Thursday 26 May 2016

Do you keep missing out on the perfect investment property? If so then join our Premier Investor List....2016



We are almost halfway through 2016, it seems that the first half of this year has just flown by. The last time I invited my blog readers to join our Premier Investor list was around 6 months ago so I thought I would share this post again, our premier investment list will give you direct access to any properties we find in Warrington which will make a good investment. 

Having found our blog, you probably know a little more about the local market and about us, and you've probably even been in contact to ask us about something you've already seen. All good so far.


So why wait?


With blogs featuring great deals published daily, wouldn't it be great to be able to 'jump the queue' and get the inside info a few days early? We constantly check the market and keep an up to date list of potential Buy To Let properties in the Warrington area, so we have a database we can refer to should you wish to consider a selection of options.






If YOU want to be the first to know about what would make a great Buy To Let investment that is currently available either on the open market or via our own sources (landlord to landlord sales etc), call or email us now and get your name put on our Premier Investor list on 01925 235 338, pop through the door of our offices at Bankside offices, Crosfield Street in Warrington or send us an email on manoj@hamletwarrington.co.uk




Dont forget to visit the links below to view back dated deals and Warrington Property News. 

Thursday 19 May 2016

Warrington Property Market Crisis



One of the key factors that determines the price of anything, is the demand and supply of the item that is being bought and sold. When it comes to property, demand can change overnight, but it takes years and years to build new properties – thus increasing the supply.

Increasing Supply

Earlier this year, the Conservatives pledged to build over one million homes by 2020.

I am of the opinion that, as a country, irrespective of which party, we have not built enough homes for decades. If the gap between the number of households forming and the number of new homes being built continues to grow, we are in danger of not being able to house our children or grand children. I believe the country is past the time for another grand statement of ambition by another Housing Minister.


Number of Houses

To give you an idea of the sorts of numbers we are talking about:

In the area of Warrington Borough Council in 2006, 500 properties were built. In 2008 that rose to 550 and two years later in 2010, it peaked at 570. By 2015, that figure had dropped by 36.84% to 360 properties built.



The outcome of too few homes being built in Warrington means the working people of the town are being priced out of buying their first home and renters are not getting the quality they deserve for their money.

The local authority isn’t building the estates they were after the war. Housing associations are having their budgets tightened year on year, meaning they have less money to spend on building new properties. Many Warrington youngsters are living with their parents for longer because they cannot afford to get onto the housing ladder and growing families are unable to buy the bigger homes they need.


Other Factors

To complicate the issue of a lack of sufficient new housing in Warrington, we also have the impact of HS2 to contend with. As our rail connections to London improve, so does the attraction of Warrington to the London workforce, who are also getting priced out of the housing market. 

Warrington has long been a commuting hub into London, but when HS2 arrives we will be, for all intents and purposes, living in a London suburb.

This will do nothing but increase demand for housing which is already in short supply. If we don’t see a sharp increase in investment in new house building to counteract this, then I believe we will see house prices in this area continue to spiral upwards… just as they have done in London.

It’s great news for investors – but not such good news for those struggling to get on the housing ladder.


If you are looking to buy a house, either as an investment or as a first step onto the property ladder, my advice would be to not delay as prices are only going in one direction – UP!

One source of further info on all of these issues, where you will find other articles similar to this on the Warrington property market, is the Warrington Property Blog.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.

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

Facebook, 
https://www.facebook.com/hamlethomeswarrington

Twitter, 
https://twitter.com/HHWarrington

Website, 
http://www.hamlethomeswarrington.co.uk/

Tuesday 17 May 2016

3 Bedroom Gem in Warrington producing 7% yield

Property update (13/06/2016):

I have just been informed that the Vendor will be happy to take £90k for this property which then brings it to the 7% yield if you rent this property out for around £525 pcm



Good Morning, I hope everyone has had a great weekend, did you spot our articles on the Warrington Guardian website yesterday?

So as you know its been a while since I shared deals in Warrington, this doesnt mean there are no deals it means I have been flooded with emails and enquries from landlords in Warrington to give them my opinion on property deals they have spotted. 


