A lot has
happened over the last year that impacts on landlords. We have had a raft of
new legislation, including changes in Stamp Duty thresholds for investing
landlords with more tax changes on the way. However, there has been good news:
with considerable increases in selling prices giving landlords substantial
capital gains and in most cases rents have also increased significantly.
But where are we now?
What impact
have these changes had? Is buying to let still a sensible option? What is the
current state of the Warrington lettings market?
The short
answer is yes. It is still a sensible investment
to buy to let. The capital gains we have seen, and are likely to see, are substantial
enough to give a sensible return in excess of other investments available to
you and me. The tax changes will have an impact, so if you are highly geared it
may become marginal on a monthly return basis, but the capital gains are likely
to overshadow this if you have purchased the right property.
The Rental
Market Right Now
Rents seem to
have reached a plateau over the last few weeks.
Looking at
Rightmove this morning, there are 619 available properties. This includes 324
commercial properties, but is still higher than the £500 pcm levels we saw
earlier this year. Noticeably there are increasing numbers or properties
appearing as reduced.
This
reinforces the need to get your price right at the start of your marketing and
to not be too ambitious. Do not be led by an over excited agent trying to hit
his listings target – look at the evidence in detail.
For example,
if you are letting a modern two bedroom house, Rightmove will show you that
almost everything below £500pcm has been let. Those over £500 have likely had
to reduce, had that something extra that appealed to tenants, continue to wait
for the right tenant or just got lucky when the market supply was poor.
Changes to
Rightmove
Whilst
mentioning Rightmove: be aware that they are in the process of changing the way
they display property.
A standard
display will include two photographs… looking this morning there are many
properties that only have one photo showing. Check with your agent and
hopefully they will already be on the ball with this.
Rightmove have
also changed the filters you can use. Of the 619 properties listed today 37 of
them do not appear using any filter – not great if you are trying to let! Check
your agent has listed your property correctly.
Why the
Increase in Property?
The increase
in available property numbers is not only a result of landlords buying early
this year to avoid the revised Stamp Duty, but also tenants being
reluctant to pay the increased market rents. Notably, we are seeing very few
tenants ending their tenancies at present, preferring to avoid moving costs and
stay where they are. Many landlords, rightly, take a softer view on increasing
rent if they have a reliable tenant in place, so existing tenants are tending
to stay put.
To
Summarise
In summary,
the lettings market remains strong.
If you have the right property, in a sensible location, present it well
and don’t over-price it, you will let readily to good tenants.
Do make it as
tax efficient as possible (I can point you in the right direction if this is an
area you are not sure about) and do make sure you are up to date with
legislation changes.
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/
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/
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