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

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

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

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

Stockingford, Nuneaton- Watch this space!

Do you have a property in the Stockingford /Grove Farm area? Are you thinking of selling …or maybe in 2 minds as to whether to sell or rent? Well, hopefully reading this will help you decide.

Many months ago I wrote an article on plans for a new train station to be built in Stockingford, in fact there used to be one where the Aldi is now (many moons ago).

The plan is to have the station up and running by 2023 and will be on the Cross Country route to Birmingham with one train running per hour initially.

Cllr Philip Johnson, chairman of the communities overview and scrutiny committee said: “A new station in west Nuneaton will have a really positive impact on that part of the town.
“It would increase connectivity by providing access to important destinations such as Birmingham, Coventry and further afield which is essential for ongoing development of the local economy.”

It is hoped that another station in the area would significantly ease road congestion in the area, resulting in an estimated saving of 520,000 road vehicle kilometres a year by 2023, rising to 1.5m km a year by 2029 and with all the new builds popping up so fast this will hopefully be a huge relief on congestion in the town.

So, going back to your property in this area. My recommendation, to anyone who is looking to move but doesn’t necessarily need to sell their current home to do so, is to keep it!

Keep it and rent it out!

Many people have a misconception of this part of town but I can put my hand on my heart and reassure you that rents in this area are just as achievable as any other part of town, and there are ample tenants looking to rent in this area too!

Similarly if you are an investor, I would strongly suggest investing here NOW before everyone clocks onto the fact that in a few years’ time this is going to be a hot spot area for commuters to live in, from both near (Birmingham etc) and far (London).

If you would like to speak to us about investing in Nuneaton, or you have a property that you would like to rent out, we are currently running a summer offer whereby if you sign up by 7th September 2018 we will fully manage your property for 10% a month including VAT with no initial set up fee to you!

If it goes ahead, the new station, which could open as early as 2023, would be on the CrossCountry route to Birmingham, with one train running per hour initially. Exciting times ahead folks! Don’t miss out.

For any further information, please fee free to get in touch with Melissa or I on 02477 674545