The 2017 General Election and the Nuneaton Property Market.

The past does not equal the future however, it’s as good a barometer as any when it comes to making attempts to predict it, and the Nuneaton hosuing market…

Looking and analysing the past 5 general elections I have made some interesting discoveries on the before and after a general election and how this affects the property market…if at all.

Out of the five general elections (1997, 2001, 2005, 2010, 2015) two were not certain (2010 with the coalition government of Lib-Dems and Conservatives and 2015 with the surprising Tory majority). So I wanted to compare what happened to the number of houses sold and prices achieved between the three certain elections (1997, 2001 and 2005) against the unexpected ones of 2010 and 2015.
Look at the first graph below comparing the number of properties sold and the dates of the general elections….

Looking at the number of monthly transactions (the blue line), there is a certain pattern to the housing market. That pattern has never changed since 1995 (meaning the periodic fluctuations that occur regularly based on a pattern – i.e. you can see how the number of properties sold dips around Christmas, rises in Spring and Summer and drops again at the end of the year).
The red line is a 12 month ‘moving average’ trend line which enables us to look at the ‘de-seasonalised’ housing transaction numbers, whilst the yellow arrows indicate the times of the general elections. It is clear to see that after the 1997, 2001 and 2005 elections, there was significant uplift in the number of households sold, whilst in 2010 and 2015, there was a slight drop in house transactions.

The next thing I did was to consider what happened to property prices. In the graph below, I have used that same 12-month average, housing transactions numbers (in red) and yellow arrows for the dates of the general elections but this time compared that to what happened to property values (pink line).

It is quite clear none of the general elections had any effect on the property values. Also, the timescales between the calling of the election and the date itself also means that any property buyer’s indecisiveness and indecision before the election will have less of an impact on the market.

So finally, what does this mean for the landlords of the 18% of privately rented households in Nuneaton? Well, as I have discussed in previous articles (and just as relevant for homeowners as well) property value growth in Nuneaton will be more restrained in the coming few years for reasons other than the general election. The growth of rents has taken a slight hit in the last few months as there has been a slight over supply of rental property in Nuneaton, making it imperative that Nuneaton landlords are realistic with their market rents (I’ve seen properties on the market with asking prices inflated by 20%!!). But, in the long term, as the younger generation still choose to rent rather than buy … the prospects, even with the changes in taxation, mean investing in buy-to-let still looks a good bet.

If you see a Nuneaton property you think will make a good buy-to-let and need a second opinion, send me the Rightmove or Zoopla link. As my readers will attest, I don’t charge for an opinion.

Is your buy to let in Nuneaton being Sub-let??


Investing in a buy to let property is not an easy process – it’s expensive, and it can feel like a real labour of love being a landlord in today’s market. So, what do you do when you find out your tenant has decided to turn landlord and sublets your property? Should you accept it, or are you within your rights to be unhappy about this? With subletting on the rise in our towns and cities, this isn’t something that can be ignored.
What is it?
As the cost of living is creeping up, people are getting more resourceful with how to save, and make, money.
One of the most popular ways to increase an income and minimise outgoings – especially in the UK’s pricey towns and cities – is for a tenant to sublet a property. The subtenant would be given a tenancy for part of the property, which is let to them by the named tenant, who is acting as the landlord of the property.

Why is it a problem?

Subletting can pose a problem with regards to you as a primary landlord’s mortgage of insurance conditions.
Additionally, research by the National Landlords Association (NLA) has revealed that almost 50% of tenants who sublet their property do so without their landlord’s consent. If you are not aware of who is living in your property, you can face numerous issues further down the line, for example you have no control over the sub-letters or their actions, but can be pursued should any anti-social behaviour, noise or nuisance notices arise.

What are the legal implications?

It is important to remember that your tenant needs your written permission before they are legally allowed to start subletting your property. In some cases, if you refuse the request and the sublet goes ahead you are permitted to start possession proceedings against your tenant for breaking the terms of their tenancy agreement and in some cases, social housing tenants can be prosecuted for unlawful subletting, which carries an unlimited fine and a potential prison sentence of up to two years.
It’s only legal to sublet part of the property, such as a spare room. If they let the entire property, their status as a secure tenant could be invalidated.
If they choose to sublet, your primary tenant would take on the role as landlord. This would mean that they would be responsible for vital legal checks, such as Right to Rent checks on all incoming tenants. If your tenant fails to undertake these checks, and the incoming tenant is not legally allowed to rent in the UK, the primary tenant could face an unlimited fine, or even a prison sentence.

