The Warrington property market outperforms Wigan by 33%

Earlier last year I compared the Warrington property market against Widnes and Runcorn to see which area would give landlords the best return on their investment.

I Also did a seperate piece comparing Warrington and Bolton.

I always like to see how Warrington's property market is preforming against the local towns however its something I have not done for a few months, however a landlord with a small property portfolio came into our office in Warrington Bankside last week. He lives between Wigan and Warrington, in Lowton, and has properties in both towns. He wanted to ask our opinion on where he should his next Buy to Let property.

Looking at Wigan, the average property price can be an impressive £100,000 and the average rent is equally high at £450 per month. In Warrington, an average property is £105,200 and the average rent is only £635 per month. The annual yield in Wigan would be around 5.4% per year, compared to Warrington where he could achieve an annual yield of nearer 7.2%.

It made me consider two other towns close by, Frodsham and Altrincham. I was not to surprised to find property values are much higher than in Warrington, with an average property price in Frodsham, of £210,000. They have an average rent of £675 per month, which could achieve a yield of 3.8%. The average price of a property in Altrincham is £384,950, with rents of around £995 per month. This could achieve a yield of 3.1% per year.

It goes to show our town of Warrington is still a good area for an investment property, but it is a decision that shouldn't be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas of Warrington can achieve yields of 6.5% to 9% per year.

The figures I have used to obtain this information are directly from the Online Portals and they are average’s. There are BTL deals to be found in any town, its all about knowing where to look and when to look, and who better to ask than a local independent agent in that town. We pride ourselves on giving our landlords up to date local property news. We share our thoughts with local investors, and we are all from different areas within Warrington so we have good knowledge of our town right down the streets that rent well and the ones that don’t.

As always, if you are an investor in the Warrington property market and would like a second opinion on a property you have seen then send the URL of the properties you have seen online over to me or you would like to pop in and have a chat, then you can either email me on manoj@hamletwarrington.co.uk or call on 01925 235 338. Our address is 6 Bankside, Crosfield Street (opposite Iceland and Aldi – so plenty of parking available). The kettle is always on and we will even pull out the posh biscuits!

Don't forget to visit the links below to view back dated deals and Warrington Property News.

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Website, http://www.hamlethomeswarrington.co.uk/

10% more properties on the market in Warrington

Think back to April 1st for a minute.. it was definitely no joke for some landlords, as they rushed their buy-to-let property purchases throughout late March to beat the extra 3% stamp duty George Osborne imposed on investment properties after the 31st March 2016. As some investors brought forward their 2016 property purchases to save the extra tax and speaking to fellow property professionals in Warrington, we have noticed that demand to buy in the last three months from these landlords has eased.

‘’ rise of 10.23% more properties for sale’’

Then we had the Brexit issue, which also had a tempering effect on the Warrington property market. In another article I wrote previously, I spoke of the growth rate of Warrington property values, and whilst the rate of growth is slowing, Warrington property values are still 3% higher year on year, albeit the growth rate month on month has started to moderate when compared to the heady days of month on month rises of 2014 and 2015. Interestingly though, a very recent members survey of the Royal Institution of Chartered Surveyors states that only 17% of members believed property values would increase over the next Quarter compared to 44% at the end of 2015.

All this had led to an increase in the number of properties for sale in the area. For example there were 1,193 properties for sale in Warrington in December (of which 417 came on to the market for the first time). In January, February and March, 1,315 properties came onto the market in Warrington – or an average of 438 per month – meaning by end of the first Quarter, there were 1,315, properties available for homeowners and landlords alike to buy in Warrington; a rise of 10.23% more properties for sale. The reason this is important is because I expected the number to be slightly lower because of the normal Spring rush in the property market..

Nevertheless, I believe this easing of the Warrington property market is a good thing, as investment landlords won’t have to pay top dollar to secure a property because of the increase in competition. On the face of it, this easing should be bad news for the 57,112 Warrington homeowners, but nothing could be further from the truth. The majority of homeowners that move, move up market, typically from a flat to terrace/town house, then a semi and then detached, so whilst last year you would have achieved a top dollar figure for your property, you would have had to have paid an even higher price to secure the one you wanted to buy. The Swings and Roundabouts of the Warrington Property Market!

