Thursday, 9 February 2017

Should you still be investing in Warrington Buy to Let Property?

If I were a buy to let landlord in Warrington today, I might feel a little bruised by the assault made on my wallet after the last 12 months by HM Treasury’s tax changes on buy to let. With 18,046 people in private rented properties in Warrington – is the market now saturated?

To add insult to injury, Brexit has caused a tempering of the Warrington property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year. If that does happen, first time buyers could be attracted back into the Warrington property market; meaning less demand for renting and a decrease in average rents.

Yet, before we all run for the hills, all these things could be serendipitous to every Warrington landlord, almost a blessing in disguise.

Warrington has a population of 163,873, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Yields will rise if Warrington property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values level off or come down, that could help Warrington landlords add to their portfolio. Rental demand in Warrington is expected to stay solid and may even see an improvement if uncertainty is protracted.

However, there is something even more important that Warrington landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I got chatting with my wife’s nephew and his partner at a family get together.  Both are in their mid/late twenties, both have decent jobs in Warrington and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property! I enquired why they weren’t planning to buy and the answer surprised me.

They don’t want to put cash into property, as they would rather spend it on living and socialising –going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 11.0% of Warrington people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Warrington – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch - there is nothing like bricks and mortar!

If you are looking for an agent that is well establishedprofessional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on 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.

Follow The Buy-To-Let Property Investment Market in Warrington

Warrington Property Market LinkedIn Page

Hamlet Homes Letting Agents Warrington Facebook Page

Hamlet Homes Letting Agents Warrington Twitter Page

Warrington Investment Property Specialist Hamlet Homes Website

No comments:

Post a Comment