Thursday, 5 November 2015

Warrington property market review for October 2015

It's that time again for a review of what has been happening in the sales & lettings market in the Warrington area throughout October 2015 (figures obtained from Rightmove and do not include private lets):

From the October rental figures above, all types and sizes of property have either the same or fewer available right now when compared to this time last year, with the exception of 1 beds of which are almost 27% more numerous now than last year - however, anyone looking for such a property will also know that smaller, cheaper properties such as these get snapped up virtually instantly, so although there were more available, they were off the market in record time (we often let such properties within a week or 2 at the most). Houses with 2 & 3 bedrooms continue to dominate the market at virtually the same ratio as last year, but at the top end it is the larger properties that have really fallen, with 12% fewer 4 beds and an amazing 30% fewer 5+ beds (just 7 were even listed across the whole of the market).

The size of the rental market is virtually the same size as it was a year ago however demand has increased significantly as private renting is fast becoming the default option for almost all of the next generation - they know what they want and how much to pay, but they won't be taken for fools and just rent any old thing.

So, as an investment property, what should you buy to maximise your exposure to the broadest possible market?  Isn't it better to look for trends in the current market and see where to hit demand head on?

Demand is always strong for rentals consisting of up to 3 bedrooms, with this end of the market accounting for 75% of everything that is out there right now. If you had money to spend on a buy-to-let property I would certainly not invest in anything larger than a 3 bed house, demand just is not there. In fact, 2 bedroom houses and flats alone accounted for over 36% of the total by themselves, and this is consistently the peak of the market for rental demand, month in and month out. Rents on most 2 beds are now in excess of £475 PCM, significantly more so for really well appointed properties which can approach and now in some cases exceed £525 PCM. Even 1 beds are now regularly advertised at around £425 PCM and many are achieving above this without a problem. Now summer is behind us, there will be a push for the next 6-8 weeks as people try to move before Christmas, as nobody wants to risk not being moved or worse still, being homeless at that time of year. 

On the sales side of the market, there was an increase of 53 (7%) for sale, with more or the same number available in all sizes except for 1 beds which increased by a staggering 33%. This is partly due to the meteoric resale price rises, and landlords or owners wanting to release the cash, with 1 bed houses shooting from around £55k to £65k in a little over a year, with the whole market now seeing an average rise across all house sizes of 8.1% year on year. We are still seeing a continuation of the drought of decent properties that started in the new year, and the chances of finding a below market value (BMV) property right now virtually nil but not impossible, with projects, renovations and poorly presented houses still selling for what many would consider to be 'silly money', because right now everyone wants to be back on the property ladder and will pay pretty much whatever it takes in order to do so.   

If you are one of the hundreds of potential investors reading this blog daily and would like advice about what to buy next, where to buy it and what to pay, then call us now on 01925 235 338 or pop into our offices on 6 Bankside Crosfield St, WA1 1 UP for impartial and friendly advice.

Don't forget to visit the links below to view back dated deals and Warrington Property News. 


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