However, all the signals suggest that whatever the aftermath of the vote to leave the EU, in the long term, the disparity between demand for Warrington property and the number of actual properties will still exercise a sturdy and definitive influence on the local property market. It wouldn’t surprise me that if by 2021, even considering the vote to leave, assuming we don’t have another credit crunch or a major world conflict, property prices will be between 18% to 23% higher than they are today.

I have written a detailed article on the Brexit vote and the effect on Warrington property which you can find on the blog right here – Click to read Brexit article

As always, if you are an investor in the Warrington property market and would like a second opinion on a property you have seen then send the URL of the properties you have seen online over to me or you would like to pop in and have a chat, then you can either email me on manoj@hamletwarrington.co.uk or call on 01925 235 338. Our address is 6 Bankside, Crosfield Street (opposite Iceland and Aldi – so plenty of parking available). The kettle is always on and we will even pull out the posh biscuits! 

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/

Asking Prices of Warrington Property up 14% since December

I had an interesting question the other day from a homeowner in Warrington who asked me the difference between asking prices and values and why it mattered. When it comes to selling property, there must be agreement between the purchaser (buyer) and seller (vendor) for a property sale to take place. The value a buyer applies to a property can massively differ from the value a seller or Mortgage Company places upon it. The seller, the buyer and the mortgage company must find an agreeable value to assign to a property so the sale can proceed.

In many of my articles about the Warrington property market, I talk about values, i.e. what property in Warrington actually sells for, but I haven’t spoken about asking prices for while. Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on (the others being location, bedrooms and type). Price yourself too high and you will put off buyers. So let’s take a look at the Warrington numbers.

‘’ Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on’’

Over the last 12 months asking prices (i.e. the price advertised in the paper and on Rightmove) in Warrington have increased by 14%, taking the average asking price in Warrington to £105,300 (up from £94,000 twelve months ago).

Interestingly though, when we look at, say semi-detached and terraced property, a slightly different picture appears. Twelve months ago, the average asking price for a semi-detached house in Warrington was £142,200 and today its £165,400 (a rise of 16%); whilst over the same 12-month period, the average asking price of a terraced property was £113,700 a year ago, and today its £125,400 (a rise of 10%).

‘’ semi-detached house in Warrington was £142,200 and today its £165,400 (a rise of 16%)’’

However, my research shows that the supply of property for sale in Warrington is beginning to increase. In December 2015, there were 1,193 on the market in Warrington today there are 1,412 properties on the market (up 18%). This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Warrington property market. The Warrington property market still has substantial momentum and sufficient demand remains to provoke more modest asking price rises. This noteworthy increase in supply since Christmas is currently providing more choice for buyers and is tempering asking price rises - and here is the devil in the detail - only 8% of the overall 14% annual figure (mentioned in para 3) has appeared since December.

‘’This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Warrington property market.’’

… And here is the second point to make. Asking prices are one thing, but what a property sells for (i.e. value) is a completely different matter. These are the average prices achieved (i.e. what they sold for or the average value) for property in Warrington over the last 12 months...

•      Overall Average   £169,100         
•      Detached            £290,000
•      Semi-detached    £169,950      
•      Terraced             £112,950   
•       Flats                  £103,500

The underlying fundamentals of low interest mortgages and tight supply remain prevalent in the Warrington property market however, the number one lesson has to be this ... if you want to sell, be realistic with your pricing.

As always, if you are an investor in the Warrington property market and would like a second opinion on a property you have seen then send the URL of the properties you have seen online over to me or you would like to pop in and have a chat, then you can either email me on manoj@hamletwarrington.co.uk or call on 01925 235 338. Our address is 6 Bankside, Crosfield Street (opposite Iceland and Aldi – so plenty of parking available). The kettle is always on and we will even pull out the posh biscuits! 

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/

Warrington landlords… do you have a game plan?