How can I stop it happening?

One of the first things you should do is make sure that the tenancy agreement that you provide your tenants with includes a clause stating that subletting is only allowed with the landlord’s permission, which will not be unreasonably withheld.
It was made illegal in 2015 for tenancy agreements to completely ban subletting within a property, however by including a clause which enables you to consider every request, you can work with your tenant, whilst still protecting yourself, your investment, and your primary tenant from potential difficulties!

What do I do if my tenant goes ahead and does it anyway?

If your tenant is illegally subletting, chances are they will be being fairly clever about the process- as no one does it with the intention of getting caught!. Before you do anything, it’s important to establish whether they are subletting or not! And this does require a little detective work…
If there are multiple occupants in a property which has been marketed for sole occupancy, you would expect to see higher levels of wear, tear and damage – after all, there’ll be a higher level of footfall! You will know what you will expect to see in your property, and if you need too- refer back to the inventory you did at the start of the tenancy- so schedule a maintenance check and keep an eye open for tell-tale signs of another person in the property.
Without getting too Sherlock Holmes, pay attention to small details such as the number of toothbrushes in the bathroom, shoes by the door, and lived-in bedrooms in operation.
Finally, don’t underestimate the power of the curtain twitcher- and lets face it, most streets have them! A casual chat over the garden fence to neighbours to ask if they have noticed lots of different people coming and going from the property could shed some light on whether your single-person tenant has actually turned into small HMO!
Although time consuming, it may pay to sit and watch the property- particularly in the morning when people are leaving for work- just to see if you can catch the same ‘un- authorised’ person leaving the property consistently. This would also give you opportunity to approach them about your concerns.
If from your findings you find that there is evidence of someone else definitely living there, the time has come for an awkward conversation with your tenant. From a legal point of view, your tenant can have a friend or relative stay with them, and as long as they are not charging them rent this would not be considered subletting.
However, if your tenant admits to taking in a tenant of their own (or if you manage to speak to the subtenant who clarifies the situation) you are able to start possession proceedings against your tenant to evict them using a Section 21.
If your tenant has sublet the entire property, they have forfeited their tenancy status. This means that the tenancy ceases to be secure, flexible or introductory, and they have lost the protection of the law. In this instance, you are able to start the eviction processes by serving a ‘Notice to Quit.’

How do I evict the subtenant?

Once the tenant that you have a legal agreement with is no longer in residence at the property, the tenant who was subletting is considered a trespasser. You have no legal agreement with this tenant, and do not require a possession order to evict this tenant, although you can arrange one if you choose.
It is worth considering though that in many instances this person acted in good faith, and rented a property through your tenant in the belief that everything was ‘above board’. Taking time to speak with them where possible, and if you can, come to an agreement that makes the change as easy as possible for all parties will help ease the pressure on this innocent party!

If you are a victim of subletting, why not give us a call to see what we can do to help. If you want to keep your property but feel like the management of the property is getting you down, why not visit our website for more information on how we can help http://www.qthomes.co.uk/

ASK MEL- “Should I risk renting my Nuneaton property to people in receipt of housing benefits?”

Dear Mel,
I have a 3 bed terraced house near Nuneaton town centre and I am advertising it privately but I keep getting a lot of people in receipt of Housing Benefit showing interest. What are the risks when renting to people on benefits? Are there any positives? What information could you offer that might help me decide?
I look forward to your reply.
-Jenny

Hi Jenny,
This is a really great question and it’s certainly a question that, I’m sure, many landlords ask themselves when it comes to renting their Nuneaton properties. To follow are the answers to your questions…

“What are the risks to renting to people on benefits?”

Who controls the money?

If the tenant receives their housing benefit, they are responsible to pay you that money each month. This means they will need to be organised with money because they get paid every 4 weeks but, normally, their rent will fall on the same day each month so, they need to be able to budget / save their money for when the rent is due.

