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Wellingborough’s ‘Generation Trapped’ and the £2.21bn legacy

Last week, I wrote an article on the plight of the Wellingborough 20 something’s often referred to by the press as ‘Generation Rent’. Attitudes to renting have certainly changed over the last twenty years and as my analysis suggested, this change is likely to be permanent. In the article, whilst a minority of this Generation Rent feel trapped, the majority don’t – making renting a choice not a predicament. The Royal Institution of Chartered Surveyors (RICS) predicted that the private rental sector is likely to grow substantially by 1.8m households across the UK in the next 8 years, with demand for rental property unlikely to slow and newly formed households continuing to choose the rental market as opposed to buying.

However, my real concern for Wellingborough homeowners and Wellingborough landlords alike, as I discussed a couple of months ago, is our mature members of the population of Wellingborough. In that previous article, I stated that the current OAP’s (65+ yrs in age) in Wellingborough were sitting on £898.8m of residential property ... however, I didn’t talk in depth about the ‘Baby Boomers’, the 50yr to 64yr old Wellingborough people and what their properties are worth – and more importantly, how the current state of affairs could be holding back those younger Generation Renters.

In Wellingborough, there are 3,465 households whose owners are aged between 50yrs and 64yrs and about to pay their mortgage off. That property is worth, in today’s prices, £682.2m. There are an additional 3,194 mortgage free Wellingborough households, owned by 50yr to 64yr olds, worth £628.9m in today’s prices, meaning...

Wellingborough Baby Boomers and Wellingborough OAP’s are sitting

on £2.21bn worth of Wellingborough Property

These Wellingborough Baby Boomers and OAP’s are sitting on 11,224 Wellingborough properties and many of them feel trapped in their homes, and hence I have dubbed them ‘Generation Trapped’.

Recently, the English Housing Survey stated 49% of these properties owned by the Generation Trapped, as I have dubbed them, are ‘under-occupied’ (under-occupied classed as having at least two bedrooms more than needed). These houses could be better utilised by younger families, but research carried out by the Prudential suggest in Britain it’s estimated that only one in ten older people downsize while in the USA for example one in five do so.

The growing numbers of older homeowners who want to downsize their home are often put off by the difficulties of moving. The charity United for all Ages, suggested recently many are put off by the lack of housing options, 19% by the hassle and cost of moving, 14% by having to declutter their possessions and 14% by family reasons such as staying close to children and grandchildren.

Helping mature Wellingborough (and the Country) homeowners to downsize at the right time will also enable younger Wellingborough people to find the homes they need – meaning every generation wins, both young and old. However, to ensure downsizing works, as a Country, we need more choices for these ‘last time buyers’.

Theresa May and Philip Hammond can do their part and consider stamp duty tax breaks for downsizers, our local Council in Wellingborough and the Planning Dept. should play their part, as should landlords and property investors to ensure Wellingborough’s ‘Generation Trapped’ can find suitable property locally, close to friends, family and facilities.

Excellent 2 Bed Investment Opportunity in Wellingborough

Good Morning Potential Landlords! I have found an excellent 2 bedroom apartment to brighten up this wet and miserable morning for you. I think this is an ideal investment property, the flat is located within close proximity of local shops, amenities and transport links and with an asking price of £99,995.00 it has a potential yield of 7.5%! This property is currently on the market with Taylors of Wellingborough, please see below for more details:

Lodge Court, York Road

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

‘Generation Rent (Forever)’ – 2,911 Wellingborough Tenants have no intention of ever buying a property to call home

The good old days of the 1970’s and 1980’s eh … with such highlights lowlights as 24% inflation, 17% interest rates, 3 day working week, 13% unemployment, power cuts ... those were the days (not)… but at least people could afford to buy their own home. So why aren’t the 20 and 30 something’s buying in the same numbers as they were 30 or 40 years ago?

