I have been reading lots of articles in the media about uncertainty in 2017, if 2016 is anything to go by who knows what will happen!!
It got me thinking about the Bingham property market, employment levels and the availability of credit?
We have to realise that the chronic shortage of housing will keep prices buoyant even if lending does become more difficult.
We have seen lots of changes in Bingham since 1998. If there has ever been a problem for people to borrow money or to secure a mortgage, it has always increased the numbers of people looking to rent a property.
The increased demand, and shortage of rental available, only results in rents increasing. Perhaps it will become more viable for a landlord to invest if they can see the returns on a rental property grow.
The government do seem keen to keep increasing the taxation levels on landlords. Without people investing in property there would be no Private Rented Sector to cater for those who choose to and need to rent. It’s often their only option or the best option for their current circumstances.
I believe we will see those with some cash to invest still buying property, especially if the yields become more favourable, as the returns from savings are expected to remain low. The increasing yields would offset the increasing taxation levels for landlords but it is not going to help the tenants of Bingham – many who are just about managing at the moment.
If you are already a landlord and concerned about the effect of a potential unsettled period there are things you can do to minimise your exposure to risk. The main things are ensuring your property is well maintained and regularly inspected. Make sure you have a comprehensive Buildings insurance with reasonable excesses – you don’t want any nasty surprises from an escape of water for example.
It seems very unlikely, but should employment levels in Bingham ever be affected, Landlords could consider taking out a Rent Guarantee. If a tenant becomes unable to pay then the rental income will be protected and the costly eviction process will also be covered. I do believe here in Bingham we are well placed geographically for people to be able to find work.