If you receive the Housing Benefit (HB) direct from the Council, this is better for your cash flow but can carry more risks e.g. if HB discover that your tenant has misrepresented a claim, they can stop the housing benefit and even ask you, as the landlord to pay back what you have received in rent because of the tenants’ deceit. However, if you find out that the tenant has misrepresented a claim and report them to HB then you are not liable to re-pay the rent but you are likely to stop receiving the HB for some time while the situation is resolved. So, you’d better hope there is no misrepresentations because you could be stung either way.

The tenants word is gospel

We’ve recently had a landlord ask us to manage his Nuneaton property after he had a bad experience with a tenant receiving HB. He had served her notice because she was not paying the full amount of rent each month (she was supposed to pay money as well as the HB to cover the rent) and, a few days later she informed the council that she had moved out of the property so, all payments to the landlord stopped. The tenant was in fact still living in the property and had no intention of moving out “until the bailiffs kick [her] out”. The landlord rang the council and informed them that the tenant was still living in the property but he was advised that, unless the tenant rings the council to tell them otherwise, there wasn’t anything they could do. The landlord eventually managed to get the tenant to admit (via text) that she was still living in the property, as well as getting written confirmation from the neighbours and the council said that they would carry out a visit to the property to establish who lived there. It’s a long story but, you get the jist of it!

Does the HB cover the rent?

If the housing benefit does not cover the full amount of rent, the tenant is liable to pay the rest. Can the tenant afford to do this? How can you be sure that they will top the rent up each month?

Are they paying a cash bond?

Some people in receipt of benefits who apply for private housing offer a ‘paper bond’ from the Council but, you should look into this more as there are a lot of the things the paper bond will not cover…
https://www.nuneatonandbedworth.gov.uk/downloads/file/616/bond_assistance_scheme_guidance_for_landlords

Do you have a back-up?

If you do decide to let your Nuneaton property to someone in receipt of HB, I would strongly recommend ensuring that they have a guarantor in place. It’s important to ensure the guarantor can afford the rent as well as getting all the relevant ID and proof of income from them.

Are you doing reference and credit checks?

Again, something I would strongly recommend. If credit checks reveal several debts (paid or unpaid), it gives some idea of how the applicant manages their money. On the other hand, credit checks could reveal good money management and be a re-assurance to you. It’s recommended that you get proof of current address as well as people often say that they live [d] with parents to avoid having a bad reference from a previous or existing landlord.
If you’re unsure about this process or want some more advice, please feel free to contact us on 02477 674 545

Will it affect your insurance?

It’s a good idea to check your Insurance Policy still covers you if your tenant is in receipt of benefits as some do not. Similarly, you should also check that you are not in breach of your buy-to-let mortgage.

Are there any positives?

The green deals that come and go with funding are often available for free or at a substantially reduced rate if you have tenants in receipt of benefits (but this can also apply to people who receive tax credits who work full or part time too).

If the HB covers the rent in full, and the tenant pays you on the same rent day each month, and the benefits don’t change, and they look after the property, and they have a cash bond, and a guarantor and it won’t affect your insurance or mortgage policy then, renting to people in receipt of benefits would be a positive (although very rare).
As a private landlord, I have had both good and bad experiences with tenants in receipt of benefits so I am very much in the middle. I do believe that more should be done to encourage landlords to rent to people in receipt of HB and support landlords in the event of rent arrears, misrepresented claims etc because, at the moment, regardless of the problem, the landlord usually bears the brunt and it’s usually very costly!

As you can see, the risks outweigh the positives quite heavily. However, if you’re organised, committed to ensuring you have back up in place and you have an applicant that is willing to tick all the relevant boxes (as listed above) then, there is no reason why you shouldn’t rent your property to a person/people in receipt of benefits.

If after reading this you’ve decided that having a tenant in receipt of HB isn’t the route you want to take, or you would like more advice, please feel free to drop me an email m.maycock@qthomes.co.uk or give me a call on 02477 674 545. I’m happy to offer some more advice and can even help find the right tenant for you.

Alternatively, why not check out how we can help you to manage your property or simply just find you the right tenant http://www.qthomes.co.uk/

Where will Nuneaton house prices be in the not so distant future?

rising house prices

I was having lunch the other day with a solicitor friend of mine who’s properties I manage, when the subject of property came up. She asked me my thoughts on the Nuneaton property market for the next five years. Property prices are both a British national obsession and a key driver of the British consumer economy.  So what will happen next in the property market? So here is what I told her, and now wish, my blog reading friends, to share with you.

