The Warrington housing market is a fascinating beast and has
been particularly interesting since the Credit Crunch of 2008/9 with the
subsequent property market crash. There is currently some talk of a ‘property
bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in
the Country. Upon saying that, looking at both what we do as an agent, and
chatting with my fellow property professionals in Warrington, the market has
certainly changed for both buyers and sellers alike (be they Warrington buy to
let landlords, Warrington first time buyers or Warrington owner occupiers
looking to make the move up the Warrington property ladder).
Warrington
house values are 4.25% higher than a year ago, and the rents Warrington tenants
have to pay are 1.1% higher than a year ago
When we compare little old Warrington to the national
picture, national property values have risen by 0.4% compared to last
month and risen by 3.0% compared to a year ago, and this will
surprise you even more, as nationally, property values are 19.8% higher than
January 2015 (compared to 11.4% higher in the EU in the same time frame).
However, if we look further back...
Since 2006, Warrington
house values are 23.24% higher, yet the rents Warrington tenants have had to
pay for their Warrington rental property are 14.9% higher
...which sounds a lot, yet UK inflation in those 12 years
has been 42%, meaning Warrington tenants are 27.1% better off in ‘real spending
power terms’.
Looking at the graph, the rental changes have been much
gentler than the roller coaster ride of property values. I particularly want to
bring to your attention the dip in Warrington house values (in red) in the
years of 2008 and 2009 ... yet as Warrington property values started to rise
after the summer of 2009, see how Warrington rents dipped 6/12 months later
(the yellow bars)…. Fascinating!
So, we have a win for tenants and a win for the homeowners,
as they are also happy due to the increase in the value of their Warrington
property.
However, maybe an even more interesting point is for the long-term
Warrington buy to let landlords. The performance of Warrington rental income vs
Warrington house values has seen the resultant yields drop over time (if house prices rise quicker than rents –
yields drop).
Whilst, it’s true Warrington landlords have benefited from
decent capital growth over the last decade –with the new tax rules for
landlords – now more than ever, it’s so important to maximise one’s yields to
ensure the long term health of your Warrington buy to let portfolio. More and
more I am sitting down with both Warrington landlords of mine and landlords of
other agents who might not be trained in these skills - to carry out an MOT
style check on their Warrington portfolio, to ensure your investment will meet
your future needs of capital growth and income. If you don’t want to miss out
on such a MOT check up, drop me a line – what have you got to lose? 30 minutes
of time against peace of mind - the
choice is yours.
Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.
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