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