisk current price momentum and softer expectations in terms of property value growth in Bingham, this in part reflects amplified uncertainty about the short term economic outlook (eg Brexit, issues in the Far East etc).

Now I know a lot of Bingham landlords brought forward their BTL purchases to beat the stamp duty deadline. However, it is probable that hunger from Bingham investors will return for the right Bingham property later in the year, especially if it’s at the right price and offers a decent yield. However, in the meantime, Bingham FTB’s could and should, in the short term, make hay whilst the sun shines plug the gap and grab a bargain!