As my regular readers know, my passion is the Warrington property. As a property agent I like to comment on the Warrington property market, which I hope will be of interest to both homeowners and buy to let landlords alike. However, this week, I want to highlight the plight of the tenants of Warrington as more and more of their wages are being taken up by ever increasing rents.
The cost of renting a home in Warrington
has nearly broken through the £650 a month barrier as the average rent for a
property in the town, now stands at £644 per month, and whilst this was a drop
of 0.3 % last month, rents for new lets are 7% higher than they were 12 months
ago.
House price inflation has eased a
little in Warrington from 2014, but still with retail price inflation (for goods
and services) reducing to 0% any increase in property values, no matter how
small, means in real terms property is still getting more expensive. Meanwhile,
many tenants have given up saving for a mortgage deposit as rents continue to
take more and more of their wage packets leaving nothing to save for a deposit.
That means, more and more tenants are deciding to rent for the long term and
the desire for good high quality rental properties continues to exceed the
available rental stock.
I would go as far as to suggest that
rents are an ideal barometer to the state of the local economy as a whole and
strongly believe that the recent increases in Warrington rents are a sign that
the Warrington economy is picking up.
This means Warrington landlords are
continuing to benefit from the Warrington property market. The most recent Land
Registry data suggests the annual property price rises in the town have eased
over 2015, leaving property values 9.76% higher than 12 months ago. So as
property price growth is easing off, with the increased rents, rental yields
are strengthening for the first time in years to compensate. The mortgage
market has become more stable after the mad months of May and June after the
Tory’s got back into No.10, and so, everything is set to be good news for
landlords; even with the Chancellors change of tax rules in the coming years
for buy to let mortgages.
You can get some amazingly low mortgage
rate deals at the moment, so with mortgage rates low and returns still very
attractive, there has rarely been a better time to invest in rental properties.
However, (you knew there would be a
however!), it’s all about buying the right property at the right price. Not all
property types are seeing equal rises in rents and capital growth. Different
parts of the town, different types of properties are experiencing quite
different changes. For example, the average length of time on the
market the 170 Warrington properties up for rent between £250 to £500 per month
is 213 days, whilst the average length of time for the 324 properties at £500
to £1000 per month is 163 days and finally 30 properties that fall into the
£1000 to £2000 per month price bracket is 72 days.
When you start comparing different
parts of Warrington, the numbers are even stranger! The bottom line
is that you must take advice and opinion. One source of advice and opinion is
the Warrington Property Blog. In the Warrington Property Blog, you will see
many more articles like this, discussions and even what I consider to be the
best buy to let deals around, irrespective of which agent is selling it.
Whether you are a landlord, ‘Homes
Under the Hammer’ addict or just a homeowner who is interested in what is
happening to the local property market, then please visit the Warrington
Property Blog. If you have seen a deal and would like a second opinion drop me
an email on manoj@hamletwarrington.co.uk
or pop into our office 6 Bankside, crosfield St WA1 1UP plenty of free parking
+ the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Twitter, https://twitter.com/HHWarrington
No comments:
Post a Comment