Over the weekend I was having a good clear out in the attic when I spotted my first monopoly board game, it’s the original one, unlike these fancy new ones with card readers and so on. I decided to get the family around and we cracked the old box of monopoly open. I actually forgot how much fun it was and secretly how competitive I am. Yes it’s just a game however I had a game plan (buy everything I land on!).

Having a game plan is key when investing your money in a Warrington property.

All landlords are different in the way they play the property game. Some landlords prefer to accept a modest yield/return on their investment for an increased certainty of finding a quality tenant. Other landlords are interested in high returns, with a greater risk with regards to the quality of the tenant. Before you start playing, it is a good idea to have a game plan.

For a low risk investment, you could buy property in the areas of Appleton, Chapleford village or even Grapphenhall which are perceived as being more desirable, where you may be able to achieve an annual yield of around 4-6%.

Following my article a few weeks ago, if you don’t mind a slightly higher risk of void periods or a more varied quality of tenant, you are likely to be rewarded with a higher annual yield of 6-8%. This level of risk can be typically taken with Victorian terraced houses around Warrington, I am happy to discuss and outline specific areas down to the streets. 

If you are after annual yields of 8%+ and over, you could take more of a risk with houses of multiple occupancy (HMO’s) we have plenty of experience with HMO’s I own a few of these myself and they bring in a much higher yield however you have to always remember that tenants moving into HMO’s are not tenants for life and you will have to expect void periods. This blog has tops and strategies to reduce the void periods and to attract potential tenants to your rooms. 

If you are thinking of getting into the property rental market and don't know where to start, speak to us for impartial advice and guidance to get the best return on your investment. Pop along and speak to us in person at our offices at 6 Bankside, Crosfield Street, Warrington, WA1 1UP, or email me personally on manoj@hamletwarrington.co.uk

Don't forget to visit the links below to view back dated deals and Warrington Property News.

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Warrington House Prices to Drop 18% After Brexit?

54.3% of Warrington Voters voted to leave the EU – What now for the 57112 Warrington Landlords and Homeowners? 

It’s 5.50am as I start to type this article and David Dimbleby has just announced the UK will be leaving the EU as the final votes are counted. As most of the polls suggested a Remain Vote, it came as a surprise to most people, including the City. The Pound has dropped 6% this morning after the City Whiz kids got their predictions wrong and MP’s from the Remain camp are using words like “challenging times ahead”.

.. and now the vote has been made .. what next for the 48923 Warrington homeowners especially the 27731 of those Warrington homeowners with a mortgage?

The Chancellor in the campaign suggested property prices would drop by 18%. Using Treasury estimates, their method of calculating this was tenuous at best, but focused around the abrupt and hasty increase in UK interest rates, which in turn would raise the cost of mortgages, and therefore lower demand for property, causing a drop in property prices.… and I would say, yes .. that will probably happen.

Warrington Property Values

Warringtonproperty values will probably drop in the coming 12 to 18 months – but by 18% - I am sorry I find that a little pessimistic and believe that figure was rhetoric to get homeowners and landlords to vote in a particular way. But the UK property market is quite a monster.

Since the last In/Out EU Referendum in June 1975,

property values in Warrington have risen by 1545.1%

(That isn’t a typo) and whilst property prices did drop nationally by 18.7% between the peak of 2007 and bottom of the market in 2009, when one compares property values today in the country, compared to that all-time high of 2007, (the period before the financial crisis of the Credit Crunch of 2008/9) .. they are still up 10.14% higher.

Another Credit Crunch?

And so, notwithstanding the Credit Crunch, the worst global economic outlook since the 1930s and the recession it brought us, a matter of a few years later, the Government were panicking in 2012/3/4 that the housing market was a runaway train.

Now the same Credit Crunch doom-mongers and Sooth-Sayers that predicted soup kitchens in 2008/9 are predicting Brexit meltdown. Bad news sells newspapers. Stock markets may rise, stock markets may fall, yet the British public continued to buy property in 2009/10 and beyond. Aspiring first time buyers and buy to let landlords dusted themselves down, took a deep breath and carried on buying… because us Brit’s love our Bricks and Mortar .. we need a roof over our head.

