Warrington Property Market Outperforms Chester by 46%

Like most people these days, Mike (a landlord from Chester) took to Google and started to research neighbouring towns. He came across my blog, took my invitation up and gave me a call.

Mike explained his situation – he lives between Warrington and Chester, in Frodsham, and he currently has a few properties in Chester that he purchased just after the crash. Mike is now in the market to purchase a few more properties, however the prices of the properties he would usually look to buy to let have increased and it no longer financially stacks up.

After doing some research, Mike decided he was open to the idea of investing in Warrington. Mike isn’t really looking for capital growth; he is looking for high yielding properties. Articles I’ve written previously will tell you that Warrington has plenty of opportunities for high yielding properties.

The Numbers

As always, I like my figures. Even though I’m working on averages, it’s always good to see how each town stacks up. So I compared some numbers – the average property prices and then average yields. While these are averages, property deals can be found in both towns. You just have to keep your eye on the ball daily.

Looking at Chester, the average property price can be an impressive £179,950 and the average rent is equally high at £675 per month. In Warrington, an average property is £110,000 and a slightly lower average rent compared with Chester of £667 per month. The annual yield in Chester could be only 4.5% per year, compared with Warrington, where Mike could achieve an annual yield of nearer 7.2%.

It goes to show our town of Warrington can be a good area for an investment property, but it is a decision that shouldn't be taken lightly. Like I said before, these are only averages, so the yields for some small to medium sized properties in popular areas of Warrington can achieve yields of 7% to 10% per year.

We recently helped a landlord find a property for £65k in Warrington with a £5,000 refurbishment cost – a nice two up two down which is now fully tenanted with a monthly rental income of £525. This is a huge 9% yield.

We did this by checking what comes on the market daily and acting fast. So keep looking and if you would like a second opinion on any properties you see for sale online then feel free to email me the details and I will give you my honest opinion – good or bad, my email address will be at the bottom of this post.

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/

The Future of the Warrington Property Market

As the trees turn from green to hues of red and brown, the Warrington property market has a confident feel to it. 

With the continued lack of properties being built and an inherent shortage in reasonable quantity and quality coming to the market, buyer enquiries are strong and motivation is even stronger. Especially given those inexpensive lending rates and general demand caused by under supply.

Now of course, there are a few potential hurdles coming towards us in the coming months that could affect the Warrington (and UK) property market. Mrs. May has yet to get her teeth into Brexit negotiations and we don’t know what the US Presidential elections might do to the money markets around the world. All of this meaning that on the run up to Christmas, some savvy buyers may take advantage of the lack of certainty by making cheeky offers. However, I don’t believe these will have a huge impact on property values (like the 2008 Credit Crunch).

You see, property ownership, whether it’s for yourself as a homeowner or buy to let landlord, is a long term investment. In fact, focusing on buy to let, a number of landlords who own property in Warrington have made contact with me recently asking for my thoughts on the future of the buy to let market in Warrington. 

Well, as the Politician Edmund Burke said in the 18th century:

'Those who don't know history are destined to repeat it.'

In other words, to see the future you must look into the past.

A SHORT HISTORY OF THE HOUSING MARKET

Since the millennium, the housing market has had everything thrown at it. 

The recent Brexit, last year’s General Election, the near melt down of the World Economy with the Credit Crunch, The Dot Com boom and subsequent bust, the housing boom of 2001... the list goes on.

AVERAGE PROPERTY VALUES IN WARRINGTON SINCE THE MILLENNIUM 

Even though the Dot Com bubble burst in 2000, two years later, in January 2002, property values in Warrington had risen from £93,405 to £133,200. These kept rising to March 2008, when they peaked at £171,838. Of course, then we had the Credit Crunch and property prices continued to fall until April 2009, where they averaged £156,394. But look where they are now: £194,447.

The point I am trying to get across is this:

Long term future property values are more helpful to landlord investors than the month by month headline grabbing micro movements in the property market. 