Many people blame the credit crunch and global recession of 2008, which had an enormous impact on the Wellingborough (and UK) housing market. Predominantly, the 20 something first-time buyers who, confronting a problematic mortgage market, the perceived need for big deposits, reduced job security and declining disposable income, discovered it challenging to assemble the monetary means to get on to the Wellingborough property ladder.

However, I would say there has been something else at play other than the issue of raising a deposit - having sufficient income and rising property prices in Wellingborough. Whilst these are important factors and barriers to homeownership, I also believe there has been a generational change in attitudes towards home ownership in Wellingborough (and in fact the rest of the Country).

Back in 2011, the Halifax did a survey of thousands of tenants and 19% of tenants said they had no plans to buy a home for themselves. A recent, almost identical survey of tenants, carried out by The Deposit Protection Service revealed, in late 2016, that figure had risen to 38.4%, with many no-longer equating home ownership to success and believing renting to be better suited to their lifestyle.

You see, I believe renting is a fundamental part of the housing sector, and a meaningful proportion of the younger adult members of the Wellingborough population choose to be tenants as it better suits their plans and lifestyle. Local Government in Wellingborough (including the planners – especially the planners), land owners and landlords need an adaptable Wellingborough residential property sector that allows the diverse choices of these Wellingborough 20 and 30 year olds to be met.

This means, if we applied the same percentages to the current 7,582 Wellingborough tenants in their 3,140 private rental properties, 2,911 tenants have no plans to ever buy a property – good news for the landlords of those 1,206 properties. Interestingly, in the same report, just under two thirds (62%) of tenants said they didn’t expect to buy within the next year.

.. but does that mean the other third will be buying in Wellingborough in the next 12 months?

Some will, but most won’t … in fact, the Royal Institution of Chartered Surveyors (RICS) predicts that, by 2025, that the number of people renting will increase, not drop. Yes, many tenants might hope to buy but the reality is different for the reasons set out above.  The RICS predicts the number of tenants looking to rent will increase by 1.8 million households by 2025, as rising house prices continue to make home ownership increasingly unaffordable for younger generations.  So, if we applied this rise to Wellingborough, we will in fact need an additional 1,346 private rental properties over the next eight years (or 168 a year) … meaning the number of private rented properties in Wellingborough is projected to rise to an eye watering 4,486 households.

Wellingborough First Time Buyers borrow £58.3m in the last 12 months

Starting with the bigger picture, over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56bn, so it can be seen the number of people moving house has dropped by over a third over the last decade.

Whether you are a landlord, homeowner or tenant, it’s always important to keep an eye on the Wellingborough property market, not just from your point of view, but also from every player’s point of view. Over the last 12 months, 1,214 properties have sold (and completed) in Wellingborough, worth £227.1m. Interestingly the number of properties changing hands in Wellingborough has also dropped when compared to a decade ago.

It might surprise you that first time buyers in 2017 will benefit from a slight decline in Wellingborough buy-to-let investors.

Those looking to buy a home in the spring and summer of 2017 will face a far less competitive Wellingborough property market than the same time of year in 2016, when the urgency to beat the buy-to-let stamp duty hike was in full swing.  

Many landlords brought forward their purchases to beat the tax, and since then, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures, this is what UK lenders have lent on buy-to-let properties versus first time buyers over the last 12 months  …

When looking at the figures for Wellingborough itself, first time buyers have borrowed more than £58.3m in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Wellingborough economy. Those 20 and 30 something’s who are considering being first time buyers in 2017 will find that the number of properties on the market has never been as good as it has for quite a while, meaning you have more choice of properties and less competition from so many buy-to-let landlords than a year ago.

Rightmove announced nationally that new seller enquiries are 26% up on the same time last year giving the stoutest indication that we may see a slight ease in the lack of properties on the market. When I look at Wellingborough, at this moment in time there are 138 properties for sale, compared to 105 properties a year ago. All this will be welcome news amongst Wellingborough first-time buyers with a combination of a proportional reduction in new investors and landlords.

