Nuneaton rental market during COVID 19 & Christmas

Considering the months of lockdown and working from home, we’ve been pretty busy at QT Homes Lettings (working in the garden and from the paddling pool clearly didn’t adversely affect my ability to work!…I might make it an annual thing).

Our new clients have all raised the same concerns so I thought it would be best to share their concerns with all of you because you may all be wondering exactly the same thing…

Q: Are you still going to be able to find me a tenant during lockdown and on the run up to Christmas?

A: Yes. Absolutely!

We have not seen a decline in enquiries for rental properties AT ALL during this lockdown. It has been business as usual (other than working from home and turning up to viewings looking like some kind of scary crime scene investigator in my mask, gloves, shoe coverings as well as pointing a thermometer gun at people!)

Renters are as desperate as ever to find properties in Nuneaton and I’m confident that even during the December weeks, we’ll still be doing viewings and taking applications ready for the new year.

Recently, we had a 2 bed flat to rent and it was viewed, referenced and the tenant moved in within 3 days! This was super speedy and I can’t promise that they will all be this fast but it just goes to show that the desire from renters is there to commit and get in as quickly as possible.

A 3 bedroom terraced house in Stockingford, Nuneaton had 26 enquiries within a couple of days of listing it. Someone has applied and is going through referencing as we speak and they hope to move in on 1st December so, from start to finish, that will have been 2 weeks.

Don’t despair and think that COVID and Christmas will slow things down for you and your rental income.

If you’re planning on doing things in house then great! If you’re looking for an Agent to find you a tenant in super speedy time then I know a really good one 😉

Stay safe All!

Melissa

Nuneaton *STAR BUY*…there are still some out there!

Here is a 2 bedroom terraced house on Clifton Road, which is on the market for £109,950. It is in need of some TLC and it is a slightly quirky layout but, it could still make a good investment property.

If this was done up to a nice standard, it could probably fetch around £600- £650/month rent (depending on the finish), giving you an annual yield of 7.09% (max) (not including the cost of the works involved).

Take a look at the property HERE

Clifton Road is a one way road about 10 minutes walk from Nuneaton town centre. It is close to local amenities as well as schools and popular commuting links. We currently have 2 properties on Clifton Road and never struggle to rent them out.

This looks like one of the best “bargains” to be had at the minute so I’m sure it won’t hang around for long!

Happy investing folks!

Melissa

What’s the difference in price between a 2 & 3 bed investment property in Nuneaton?


I regularly look on the property portals to see what’s for sale in Nuneaton and to find that gem that I consider to be a “star buy” for investors. I’m sure most of you do too.


Now, I don’t know about you, but I’m thinking half of the estate agents were drunk when they valued some of these houses because….daaaaaaamn! They are a lot of money for a big lot of mess! There were so many 2 & 3 beds listed for £130,000 and some were in need of a complete overhaul!


Looking back over the last 10 months (bearing in mind there’s a pandemic going on….in case you hadn’t heard) there has been 101 potential investment properties listed for sale, 37 three bedroom properties and 62 two bedroom properties (terraced houses). Once I averaged out the price of the 2 beds and 3 beds, guess what I found?….

Now, it might look like a big difference on the chart but, bare in mind that the graph increases in £10’s. In a nutshell, the average asking price for a 2 bedroom investment property was £118,585 and the average asking price for a 3 bedroom investment property was £118,629. Go figure!


What does this mean for your annual yield?
Well, a two bedroom property in Nuneaton will fetch, on average, £642/month rent and a three bedroom property in Nuneaton will fetch £668/month rent (although, these look low in my opinion).
So, based on my findings, you could buy a 2 bed terraced house for £118,585 and get £642/month rent, giving you an annual yield of 6.5% OR you buy a 3 bedroom terraced house for £118,629 and get £668/month, giving you an annual yield of 6.76%.


Is it just me or does this sound completely bonkers?


The good news is that I have found a couple of star buys amongst the madness but, guaranteed, they will be in high demand.


If you are looking for an investment property to buy at a good price before it even gets advertised on the property portals, feel free to get in touch to ask more about our investment programme.

Which areas of Nuneaton are best for property investment?

The short answer to this is- all areas!….the end.

Only Joking! What a boring blog post that would’ve been.

We have investors from all over the place contacting us to find out where in Nuneaton they should invest. Those of us who live in Nuneaton and know the areas well may have our own ideas but, as a Letting agent who has had properties all over Nuneaton, I can assure you that any area of Nuneaton is popular for rentals.