Look at the graph and you will see the growth in property values is an upward trend BUT, the average darts about as each month goes by. So, don’t watch the property indexes and panic if values drop next month or the month afterwards, because even in the glory days of 2001 to 2004 and 2012 to 2014, without fail, values always dropped slightly around Christmas. However, people will always need a roof over their heads - and if they can’t buy and the council aren’t building anymore... only buy to let landlords can meet that demand.

Warrington landlords are being hit in the pocket with the new up and coming taxation rules. So yes, we might have a bumpy ride on the run up to Christmas because of the points raised earlier. 

But, Brexit or no Brexit, the trend will be a slow and steady upward momentum of property values, demand for rental properties and yields in the Warrington property market into 2017 and beyond.

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/

Westbrook, Warrington – Property everywhere but none to rent...

I have been living in and around Warrington for most of my adult life and, so; the majority of my investment properties are also located around Warrington. That’s not just because it’s where I found the best deals however – yes the numbers stacked up, but what really swings it is knowing the area. I know where to buy for yield AND where to buy for capital growth. I also know area affects the type of tenant you will attract: whether it’s large families, young couples or even single professionals.

When it comes to investing in property, the safest way to invest is stick to where you know.

I was recently asked why there are so few properties to rent on the Castle Green Estate in Westbrook.

With having local knowledge, I knew that Castle Green is an area where families tend to buy rather than rent. However, I thought I would do some research into the estate.

I found that since the start of 2016, only six properties have been available for rent on the Castle Green Estate – one of Warrington’s most popular housing estates.

Castle Green in More Detail

To be honest, I was a little surprised that it was that high. If I look at the six properties that have been up To Let in Castle Green, the price ranges from £795pcm to £1,250pcm. While this may seem like high rental income, when we look at the average property price on this estate (coming in at £240k), we can see that it doesn’t stack up financially. In turn, this answers the question of why there are so few rental properties on the Castle Green Estate.

After going through those numbers, I did a little bit more digging to see if these houses performed better for capital growth. Some of these houses actually sold for around the £70k – £80k back in 1995 – 1997 and the properties are now worth £240k+. Although they may not be producing the great yields of 8+% that you can achieve in other areas of Warrington, the long term growth on these houses is great.

We can help you identify property values and other useful property related information to make sure you can get everything you need about your future investments.

Warrington Property Facts

The average house price in Warrington is £209,200 (according to mouseprice.com) and the average income of someone living in Warrington is £21,458 per year.

The price to earnings ratio is an effective measure of the relative affordability of property in a given area. The higher the number – the more expensive it is to buy. In Warrington, the ratio is 9.75, compared to 11.92 nationally. Looking at the figures above, it shows that the average property in Warrington is almost worth ten times the average household income. So we can safely say that the rental market remains in high demand.

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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/

Blog, http://www.warringtonpropertyblog.co.uk/

Rental Yields Increased on Padgate Lane, Warrington

A landlord I know has owned a few properties on Padgate Lane for the last twenty years. She came in to our office for a brew and we got on to discussing the rise and fall of property prices on the street – and more to the point, how this has affected her yield over the years.

In 1996, when she purchased her first property on Padgate Lane, the average value of a terraced house on the street was £75,349. By 2006, this had a sharp rise to £104,770. This rise in value slowed down and dropped, with average values being £101,102 in 2011 and slight increase of £103,100 in 2015.

At the height of the property boom in this area, a terraced house on Padgate Lane had an average value of £104,770. This soon dropped in 2011 to £101,102, with the average value decreasing to around £90,000 this year (average worked out on only two transactions, so not a true reflection of the

street average).

When she told me of the rents she had achieved on the street, they seem fairly stable over the twenty years. In 1996 - 2006 the average rent was £350 per month and is now between £450 and £550, dependant on the property’s condition. Therefore, a landlord could expect a respectable annual yield of around 7% on Padgate Lane, at the moment.

From this research, it shows that the landlord was achieving a yield of around 5% 20 years ago and is now achieving higher yields of 7% +. Although the terraced houses on Padgate Lane reached their highest value of £104,770 just before the crash, it doesn’t seem like the street has recovered much since then – while it is slowly on the up, you can still pick up a good deal on Padgate Lane.

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/