Wellingborough property price rises set to be more restrained in 2017 due to Brexit

While Brexit has not yet had a sizeable impact on the Wellingborough housing market, my analysis is pointing to the fact that the economic viewpoint still remains uncertain and Wellingborough property price growth is likely to be more subdued in 2017 - although that isn’t a bad thing so let me explain.

Since the summer, apart from a little wobble of uncertainty a few weeks after the Referendum vote, property values (and the economy), on the whole has outperformed what most people were anticipating. In fact, when I looked at the property prices for our Wellingborough Borough Council area, these were the results...

The UK property market continues to perform robustly (because we can’t just look at Wellingborough as if in its own little bubble) with annual price growth set to end this year at 6.91% and most East Midlands region property market at 7.52%.

Talking to fellow agents in London, the significant tidal wave of growth seen from 2013 through to 2015 in the capital has subdued over the last six months. However, as that central London house price wave has started to ripple out, agents are starting to see stronger property growth values in East Anglia and the South East regions outside of London, than what is being seen within the M25. So, fellow Wellingborough landlords and homeowners, is this the time to get your surfboards ready for the London wave?

Well, we in Wellingborough haven’t really been affected by what is happening in the central London property mega bubble (i.e. Kensington, Chelsea, Marylebone, Mayfair etc.). The property market locally is more driven by sentiment, especially the ‘C’ word ... confidence. The main forces for a weaker Wellingborough Property market relate to economic uncertainty surrounding the Brexit process, which I believe will impact unhelpfully on consumer confidence in the run up to and just after the serving of the Section 50 Notice by the end of Q1 2017.

In addition, the influence of reforms to the taxation of landlords is expected to result in a reduced demand from buy to let landlords, which will limit upward pressure on property values. However, on the other side of the coin, demand from tenants has been strong, but this has been counterbalanced by a strong supply of rental properties. In my opinion, there is a slight risk of rents not growing as much in 2017 as they have in 2016, but by 2018 they will rise again to counteract Philip Hammond’s changes to tenant fees.

The broader Wellingborough rental market looks relatively positive with modest rental growth expected and rents might rise further if landlords begin to sell properties in an effort to offset to the impact of tax rises.

So what do I predict will happen to the Wellingborough housing market in 2017? In Wellingborough, I believe property values are expected to rise by 1.5% in 2017, compared to a rise of 13.3% this year, then picking up again with a rise of 2.4% in 2018, 3.1% in 2019, 4.6% 2020 and 6.1% in 2021.

But these predictions do not take into account any effect of a possible snap General Election or further referendum on ratifying any Brexit deal (if that comes to pass in the future).

Wellingborough OAP’s sitting on £925.8m of Property

Wellingborough people aged over 65 currently hold more housing wealth in their homes than the annual GDP of the whole of the Shetland Isles… and this is a problem for everyone in Wellingborough!

Many retiree’s want to move but cannot, as there is a shortage of such homes for mature people to downsize into.  Due to the shortage, bungalows command a 10% to 20% premium per square foot over houses of the same size with stairs. To add to the woes, in 2014, just 1% of new builds in the UK were bungalows, according to the National House Building Council - down from 7% in 1996.

My research has found that there are 4,565 households in Wellingborough owned outright (i.e. no mortgage) by over 65 year olds.  Taking into account the average value of a property in Wellingborough, this means £925.8 million of equity is locked up in these Wellingborough homes, compared to the GDP of the whole of the Shetland Isles being £524 million of GDP.

A recent survey by YouGov, found that 36% of people aged over 65 in the UK are looking to downsize into a smaller home.  However, the Government seems to focus all its attention on first-time buyers with strategies such as Starter Homes to ensure the youngsters of the UK don’t become permanent members of ‘Generation Rent’.  Conversely, this overlooks the chronic under-supply of appropriate retirement housing essential to the needs of the Wellingborough’s rapidly ageing population. Regrettably, the Wellingborough’s housing stock is woefully unprepared for this demographic shift to the 'stretched middle age’, and this has created a new 'Generation Trapped’ dilemma where older people cannot move.