 

Before I can predict what will happen over the next five years to Nuneaton house prices, firstly I need to look at what has happen over the last five years.  One of the key drivers of the housing market and property values is unemployment (or lack of it), as that drives confidence and wage growth – key factors to whether people buy their first house, existing homeowners move up the property ladder and even buy to let landlords have an appetite to continue purchasing buy to let property.

 

Nuneaton’s MP, Marcus Jones, has welcomed new figures showing that unemployment in Nuneaton has fallen by 54% over the last five years and wage growth continuing to out-pace inflation. There are now nearly 1,600 fewer people in Nuneaton claiming out of work benefits compared to 2010. The figures also showed that average pay growth is at 2.9 per cent – the fastest rise since 2002 – while inflation was only 0.1 per cent, meaning hardworking people in Nuneaton have more money in their pockets.

 

 

Many home occupiers have held back moving house over the past seven to eight years following the Credit Crunch but with the outlook more optimistic, I expect at least some to seize the opportunity to move home, releasing pent up demand as well as putting more stock onto the market. With a more stable economy in the Town, this will, I believe, drive a slow but clearly defined five year wave of activity in home sales and continued house price growth in Nuneaton.

 

The price of the average UK home will rise by 50% in the next 10 years, say the National Association of Estate Agents and the Association of Residential Letting Agents. The average cost of renting a home in the UK is forecast to rise too, though by only 27%, taking the average rent from £134 a week to £171.

 

 

50% might sound optimistic to some, but according to zoopla, values have risen by 13.5% over the past 5 years. However, it wouldn’t be correct not to mention those potential negative issues as I do have some slight concerns about the future of Nuneaton housing market.  The number of properties for sale in Nuneaton is lower than it was five years ago, restricting choice for buyers (yet the other side of the coin is that that keeps prices higher). Interest rates were being predicted to rise around Easter 2016, but now I think it will be nearer Christmas 2016 and finally the new buy to let taxation rules which are being introduced between 2017 and 2021 (although choosing the right sort of property / portfolio mix in Nuneaton will, I believe, lessen those issues with the next taxation rules).

 

I am telling the landlords I speak to, that with interest rates at their current level 0.5%, the cash in your Building Society Passbook is going to grow so slowly that it might as well be kept under their bed. Property prices, by contrast, have rocketed over the years, even after the property crashes, far outstripping bank accounts and inflation.

 

So my final thought …  property is a long term investment, it has its’ up and downs, but it has always outperformed, in the long term, most investments. Those in their 40’s and 50’s in Nuneaton would be mad not to include property in their long term financial calculations. Just make sure you buy the right property, at the price in the right location. One source of information on such matters would be the Nuneaton Property Blog … www.Nuneatonpropertyblog.com

If you’re looking to invest in Nuneaton and want to ensure you have the best tenant possible, or you are thinking of passing on the management of your Nuneaton investment, feel free to visit our website and see how we can help http://www.qthomes.co.uk/

Fancy this Nuneaton BTL with a 6.6% yield?

Wow, I have come across a property this morning that in my opinion is too good not to share with all you lovely property investors.

A 2 bedroom Terraced house on Lister Street, Nuneaton. On the market with Mark Webster at £104,950! I have been to this property myself about 6 months ago and was quite excited to see that it had been put on the market as I do think location combined with price and general condition that it would in fact have potential to be a good investment.

It has to reception rooms, a modern fitted kitchen, 2 good sized bedrooms and a modern family bathroom upstairs. The garden is a decent size albeit needing a little tlc, and with a fresh lick of paint throughout it would be good to go! If you were to offer around the £100k mark and it was accepted, you could ask for rents of at least £550PCM with potential of slightly more depending on the work you put into it initially, but these figures would give you an annual yield of 6.6%.

PROPERTY PARTICULARS

The property is a 5 minute walk from Nuneaton town centre, and is located close to an industrial estate where we know of several companies looking for rental properties in the area for their employees (often they are willing to pay slightly higher rents also). The house is also in the catchment area for the desired primary and secondary schools which are close by which would be appealing to families as well as a professional working couple.