A quick breakdown for you:

Properties near the town centre (CV11 4 and CV11 5)- usually get let before we even get to advertise them! People love the terraced houses skirting the town centre. Mostly because of the convenience of town (especially if they don’t drive), being close to the train station is usually a winner for those who have to commute for work, there are several good primary & secondary schools close by and people often like to be close to all the local amenities just a stones throw away.

Stockingford (CV10 7 and CV10 8)- slightly out of town but it comes with it’s own benefits like access popular commuting links. George Eliot hospital is close by so you usually get a lot of medical professions enquiring about the Stockingford properties. Once again, there are several schools, local amenities and people often like to live there for the convenience of being close to family/friends or they may have grown up there and are looking to move out but want to stay in the same area. Stockingford will also soon have it’s own disused train station revamped and allow residents of Stockingford and galley common to access links to Birmingham and potentially further afield for employment.

The more affluent areas (Weddington & Whitestone)- These are also popular for families with a higher income but can some times take longer to rent out.

The question to ask is not what area is best but, what type of property is best. From experience, the 2-3 bedroom terraced properties (annual average yield of 6-7% at the minute) will rent all day long and the 2-3 bedroom semi detached (average of 4-5% annual yield at the minute) with a drive way and garage are also popular (in all areas) but, it’s when you start getting to the 4-5 bedroom properties that things start to slow down a bit. Anyone who can afford to rent a 4-5 bedroom house can afford to pay a mortgage on one so, it is often the case that these are more difficult to rent out. It’s not impossible but it does take that little bit longer and you find that the tenants don’t stay long (maybe they’re having renovations done on their own property, they have sold their house but not found anywhere to move to, they are here on a 12 month contract for work etc).

Not a lot of investors would start racking up the 4-5 bedroom detached properties, which I appreciate but, it’s worth knowing.

If you have any questions about specifice areas of Nuneaton and what the rental yield will be, please get in touch and have a chat. We’re always happy to help.

Melissa

Have you protected the income from your Nuneaton property investment?

I’m sure you’re all aware how difficult things are becoming with rental properties (thanks to COVID-19). We’re now having to give tenants 6 months notice and can’t accelerate evictions until they are in 6 months rent arrears!! Like it wasn’t bad enough before when tenants were in arrears!

So, with this in mind, I thought it would be the perfect time to encourage you all to look into rent protection, which can be added onto your building or landlords insurance from around £5+/month.

It’s worth every penny if you ask me. Especially with what’s happening at the minute. Our lives are changing on a weekly basis and many people are sadly loosing their jobs, which will inevitably impact the landlords who are renting out their investment properties.

The rent protection that you get may even cover legal expenses and eviction costs so please, take some time and get a quote for this to help protect you and your investment income.

I know I often have an air of sarcasm in my blog posts but I feel it I have to say to everyone out there….Be Kind! It’s such a rubbish time at the minute, for all of us so, let’s all do our bit and be the best people we can be.

For more life coaching and motivational talks, please get in touch ;-)….there’s the sarcasm again!

If you need contacts for quotes on insurance, please let us know and we’re happy to recommend.

All the best,

Melissa

Nuneaton Rental Properties- supply & demand

With things picking up again after lockdown and being inundated with tenants looking for rental property in Nuneaton, it got me thinking about supply and demand.

We’ve never had an issue finding good tenants for properties because we’ve always been flooded with enquiries (usually within a few minutes of listing the property online). For example, a property we had recently was a 3 bedroom terraced in Stockingford, Nuneaton CV10. We had over 70 enquiries for it within a couple of days!

At this point I thought it best to pause the marketing and allow time to pre-qualify all of the potential applicants. However, if I had not done that, the enquiries probably would’ve been well into the 100’s after a few more days of advertising.

So, I had a look to see what NEW property rentals have been listed with “on the market” since 1st July 2020 to date (including all agents in Nuneaton) . In the CV10 area there have been 47 properties come available and in the CV11 area only 32 properties. These are your average 2-3 bedroom terraced properties.

Bearing in mind the amount of people who enquired about one property, this amount of NEW properties would not have even covered all of the applicants we had! What was even more surprising was to see that some properties were still available after being on the market for more than a month!

To sum up, the demand is always there for rental properties in Nuneaton, regardless of area, property type, size etc. When I list a property to rent, I often think of it like expecting a stampede of buffalo like in the lion king. Thankfully it’s not as dangerous!

To everyone out there- stay safe! Keep investing in Nuneaton and we’ll find you buffallo…I mean tenants in no time 🙂

Melissa

New notice period for rental properties- Nuneaton Landlords…Listen up!