Some OAP’s who are finding it difficult to live on their own, are unable to leave their bungalow because of a lack of sheltered housing and ‘affordable’ care home places.  So, older retirees can't leave bungalows, younger retirees can't buy bungalows and younger people can't buy family houses.

Interestingly, adding insult to injury, the problem will only get worse, as in the 50 year old to 64 year old homeownership age range there are an additional 3,194 Wellingborough households that are mortgage free and a further 3,465 Wellingborough households who will be completing their mortgage responsibility.  With Government projections showing the proportion of over 65’s will rise by over a third from the current 17.7% to 24.3% of the population in the next 20 years ... this can only add greater pressure to the Wellingborough Property market.

House prices have rocketed over the last 40 years because the supply of property has not kept up with demand. With migration, people living longer and high divorce rates (meaning one family becomes two) we need, as a Country, 240,000 properties to be built a year to just stand still.  In the 1990’s and early 2000’s, the Country was building on average 180,000 to 190,000 households a year, but since the Credit Crunch (2009), that has only been between 130,000 and 145,000 households a year.

The solution …. release more land for starter homes, bungalows and sheltered accommodation because land prices are killing the housing market as the large firms dominating the construction industry are more likely to focus on traditional houses and apartments.  My opinion – until the Government change the planning rules and allow more land to be built on – Bungalows could be a decent bet for future investment as they continue to attract ever growing premiums?

Great Buy to Let Investment in Wellingborough

Good Morning Potential Investors! Today I have found a 3 bedroom terrace property, perfect for a family let. The property comprises of 2 double and a single bedrooms, bathroom and W.C, lounge and kitchen. Located on the popular Queensway Estate, the property has good links to the town centre, motorways and local industrial estates. This is currently being marketed for £115,000.00 and it could have a potential rental yield of 6.26%, if you would like to arrange a viewing before Christmas this property is currently being marketed by Marshall & Cross, please see below for more details:

http://www.rightmove.co.uk/property-for-sale/property-63665618.html

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you too, or to ask about our thoughts on your own investment choices, call us on 01933 384616 or pop in and speak to us in person at our office: 117 Mill Road, Wellingborough, NN8 1PH, or alternatively you can always e-mail me on info@express-salesandlettings.co.uk

Wellingborough 2 Bed Terrace Property - Perfect Buy to Let Investment

Good Afternoon All! To start this week I have found a 2 bedroom terrace property, with a potential yield of 5.57% and is currently on the market for £140,000.00. This property is in a good location for local transport links and is only 15 minutes walk away from the town centre. If you still have time to view before Christmas I would definitely get your appointment booked! The property is currently being marketed by Marshall & Cross. Here are some further details:

http://www.zoopla.co.uk/for-sale/details/42094023?search_identifier=9ab6233faeb8e2460b406a7178dfdaf9#3y7hZS0AWBAwCeqR.97

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you too, or to ask about our thoughts on your own investment choices, call us on 01933 384616 or pop in and speak to us in person at our office: 117 Mill Road, Wellingborough, NN8 1PH, or alternatively you can always e-mail me on info@express-salesandlettings.co.uk

Wellingborough Property Market – Q4 Update

Well, hasn’t 2016 been eventful. The ups and downs of Brexit, the Queen’s 90^th, Andy Murray winning Wimbledon, Trump, Bake Off to Channel 4 and something close to the hearts of every buy to let landlord and homeowner in Wellingborough ... the Wellingborough property market.

So, let’s look at the headlines for the Wellingborough property market...

In the last month, Wellingborough property values rose by 3.88%, leaving them, year on year 15.3% higher, whilst interestingly, Wellingborough asking prices are down 1.3% month on month. All three statistics go to show the Wellingborough property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June. Irrespective of all the issues, the average value of a Wellingborough home now stands at £202,400.

Generally, Wellingborough asking prices continue to hold up well, as asking prices are 4.7% higher year on year. At this time of year, asking prices tend to drop on the run up to Christmas and locally, they have dropped by 1.3% this month (November 2016), although this compares well with last year’s drop in Wellingborough asking prices, as we saw asking prices drop by 0.6% in November 2015.

Now it’s true to say, after chatting with fellow property professionals in Wellingborough, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.