2017 will be an interesting year for all homeowners, be they buy-to-let landlords, existing homeowners or future homeowners. 

3 Bed Semi-Detached Buy to Let Opportunity in Wellingborough

Good Morning Landlords! Today I have found a 3 bedroom semi-detached property in the popular Ambleside area of Wellingborough. The property is currently being marketed for £140,000.00 and could achieve a potential yield of 6.4%! This house would be a perfect Buy to Let Investment and with 3 bedroom properties in high demand, this one is definitely worth a look, the property is currently being marketed by Richard James Estate Agents, here are some further details:

3 Bedroom Semi-Detached Property

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

With 7,582 people in Private Rented Properties in Wellingborough - Should you still be investing in Wellingborough Buy To Let?

If I were a buy to let landlord in Wellingborough today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Wellingborough property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Wellingborough property prices do drop, the downside to that is that first time buyers could be attracted back into the Wellingborough property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Wellingborough landlord, almost a blessing in disguise.

Wellingborough has a population of 48,763, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Yields will rise if Wellingborough property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Wellingborough landlords add to their portfolio. Rental demand in Wellingborough is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Wellingborough landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s nephew and his partner.  Both are in their mid/late twenties, both have decent jobs in Wellingborough and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a 30 something and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters

So, as 15.5% of Wellingborough people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Wellingborough – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch - there is nothing like bricks and mortar!

Perfect Investment Opportunity in Wellingborough

Good Morning Potential Investors, today I have found a 2nd floor flat, located within Wellingborough Town Centre, the property is open plan, with divider wall between the lounge and bedroom. This property has been finished to the highest standard and boasts a newly fitted kitchen and bathroom and as will all property has prime location within walking distance of the train station and all local amenities, The flat is currently being marketed for £80,000.00 and has a potential yield of 6.9%, this property is currently on the market with Martin Pendered & Co, see below for more details:

1 Bedroom Flat for Sale

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

169 Wellingborough Households Occupied by OAP Renters

Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the Country that are occupied by people aged 65 and older, meaning 4.39% of OAP’s are living in private rented property.

It got me thinking two things. How many of these OAP’s have always rented and how many have sold up and become a tenant?  In retirement, selling up could make financial sense to the mature generation in Wellingborough, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy to let landlords of Wellingborough?

The Prudential published a survey recently that said nearly six out of ten OAP renters had never owned a home.  Two out of ten OAP renters were required to sell up because of debt, just about one in ten OAP renters sold their property to use the money to fund their retirement and the remaining one out ten OAP renters, rented for other reasons.

Funding retirement is important as the life expectancy of someone from Wellingborough at age 65 (years) is 19.3 years for males and 21.9 years for females (interesting when compared to the National Average of 18.7 years for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature people of Wellingborough.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of Wellingborough?  Of the 4,811 households in Wellingborough, whose head of the household is 65 or over, not surprisingly 3,420 of households were owned and 1,070  were in social housing.  However, the figure that fascinated me was the 169 households that were in privately rented properties.

Anecdotal evidence, by talking to both my team and other Wellingborough property professionals is that this figure is rising.  More and more Wellingborough OAP’s are selling their large Wellingborough homes and renting something more manageable, allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder), invested in plans that produce a decent income and while living the life they want to live.

These Wellingborough OAP renters know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being an OAP - the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn't leave family members panicking to sell the property to fund care-home fees.

Wellingborough landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.  Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!

Wellingborough Unemployment Drops to 4% and its effect on the Wellingborough 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, eight 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 Wellingborough are only 0.41% up month on month (and two months previously, they had grown with an increase of only 1.27%).

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 Wellingborough 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. Wellingborough property values dropped by an eye watering 3.48% in February 2012 and 3.23% in April 2013 – and no one batted an eyelid then.

