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 established, professional and communicative,
then contact us to find out how we can get the best out of
your investment property.
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.
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