Looking at the figures for the UK (as we can’t just look at Wellingborough in isolation), property values are generally rising slower than a few years ago, but on a positive note, there's still growth across the UK. You see, slowing property value growth isn't solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.

On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.

 So, what will happen in 2017 in the Wellingborough property market?

Some say until we know what type of exit the UK will make from the EU it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Wellingborough) housing market as a whole. As I have mentioned time and time again over the last few months, the biggest issue is demand outstripping supply when it comes to the number of households required to house us all. Wellingborough has an ever-growing population: with immigration (we still have at least two years of free movement from EU members into the UK), people living longer and the fact we need thousands of additional households as the country has nearly 115,000 divorces a year (where one household becomes two households).  These are interesting times ahead!  

2 Bed Flat in Wellingborough - Great Investment Opportunity

Hi All! For my last property post of the week, I have found you a great investment opportunity within the sought after Gleneagles area of Wellingborough. This 2 bedroom flat is on the market for £117,500.00 and has an estimated yield of 6.64%! With no upward purchase on the chain this could be a Christmas Gift come early! The property is currently being marketed by Hawksbys and I would recommend booking your viewing asap, please see below for more details:

                        http://www.rightmove.co.uk/property-for-sale/property-62465765.html

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you too, or to ask about our thoughts on your own investment choices, call us on 01933 384616 or pop in and speak to us in person at our office: 117 Mill Road, Wellingborough, NN8 1PH, or alternatively you can always e-mail me on info@express-salesandlettings.co.uk

Excellent 3 bedroom Family Property in Wellingborough

Good Morning Landlords! For my mid week update I have found a lovely 3 bedroom family home. I think this would be a perfect but to let investment, the property is in a good locality to the town centre and local transport links. The estimated yield for this property is coming out  at 4.75%! This property is currently being marketed by William H Brown, please see below for more details: 

http://www.rightmove.co.uk/property-for-sale/property-56814085.html

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you too, or to ask about our thoughts on your own investment choices, call us on 01933 384616 or pop in and speak to us in person at our office: 117 Mill Road, Wellingborough, NN8 1PH, or alternatively you can always e-mail me on info@express-salesandlettings.co.uk

Great 3 bedroom Investment Opportunity in Wellingborough

  

Morning Landlords! As Christmas is approaching I have found you an early gift in the shape of this great 'buy to let' investment opportunity in Wellingborough. This lovely 3 bedroom end terrace has excellent views and is in a good location for the town centre and local transport links and with an estimated yield of 5.25% I think this one is definitely worth a viewing. The property is currently being marketed by Hawksbys. Here are some more details:

http://www.rightmove.co.uk/property-for-sale/property-63444437.html

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you too, or to ask about our thoughts on your own investment choices, call us on 01933 384616 or pop in and speak to us in person at our office: 117 Mill Road, Wellingborough, NN8 1PH, or alternatively you can always e-mail me on info@express-salesandlettings.co.uk

Wellingborough Semi Detached House Prices rise by 333% in 20 years

Wellingborough Semi Detached House Prices rise by 333% in 20 years

The semi-detached house with its bay windows and net curtains has long been ridiculed as an emblem of safe, lacklustre and desperately uncool suburban life; the homes of the likes of Hyacinth Bucket in Keeping up Appearances and more latterly Alan Partridge – but they could have the last laugh - having enjoyed one of the highest price growths of any property type in Wellingborough, up by an average 333% increase in the last twenty years.

The semi can now laugh in the face of its posher detached counterpart, which saw a rise of only 243% in the same 20-year period. Looking at smaller properties, flats/apartments rose 341%, whilst terraced houses rose by 319% (although they were starting from a lower base and demand from buy to let landlords has had a big part in driving the values on that type of house (i.e. the price a buy to let landlord is prepared to pay is driven by the rent the landlord can achieve).

In 1996 the average value of a Wellingborough semi stood at £37,200,

today it stands at £160,800

Such is the attractiveness of semis, which are cheaper than detached houses but have most of the same benefits for families. Semi-detached houses were built in their hundreds of thousands by the Victorians and Edwardians between the wars and through to the present day. Interestingly in the late 19^th Century and early 20^th century – they often weren’t referred to as semi-detached – but as villas!