You see, property values in Wellingborough are still 13.38% higher than a year ago, meaning the average value of a Wellingborough property today is £198,150. 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 Wellingborough 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 Wellingborough Borough Council area stands at 1,500 people (4%), which is considerably better than a few years ago in 2013 when there were 3,500 people unemployed (9.4%) in the same council area.

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 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 Wellingborough (and British) property market is that there are simply not enough properties being built thus keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t! In the coming weeks in my articles on the Wellingborough Property Market, I will discuss this matter further!

3 Bed Investment Opportunity in Wellingborough

Good Morning Investors! For the mid week Buy to Let update I have a 3 bedroom end terrace property, which is on the market for the bargain price of £130,000.00, giving you, the Investor a yield of 6.92%! This property boasts a large rear garden, potential for off road parking, 3 bedrooms and fitted kitchen and bathroom and as we always say location is the key and this property can offer good proximity to local schools, transport links and amenities. The property is currently being marketed by William H Brown, please see more details below:

http://www.rightmove.co.uk/property-for-sale/property-57801193.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

Ideal Buy to Let Investment in Wellingborough

Good Afternoon Investors! Today I have found a lovely 3 bedroom mid terrace property, perfect for a young family looking to rent in Wellingborough. The property comprises of 3 bedrooms, reception room, fitted kitchen and bathroom and is being marketed by Marshall & Cross for the bargain price of £129,995.00. As always location is a key factor and this property is located within walking distance of local schools and the town centre. I've estimated that a potential yield of 6.23% can be achieved for this house, which I think you'll agree means this property is definitely one to have a look at! See below for further details:

 
http://www.rightmove.co.uk/property-for-sale/property-42350736.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

£3.54bn – The total value of all Wellingborough Property Market

“How much would it cost to buy all the properties in Wellingborough?”

This fascinating question was posed by the 11-year-old son of one of my Wellingborough landlords when they both popped into my offices before the Christmas break (doesn’t that seem an age away now!). I thought to myself, that over the Christmas break, I would sit down and calculate what the total value of all the properties in Wellingborough are worth … and just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2005.

In the last 11 years, since the autumn of 2005, the total value of Wellingborough property has increased by 44% or £1.08 billion to a total of £3.54 billion. Interesting, when you consider the FTSE100 has only risen by 30.78% and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11 years.

When I delved deeper into the numbers, the average price currently being paid by Wellingborough households stands at £184,100.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Wellingborough; the average numbers come out like this ..

Wellingborough Property Market
Average Value of a Detached Property	Average Value of a Semi-Detached Property	Average Value of a Terraced/Town House Property	Average Value of an Apartment
£256,614	£182,218	£130,525	£104,667

... yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are more expensive, when you compare them with the much cheaper semi-detached houses, you can see detached properties don’t fare that much better in terms of total pound note value of the semi-detached houses.

So, what does this all mean for Wellingborough?  Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Wellingborough remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.

Wellingborough house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth.  Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Wellingborough not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Wellingborough has always, and will always, ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2017 Wellingborough Property Market. 

Excellent 1 Bedroom Buy to Let Investment in Wellingborough

Good Morning Landlords! For your mid-week update, I have found a lovely 1 bedroom flat, which I think would be a perfect project for a first time investor or would be a great addition to an already existing property portfolio. This flat still has the original Victorian features which really gives the property character and it also benefits from airy rooms and fitted kitchen and bathroom. Another benefit is location! Situated on the edge of Wellingborough town centre, Prospective tenants would also have the added advantage of being close to the train station and local amenities. This property is being marketed for £104,950.00 and has an estimated yield of 6.29%, the property is being marketed by Harwoods, please see below for more details:

http://www.rightmove.co.uk/property-for-sale/property-63936788.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 Semi Detached Investment Opportunity in Wellingborough

Hi All! To kick start this week of I have chosen a 3 bedroom semi-detached property in Wellingborough, the property is located close to the town centre and the train station, so is well positioned for local amenities. The property is currently being marketed at offers in excess of £146,000.00 and has an estimated yield of 6.16% and I think viewing is a must, the property is currently being marketed by Express Sales and Letting, please see below for more details:

http://www.zoopla.co.uk/for-sale/property/wellingborough/melton-road-north/

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

 

£15m a year black hole in the Wellingborough Property Market - Is Buy to Let Immoral?