I would strongly suggest a viewing of the property before it gets snapped up, and if you would be interested in using either our tenant find or fully managed service please do get in touch, we’d be more than happy to help you out. Feel free to call us on 02477 674545.

5, no, LOTS of Reasons why you should NOT let your property in Nuneaton using Gumtree

Honestly I could write a book about this. Time and time again through my agency career I would have landlords calling me, desperate for advice after they’ve placed a “lovely” tenant in their property using a free (or low costs) DIY advertising website. The tenant presented themselves as honest, open, and above all very capable of paying the rent.

But the truth is a different matter. They got into the property by deception, and ended up costing these landlords thousands of pounds in damages, unpaid rent, and above all stress. These landlords had to cover the mortgage whilst funding the legal battle. One made very difficult because they weren’t aware of all the legislation surrounding lettings. This could prejudice their position in court. Didn’t serve the Prescribed Information? Didn’t register the deposit within 30 days? That means the tenant could actually sue YOU for 3 times the deposit amount! And there’s more…

It has been said that some 30% of the PRS is made up of accidental landlords (Source: Landlordnews.co.uk). Here lies the problem. As an accidental, or amateur (not a bad thing!) landlord, it is unlikely that they invest the time to make themselves aware of all the legislation surrounding lettings. There is a lot, but as the saying goes “you don’t know what you don’t know,” so most are blissfully unaware – until it goes wrong, and they can do with disastrous consequences!

If you saw the other weeks episode of “Nightmare Tenants, Slum Landlords” on Channel 5 then you will know more. Paul Shamplina, Director of Landlord Action advocates against using such sites. I say there is a time and a place for DIY platforms. After all, there are certainly elements of the process you can do yourself – IF you are able to dedicate the time to it. After all, opening a door and doing a viewing can cost very little time and effort if you are local. If you need to travel from work to the property in Nuneaton and then back to your home in Coventry after work it could become a very tiring process, especially factoring in the inevitable no-shows.

There are certain elements of the process, and depending on which you can do, you can choose a service to suit you.

Presentation
This is the first hurdle where most people fail. Miserably. The average rent in Nuneaton is £650pcm, or £7,800 per annum. I would suspect that if you are looking to part with just under £8,000 then you would expect to see something immaculately presented and shiny. Like a car. Ever seen a dirty car in a showroom? No? I wonder why. Let’s compare and contrast with letting your property. iPhone photos will not always cut it. Unmade beds? No. In order to achieve the best result (best price in the shortest space of time with the most enquiries, viewings and offers to choose from) you want to present the property to the best of your ability. Present well, clean, and use a professional photographer. I can highly recommend a few that are reasonable and will do all the digital editing required. An investment of £100 goes a long way, if you achieve £2 per week more rent then it’s paid for itself. And remember the photos last for a good number of years, you don’t need to redo them.

Marketing
Where are you likely to attract a professional tenant for your £8,000 a year property? Not in a free advertising site like Gumtree that is impossible to navigate, sort any meaningful way and so forth. You want to get on Rightmove and/or Zoopla. These two portals are where 95% of home movers look. That’s where you want your property. Any good quality agent will advertise your property on one if not both of these. Beware of agents that are NOT on one of these in favour of a third platform called Onthemarket.com. In essence they are trying to compete with Rightmove and Zoopla but failing miserably and they don’t want to admit it. Tenants on the whole don’t look here, so advertise elsewhere.

Price
This is key. Whatever you may think, it is unlikely that your property is the best property in Nuneaton. Harsh but true, there will be better properties out there. A good look on Rightmove and Zoopla will give you an idea of prices. Talk to a local agent that you respect – do they have good quality properties? Well-presented? Good photos? They probably know what they are doing, speak to them. And price competitively, you want it to let after all. Time is also key. If you start advertising 60 days in advance and you think “well, I’ll start high because I have time” then you may miss out on those excellent tenants who plan ahead. A lot of landlords I know tend to drop their asking price with 3 weeks left on the tenancy because they know that is roughly when it really comes down to decision time for most. And indeed my experience tells me that tenants tend to make their decision 2-4 weeks in advance. I have, however, let properties long in advance but they tend to be 1bed apartments where the more organised of the couple (tends to be the female) would like to plan ahead. So they price ambitiously for 4 weeks to have satisfied themselves that they have “tried to get a better price.” But what if they’ve missed out on an organised tenant? After all, do you want someone who makes last-minute decisions? I personally would rather have someone that is organised.