So whilst Europeans live on top of each other in apartments us British chose, in the late Victorian and early Edwardian times, suburban comfort, being near … but not too near, the neighbours! I once heard someone say the semi-detached house was a peculiar crossbreed that doesn’t stand on its own — it is inseparable from its neighbour — yet somehow still embodies a dream of suburban independence.

Nearly one in three houses in Wellingborough is a semi-detached house

There are 6,384 semi-detached properties in Wellingborough and they represent 30.81% of all the households in Wellingborough. Wellingborough has such a mix of semi-detached properties with the older classic bay fronted semis to more modern ones built in the last couple of decades. Especially with the older ones, the semi offered a hall to provided separation between the reception rooms and privacy for their occupants. Also the downstairs offered larger rooms to accommodate dining tables, whilst upstairs, bedrooms were smaller, yet cosy.

However, probably the most overlooked aspect of popularity for semis is the garden. The front garden, designed to separate the house from the world, and the back garden designed for private relaxation. The semi in the suburbs was relaxing, well presented, plumbed and enhanced by a garden so that when a window was opened the air had a chance of being genuinely fresh… and it’s for all those reasons why 176 semi-detached houses have been sold in Wellingborough in the last 12 months alone.  Still as popular today as they were with the Victorians all those years ago – some things just stand the test of time!

Private Renting set to grow by 1,300 Wellingborough households by 2025

I was having a most interesting chat the other day with a Wellingborough landlord when we were looking at a property. As I am sure you are aware, I am always happy to cast my eye over any potential buy to let purchase in Wellingborough, be that you emailing me a Rightmove link, a brochure in the post or even treading the carpet and seeing it together. I don't charge for that, and you don't even need to be a client of mine. We got talking about the Wellingborough Property Market and this landlord brought up the subject of a report he had read from the Royal Institution of Chartered Surveyors (RICS) and PricewaterhouseCoopers (PwC) that stated almost 1.8m new rental homes are needed by 2025 to keep up with current demand from tenants. He wanted to know what this meant for Wellingborough.

Well my blog reading friends, some commentators said last Winter that buy to let was about to die, what with the new stamp duty changes and how mortgage tax relief will be calculated. Others even said 500,000 rental properties would flood the market nationally in the 12 months after the new Stamp Duty rules came into force on the 1st April 2016 as landlords left the rental market. Well, all I can say is, I wish all the landlords of those half a million properties would hurry up and put them on the market – because I have plenty of other potential landlords wanting to buy them!

Back to the matter in hand.. if the RICS and PwC are indeed correct, what does this mean for Wellingborough? The fact is, as a country, we are facing a precarious rental shortage and need to get Wellingborough building in a way that benefits a cross-section of Wellingborough society, not just the fortunate few. I call on the Prime Minister to drop the higher stamp duty tax on buy to let purchases to ease the pressure on the rental market.

Of the 20,700 households in Wellingborough, currently 7,600 tenants live in 3,100 private rented properties. If we apportion those 1.8m households equally around the Country, that means in nine years’ time, the number of rental properties in Wellingborough needs to rise by 1,300 (i.e. 42.8%) .. taking the total number of rented properties in the city to 4,400.

That means Wellingborough landlords need to buy around 150 properties a year between now and 2025 to meet that demand – because according to my calculations, an additional 3,200 people will want to live in all those 'additional' Wellingborough rental properties – so why is the government penalising landlords?

Thankfully the new housing minister Gavin Barwell detached Teresa May's new administration from the Cameron/Osborne laser-like focus of just home ownership to solve our housing issues, saying "we need to build more homes for every single type of person needing a home and not focus on one single tenure". The private rented sector became a stooge under David Cameron's watch and still, with increasingly unaffordable Wellingborough house prices, the majority of new Wellingborough households will be relying on the rental sector in the future to house them. I can only say Westminster must put in place the measures that will allow the rental sector to flourish. Any restrictions on the supply of rental property will push up rents (bad news for tenants), thus side-lining those members of Wellingborough society who are already struggling. Let's hope this new Government continues to see the contribution landlords give to the country as a whole.