I wanted to get this VERY important information out to you as soon as possible and make it as detailed as possible, so…… I copied it from HMRC website. I know, I know, that’s so un-original! But it’s important so, read on…

“The provisions in the Coronavirus Act 2020 have been extended meaning that from 29 August 2020, landlords must provide six months’ notice to their tenants in most circumstances. However, there are some serious cases where it is right that landlords are able to start progressing within a shorter timeframe. This is because of the pressures these cases place on landlords, other tenants and local communities.

These changes mean that from 29 August 2020:

  • For notices in relation to anti-social behaviour, domestic abuse, rioting and false statement, the required notice periods have returned to their pre-Coronavirus Act 2020 lengths. In some cases, this means that proceedings for anti-social behaviour can be brought immediately after notice has been served. Notice periods on these grounds otherwise vary, depending on the type of tenancy and ground used, between two weeks and one month.
  • Where at least six months of rent is unpaid, a minimum four-week notice period will be required. If less than six months of rent is unpaid, then the notice period is six months.
  • Where a tenant has passed away or is in breach of immigration rules and does not have a right to rent a property in the United Kingdom then a minimum three-month notice period is usually required.
  • Where a social tenant has an introductory or demoted tenancy (used by local authorities), for cases concerning anti-social behaviour (including rioting) and domestic abuse, a four-week notice period will be required. Otherwise, notice periods for Introductory and Demoted Tenancies will be six months.
  • A six-month notice period is required for all other grounds, including Section 21 notices and, as highlighted earlier, where accrued rent arrears are less than the value of six months’ rent.

At the expiry of the notice period, a landlord cannot force a tenant to leave their home without a court order. When the notice period expires, a landlord would need to take court action if the tenant was unable to move. We strongly advise landlords not to commence or continue eviction proceedings during this challenging time without a very good reason.

Where appropriate, if disputes over rent or other matters persist, landlords and tenants are encouraged to consider mediation. Mediation allows an independent third-party to assist those involved to reach a mutually acceptable agreement to resolve their dispute, without the matter needing to go to court. While early mediation may be most beneficial in helping parties come to an agreement, this can take place at any point during the possession action process.”

It’s me again now. So, that makes for an interesting read, doesn’t it. All i will say is, if you are managing properties yourself just KEEP IN TOUCH with your tenants. Please be understanding, be supportive and make compromises. I know there will be some people out there who go on the defensive and demand the rent but, trust me, that definitely will not help! If tenants know that you are on their side, they will be so much more cooperative to help you too.

If it’s not the rent that’s the issue but it’s antisocial behaviour then you will be able to get some additional support for that.

Good luck out there! It’s a crazy world we’re living in at the minute.

Melissa

*Star Buy*-Nuneaton Landlords looking for next property investment…

This 2 bedroom terraced on Bracebridge Street, Nuneaton is currently on the Market with Your Move for £100,000 and looks as though it could be a great investment opportunity!

Yes, it needs quite a bit of attention but for those DIYers out there, it’s a perfect little project and potentially fantastic investment. I can potentially see two options for this…

Option 1- Buy the house, do what needs to be done (up to £10,000 if you can do most of it yourself) and then rent it out for around £600/month. Giving you an annual yield of 7.2% (not including the cost of the works to do it up)

Option 2- Buy the house, split it into two 1 bedroom flats (which looks achievable from the floor plan) and get an income of £1100/month, which would give you an annual yield of 13.2%!

In fact, I may go and have a look at this myself!

Happy Investing.

Melissa

What exactly is happening to Nuneaton house prices post lockdown?

What will house prices do this year? Do we sit and wait patiently for the much-predicted house price crash in the next few months, or will the UK property market bounce back following the stamp duty holiday announcement?

If, like me, you are confused by the latest figures released by Rightmove, which show a 2.4 per cent house price surge compared to March in the month leading up to 8th July 2020. This number comes in only a few weeks after other house price data was showing a steady decline, with the first annual house prices fall (of 0.1 per cent) since 2012. Buyers and sellers alike are struggling to get their heads around these fluctuations understandably!

It would seem that the government’s stamp duty holiday plan is paying off, at least in the short term: the cancellation of all stamp duty payments on properties up to £500,000 has inevitably resulted in a spike of buyer interest – and in sellers being able to raise asking prices, bringing up the average property price in the UK to £320,265.

To find out more about the effect this is all having on Nuneaton house prices whether you are buying or selling, please feel free to drop us an email at info@qthomes.co.uk