Legals
Do you know about deposit registration? Tenancy agreements? (no, not the ones downloaded for free off the internet) Repairing obligations? Gas Safety Regulations? EPC regulations? Right to Rent checks? These are just some of the things that you need to do when placing a tenant. If you don’t, you could find yourself in a spot of bother. When you serve a Section 21 notice (a notice to end the tenancy) you will find that the notice is INVALID if you haven’t sorted all the aforementioned! Having a professional estate agency take care of this is invaluable. A few % commission takes care of all the viewings, paperwork, legwork and numerous phone calls that comes with letting a property.

Viewings
Linking back to the beginning, time is money. If it takes you 2 hours to carry out a viewing (adding in travel) and you need to do an average of 15 viewings the 30 hours you spent to save some money becomes less valuable. Add in the legal paperwork, referencing, right to rent checks and so forth you are probably talking closer to 50 hours of your work. Say you earn £40,000 per annum. Divide by 52 weeks and 40 hours and you’re earning about £20/hr. 50 hours = £1000ish. I’d argue it’s worth paying a professional agent and to benefit from their time, expertise, knowledge and near guarantee of a better result.

So to summarise – free (or low cost DIY) advertising websites are fantastic for getting rid of an old desk or sofa, probably not the place to advertise for the professional tenant you want for your rental property. They are possibly professional scam artists. And they know who to target. Do you know how to avoid them? Do you have systems for referencing? Can you afford to have them know more than you, and take advantage? I certainly can’t. There are many great resources you can use to educate yourself, such as joining the RLA, and reading blogs and listening to podcasts, but unless you immerse yourself in it fully you are likely to miss things.

I’ve been in property in Nuneaton for nearly 15 years and I know what a minefield it can be. If you would like help and advice on letting your property in Nuneaton please feel free to give us a call on 02477 674545 or pop into our office on Bond Street and we would be more than happy to advise you. Alternatively, visit our website for moreinformation http://www.qthomes.co.uk/

Buy to Let investment in Nuneaton with a yield of 6.75%

Good Afternoon to you all!

I thought I would share this house that I came across today on Zoopla, in my opinion its what I like to call a ‘star buy’…let me tell you why!

Its a 3 bedroom semi-detached property located in the hilltop area of Nuneaton, close to the A444 for commuting, its a ten minute walk into town, and is ideal for families looking to get their children in to the schools in that area! Internally judging from the pictures there really isn’t anything that would need doing to the property in order to rent it out straight away. Its clean, modern and has the appeal of a driveway and a decent sized back garden.

The property is currently on the market with fosterlewis&co with an asking price of offers over £120,000. If you were to offer the £120,000 and it got accepted, you could then look at renting the property for around £675 PCM, this would give you an annual yield of 6.75% in your first year! As you would have read in a previous article, rents are set to rise around 20% in the next few years so with this in mind – receiving a rent of £810 PCM would then in fact give you an annual yield of 8.1%…nice figure right!

property particulars

Id recommend a viewing on the property ASAP as I’m sure we have all learnt the hard way…properties in Nuneaton don’t tend to be on the market long these days, especially not of this size and in this area! If you would like me to come with you to view this property or any other and offer my humble opinion, I would be delighted too! Please feel free to give us a call on 02477 674545 with any buy to let issues/queries you may have!

Nuneaton rents set to rise by 20% in the next 5 years!?

Recent research from the Royal Institute of Chartered Surveyors has revealed that rental rates in the UK are expected to increase by around 20% over the next five years.

Surprisingly, the rise is not expected to be as fast in the capital, with the research expecting to see only a 15% hike in the capital – good news for renters who are already stretched to meet high rental rates in one of the world’s priciest cities.

When we look at houses prices in Nuneaton in the last 5 years, they have increased by 28.17% with rental incomes increasing at a much slower rate, so to see this level of increase is great news for all of us buy to let investors!