An Englishman’s Home is His Castle as Maggie Thatcher lauded - everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Homeownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.

But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Wellingborough buy to let properties as an investment. Wellingborough first time buyers were in competition with Wellingborough landlords to buy these smaller starter homes … pushing house prices up in the 2000’s beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Wellingborough landlords fanning the flames of the Wellingborough housing crisis bonfire?

I believe that the landlords of the 3,140 Wellingborough rental properties are not exploitive and are in fact, making many positive contributions to Wellingborough and the people of Wellingborough. Like I have said before, Wellingborough (and the rest of the UK) isn’t building enough properties to keep up the demand; with high birth rate, job mobility, growing population and longer life expectancy.

According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.

It doesn’t sound a lot of difference, so let us look at what this means for Wellingborough …

For Wellingborough to meet its obligation on the building of new homes, Wellingborough would need to build 180 households each year. Yet, we are missing that figure by around 75 households a year.

For the Government to buy the land and build those additional 75 households, it would need to spend £15,307,343 a year in Wellingborough alone. Add up all the additional households required over the whole of the UK and the Government would need to spend £23.31bn each year … the Country hasn’t got that sort of money!

With these problems, it is the property developers who are buying the old run-down houses and office blocks which are deemed uninhabitable by the local authority, and turning them into new attractive homes to either be rented privately to Wellingborough families or Wellingborough people who need council housing because the local authority hasn’t got enough properties to go around.

The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.

So only you, the reader, can decide if buy to let is immoral, but first let me ask this question - if the private buy to let landlords had not taken up the slack and provided a roof over these people’s heads over the last decade .. where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!

Great One Bedroom Investment Opportunity in Wellingborough

Good Morning Landlords! I thought I would brighten up this miserable January morning with a hot Buy to Let deal! I have found a one bedroom apartment with a potential yield of 6.71%! This apartment is currently on the market for £85,000.00, so it won't break the bank if you still recovering from the expense of Christmas. The property is being marketed by Horts Estate Agents and I think you'd be missing a deal if you didn't go and view it, here are some more details:

http://media.rightmove.co.uk/11k/10482/63866849/10482_4318902_IMG_01_0000_max_135x100.jpg

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’s Private Renting set to hit 4,427 Households by 2021 - Is Buy to Let Immoral?

Can we blame the 55 to 70-year-old Wellingborough citizens for the current housing crisis in the town?

Also known as the ‘Baby Boomer Generation’, these Wellingborough people were born after the end of the Second World War as the country saw a massive rise in births as they slowly recovered from the economic hardships experienced during wartime.

Throughout the 1970’s and 1980’s, they experienced (whilst in their 20’s, 30’s and 40’s) an unparalleled level of economic growth and prosperity throughout their working lifetime on the back of improved education, government subsidies, escalating property prices and technological developments, they have emerged as a successful and prosperous generation.

...Yet some have suggested these Wellingborough baby boomers have (and are) making too much money to the detriment of their children, creating a ‘generational economic imbalance’, where mature people benefit from house-price growth while their children are forced either to pay massive rents or pay large mortgages.

The issue of housing is particularly acute with the generation called the Millennials, who are young people born between the mid 1980’s and the late 1990’s. These 18 to 30 years, moulded by the computer and internet revolution, are finding as they enter early adult life, very hard to buy a property, as these ‘greedy’ landlords are buying up all the property to rent out back to them at exorbitant rents ... it’s no wonder these Millennials are lashing out at buy to let landlords, as they are seen as the greedy, immoral, wicked people who are cashing in on a social despair.

Like all things in life, we must look to the past, to appreciate where we are now.