However, I would like to share this beautiful 3 bedroom house on Cabul Close with you. This went on the market at £100k and has recently been reduced to £95k.  The property comes with the big range cooker and hood. All the bedrooms have recently had new radiators installed. 



This house would be ideal for a family, as it is close to schools, plenty of local shops and only a short walk to Warrington Town. Once you have the right tenant in a house like this they tend to be there for a long time. A house done to this standard will let for around £525pcm which would bring in a yield of around 6.6% at the selling price of £95k - Not a bad return on your investment.

I have done some research on the history of Cabul Close and the most a 3 bedroom house sold for on this street is £96k back in 2005 a couple of years before the crash. The last house sold on this street was a 4 bedroom house in Feb 2015 and this sold for £79k. 




From an investment point of view this house is priced slightly to high as there is no room for growth - Remember, as an investor you make your money on the purchase price. 

To achieve that 7% yield the property would need to sell at £90k

If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Warrington Property Market, together with regular postings on what I consider the best buy to let deals in Warrington (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!


Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.

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

Facebook, 
https://www.facebook.com/hamlethomeswarrington

Twitter, 
https://twitter.com/HHWarrington

Website, 
http://www.hamlethomeswarrington.co.uk/

Thursday 12 May 2016

Affordability of Housing in Warrington






Talking to an elderly relative recently, he reminded me that in his day you could have bought a property for the same price as a decent second hand car today! What’s more, his father was buying property for the same price as a decent 50 inch LCD TV! 

Now of course, these are only headline prices and we have had wage growth and inflation.  Interestingly, since the Second World War, property values in Warrington doubled in 1961, 1971, 1975, 1980, 1988, 2000 and 2006.


House prices now

Looking more recently, since the start of the Millennium, these increases in property values have generated large increases in equity for many homeowners, but on the other side of the coin also making housing unaffordable for other people. 

It might interest readers to note that most of Europe experienced sharp increases in property values in the early 2000s, with only Spain beating us – although we know what has happened to the Spanish property market over the last few years!  In the 2000s, the British situation was different in two regards. 

First, the property value boom started earlier and saw more sustained increases.

Second, the regional pattern was fairly uniform.


What about more recent changes to values?

However, since 2010, the regional pattern has been completely different in the UK.  Compared with the last property boom in 2007, average property values today in England and Wales are 1.2% higher, whilst in Greater London they are 35.7% higher. In Warrington they are 4.17% higher.

The London property market has been like a different country. 

Looking specifically at Warrington, it has continued to become more difficult for first time buyers to get on the housing ladder.  The best measure of the affordability of housing is the ratio of Warrington Property Prices to Warrington Average Wages.

The higher the ratio, the less affordable properties are. 


Ratio of Wages to House Prices
1997       3.04 to 1 (i.e. the average value of a Warrington property was 3.04 times higher than the average annual wage in Warrington)
2000       3.79 to 1
2002       4.31 to 1
2003       5.26 to 1
2007       6.83 to 1
2009       4.12 to 1
2012       6.23 to 1
Today     8.12 to 1

You can see quite clearly, despite the improvement just after the 2007 property crash, in subsequent years Warrington house prices rose, but wages did not follow suit. Hence, the ratio started to rise. 

This has meant there has been deterioration in affordability of property in Warrington over the last couple of years.  This is one of the many reasons why the younger generation is deciding more and more to rent instead of buy their own house.  The local Council sold off council houses in the Thatcher years.

So, for many on low incomes or with little capital, owning a home has simply never been an option.


The increase in the renting market

With fewer people able to save up the deposit required by mortgage lenders, more and more people are looking to rent, this has resulted in a change in attitudes towards renting over the last decade.  The delay in moving up the property ladder has driven rents up in Warrington over the last few years, as more people are seeking properties to rent.  All these things have combined to make the demand for rental property in Warrington rise. 


If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Warrington Property Market, together with regular postings on what I consider the best buy to let deals in Warrington (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!

Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.

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

Facebook, 
https://www.facebook.com/hamlethomeswarrington

Twitter, 
https://twitter.com/HHWarrington

Website, 
http://www.hamlethomeswarrington.co.uk/