One of the reasons we could be seeing such a significant jump is the ever-increasing level of demand being placed on the private rental sector. With property prices expected to increase 18% in the same timeframe, the shortage of available properties is increasing, with tenant demand outweighing the number of new properties being brought to market. This trend has been building for three years, and as more and more people turn away from buying, and look towards rental option as a long-term housing solution, it’s not a trend that the experts see changing. This increase of rental demand is very evident in Nuneaton, no sooner has a house been advertised for rent …its been snapped up by the first person to view! Avoiding void periods is one benefit, another being you can be more specific and selective with the tenant you want for your property! We have found that are we getting less and less DSS tenants applying for properties which could also be due to the huge drop in unemployment in Nuneaton.

Whilst the rise may be welcomed by landlords who are now facing heftier bills, taxes and more stringent legislation to abide by… it is bad news for tenants, with many experts predicting that the hike in prices will see tenants reliant on housing benefits forced out of the private rented sector. Even though, in my humble opinion, with the banning of application fees coming into play, and landlords inevitably having to take the hit in one way or another, rent increases will fairly cushion the blow making it fair for both parties. A third of respondents to the RICS research admitted that they believe that people on lower incomes are being pushed out of the market, with 29% blaming caps on housing benefits..

It’s not all bad news for tenants though. Over 50% of landlords said that they would be prepared to rent their property to households in receipt of housing benefit, or homeless people, if help was offered through central government to provide financial guarantees for deposits and rent…And quite rightly so! Landlords need as much reassurance as possible when it comes to guaranteeing rent these days.

If you would like to speak to us more about this, or any other buy-to-let related issues you may have, please feel free to give us a call on 02477 674545, we’ll be happy to hear from you. Alternatively, feel free to visit our website to see how we can help http://www.qthomes.co.uk/

Nuneaton Buy to let opportunity ready to let!

Good Afternoon to you all, i hope the wet weather isnt detering you from wanting to find that next ideal buy to let opportunity? it certainly isnt stopping me!

Whether you are a first time investor looking for a property which you can rent out straight away, or an investor looking to build on their existing protfolio, i think this property could be ideal!

Its a 3 bedroom end terrace house on Marston Lane, Atlleborough. It has a driveway for 2 cars, good sized back garden, conservatory and best of all its ready to be rented out upon completion. We have recently marketed several properties in this area- maple park and attleborough- and within 24 hours of them being advertised, viewings and applications have been submitted. Neddless to say, this is a highly sort after area for renters. Not only is it in the catchment for the local primary and secondary schools, but it is ideally situated for commuters with motorway links to the M6 and M69 being very close by.

The property is on the market with Up Estates with an asking price of £140,000. I think offers in the region of £135,000 would be highly favoured but be warned, i cant imagine this property will be on the market for long so viewings are reccomended asap. Rental wise- asking between £675 to £695 would definitely be achievable, and this in turn would give you an annual yield of 6.18% with the higher rental income. As i always point out, its important to look at the bigger picture also and what your investment property will be worth in a few years time, and the fact these houses rarely come on the market in this area, combined with the high demand for the area, can only mean this would be a sound investment.

property particulars

If you would like me to come with you on the viewing of this or any other property to give my opinion on its investment potential, please feel free to get in touch on 02477 674545

The drop in unemployment in Nuneaton, and how it affects the Nuneaton property market.

It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, almost 9 months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is ‘Yes’ and ‘No’.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Nuneaton are 0.4% down month on month so is this the time to panic and run for the hills?
Doom and Gloom then? Well, let me consider the other side of the coin…

Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Nuneaton property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Nuneaton property values dropped by an eye watering 1.62% in September 2012 and 0.61% in November 2014 – and no one batted an eyelid then.

You see, property values in Nuneaton are still 8.58% higher than a year ago, meaning the average value of a Nuneaton property today is £158,621. Even the shares of those new home builders Barratt have increased by 43.3% since early July and Taylor Wimpey’s have increased by 37.3%. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years – but only slightly.

The Nuneaton housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Nuneaton and Bedworth Borough Council area stands at 1,384 people (1.1%), which is a huge drop of 26% from this time last year.

However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires, then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue for borrowers as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!

Forget Brexit and yes, inflation will be a thorn in the side – but the greatest risk to the Nuneaton property market is the insufficient supply of properties keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t!