The three biggest influencing factors on the Wellingborough (and UK) property market in the later half of the 20^th Century were, firstly, the mass building of Council Housing in the 1950’s and 60’s. Secondly, for the Tory’s to sell most of those Council Houses off in the 1980’s and finally 15% interest rates in the early 1990’s which resulted in many houses being repossessed. It was these major factors that underpinned the housing crisis we have today in Wellingborough.

To start with, in 1995 the USA relaxed its lending rules by rewriting the Community Reinvestment Act. This Act saw a relaxation on the Bank’s lending criteria’s as there was pressure on these banks to lend on mortgages in low wage neighbourhoods, as the viewpoint in the USA was that anyone (even someone on the minimum wage) any working class person should be able to buy a home.  Unsurprisingly, the UK followed suit in the early 2000’s, as Banks and Building Society’s relaxed their lending criteria and brought to the market 100% mortgages, even Northern Rock started lending every man and his dog 125% mortgages.

So when we roll the clock forward to today, and we can observe those very same footloose banks from the early/mid 2000’s (that lent 125% with a just note from your Mum and a couple of breakfast cereal tokens), ironically reciting the Bank of England backed hymn-sheet of responsible-lending. On every first time buyer mortgage application, they are now looking at every line on the 20-something’s banks statements, asking if they are spending too much on socialising and holidays ... no wonder these Millennials are afraid to ask for a mortgage (as more often than not after all that – the answer is negative).

Conversely, you have unregulated Buy To Let mortgages. As long as you have a 25% deposit, have a pulse, pass a few very basic yardsticks and have a reasonable job, the banks will literally throw money at you ... I mean Virgin Money are offering 2.99% fixed for 3 years – so cheap!

So, in Part Two next week, I will continue this emotive article and show you some very interesting findings on why young people aren’t buying property anymore (and it’s not what you think!).

Wellingborough Property Market Sees An Unpredicted Autumn Boost of 3%

Well, it doesn’t seem like two minutes ago that it was Christmas – and now it’s all over! One cold December morning, after arranging the office’s Christmas cards I thought I would nip out for a quick festive coffee and over-priced mince pie at my favourite local coffee shop The Pump House.  I met an old client of mine in the coffee shop and we got talking about the Wellingborough property market. I had just completed my research for my next blog article and I would like to share with you the parts of the conversation relating to the Wellingborough property market.

He asked me what my thoughts were about the last half of the year in regard to the Wellingborough property market and if there were any great buy to let deals around. In reply I said that, in my view, shrugging off the uncertainty of the initial post Brexit vote, I have seen an increase in supply and a rise in the number of properties selling at the lower to middle end of the market, meaning both first time buyers and buy to let landlords have been returning in the last few months – proof the market is beginning to bounce back.

So let’s look at the numbers ..

In November 2016, according to the three main property portals (Rightmove, Zoopla and OnTheMarket) there were a total of 150 properties for sale in NN8. In November 2015, there were only 145 properties for sale, a rise of 3%.

When I split it down into bedrooms (note things like building plots and part commercial/part residential etc won’t be in these figures so the numbers below wont exactly match up to those in the above paragraph).

.. and when I looked at type of properties  .. it got even more interesting 

Type of Property	Properties on the market in Nov 2015	Properties on the market in Nov 2016	Per cent Change
Detached	72	58	-19%
Semi	29	45	+55%
Terraced	17	23	+35%
Flat	12	11	+8%

As the number of NN8 properties put up for sale has risen by 3%, homeowners have become more realistic about how much their homes are worth. This increase in homeowners wanting to sell suggests there is renewed confidence in the Wellingborough property market and there are also signs that people are being more realistic about pricing their property.

As you can see, there has been a significant uplift in terraced and semi-detached properties, which means there is greater choice for first time buyers and landlords. So with a combination of realistic pricing and more properties on the market – both first time buyers and landlords alike might be able to pick up a few bargains!