Availability of great value property in Warrington during 2014 has led to a shortage this year

Throughout early 2014, as the property sales market was about to start its upward movement, there was an excess of great value buy-to-let investment property available across Warrington, yet the first few months of this year has seen a virtual drought of quality investment property. Why is this, and what options are there for investors that are trying to get into the market at this time?

Prices of smaller properties, the sort that we would generally recommend to new buy-to-let investors, have increased beyond the Warrington average of 9.2%, Some of our most popular tenanted properties are 2 bed terraces on nice estates; again these have risen from approximately £70k to in excess of £90k for the very best examples, a very handsome 12% growth here as well. As you can see, anyone trying to get in at this level now has to have substantially deeper pockets, but anyone that DID buy last year now has excellent yield built in as a result of the relatively affordable price they would have paid. There may still be bargains and renovation projects out there, but it seems that shrewd sellers know the state of the market at this time very well indeed, and are holding off for what could otherwise be seen as unrealistic sale prices – the thing is, they are also achieving them, so what does that tell you?

We are also starting to see an influx of more rental properties on the market this year, offering a wider range of choice for tenants through increased competition, and although some properties are commanding slight increases in rent over last year’s rate, in a number of cases we are advising landlords to simply consolidate and maintain an even keel at this time rather than pushing for the extra £20 or so in such a crowded market. For new investors, sadly this is a potential double whammy – first, resale prices are now lifting and generally these are being achieved, putting further upward pressure on prices as the bar raises and supply remains restricted, so the cost of entry starts to move out of reach for some. Secondly, increased competition from other rental properties means that stock may be sitting on the market for that little while longer, putting further pressure on stock to be at it’s very best in order to stand head and shoulders above any competitors.

Further to all this is the speed of the market, with investors often missing what appear to be great opportunities because by the time they hit the market they are usually already sold or will sell within a day or two, so the only way to try to keep ahead is to either keep a constant eye on the market, ie daily, or register with local agents to be informed when repossessions, renovation projects or distressed sales are about to be listed.

In the meantime, why not speak to us about possible buy to let opportunities we may be able to introduce you to in the Warrington area, either through our own landlord disposals or through our industry contacts. For impartial advice about what to buy next, where to buy it and what to pay, then email me now on tpatel@hamlethomesproperty.co.uk or call on 01925 235 338 for free, and more importantly, honest advice.