However, as mentioned previously, if the value of the pound drops, in the past UK Interest Rates have risen to reverse that drop. However, whilst a cheaper pound will make your pint of Sangria a little more expensive on your Spanish holiday this year and make your brand new BMW pricer .. it will make British export cheaper! Which is great for the economy.

Interest rates

… and what of interest rates? Since 2009, interest rates have been at 0.5% and lots of people have become accustomed to those sorts of levels. So what if interest rates rise .. end of the world? Interest rates in the 1986/88 property boom were on average 9.25%, the 1990’s they were on average around 6.5% and uber-boom years (when UK property values were rising by 20% a year for three or four straight years across the UK) .. 4.5%. Many of you reading this who are in their 50’s and older will remember interest rates at 15%.

But I suspect interest rates won’t rise that much anyway, as Matt Carney (Chief of the Bank Of England) knows, raising interest rates causes deflation – which is the last thing the British economy needs at the moment. In fact they have been printing money (aka Quantitative Easing) for the last few years (which causes inflation) to the tune of £375bn a month. A bit of inflation because the pound has slipped on the money markets (not too much mind you) might be a good thing?

.. because whilst property values might drop in the country, they will bounce back. It’s only a paper loss.. because it only becomes real if you sell. And if you have to sell, again as most people move up market when they sell, whilst your property might have dropped by 5% or 10%, the one you want to buy would have dropped by the same 5% to 10% .. and here is the best part – (and work your sums out) you would actually be better off because the more expensive property you would be purchasing would have come down in value (in actual pound notes) than the one you are selling.

The Warrington landlords of the 4,701 Warrington buy to let landlords have nothing to fear neither, nor do the 11,612 tenants living in their properties.

Buy to let is a long term investment. I think there might even be some buy to let bargains in the coming months as some people, irrespective of evidence, panic.  Even if we pull up the drawbridge at Dover and immigration stopped today, the British population will still increase at a rate that will exceed the current property building level. Britain is building 139,600 properties a year, but needs according to the eminent ‘Barker Review of Housing Supply Report’, the country needs to build about 250,000 properties a year to even stand still, and as the the birth rate is increasing, the population is living longer and just under a quarter of all UK households now are occupied by a single person demand is only going up whilst supply is stifled. Greater demand than supply equals higher prices. That is definitely a fact.

So, what will happen next?

Well, there are many challenges ahead. The country has spoken and we are now in unchartered territory – but we have been through a couple of World Wars, an Oil Crisis, Black Monday, Black Wednesday, 15% interest rates and a Credit Crunch … and we survived!

And the value of your Warrington property? It might have a short term wobble… but in the long term -it’s safe as houses regardless.

As always, if you would like to talk about this particular article or anything property related then feel free to drop me an email on manoj@hamletwarrington.co.uk or call on 01925 235 338. If you are in the area then feel free to pop in and meet the team at 6 Bankside Crosfield St, WA1 1UP. We are right opposite Bank Park.

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/

Ex-council Properties in Warrington: Are they good buy-to-let investments?

Over the last few weeks I have had phone calls from southern investors who found my blog through the power of social media.

One of the investors actually started to ask me about the ‘deal of the day’s as he noted that I don’t post about them as much as I used to. He also noticed a lot of the high yielding property I talk about on the blog tend to be ex council houses. This does not mean that the only high yield in Warrington are ex-council houses.

The Numbers

One thing I can honestly tell you is that ex-council properties can achieve annual yields of around 7-9% in Warrington. However, their average value tends to stay quite stable when we compare this to the average capital growth on the more modern estates of Chapleford Village and Kingswood (Westbrook), which have had a more significant rise.

Nevertheless, a three bedroom, semi-detached property on Gerrard Ave sold for £72,500 in 2015. It was sold again earlier this year for £81,000, which is a return of 11.7% in less than 11 months.

 

Another example of good capital growth from an ex-council property is a three bedroom terrace on Lostock Ave which was sold in January of last year for £84,000. It has had an increase in value of around 15% in just over a year – that’s to say, it’s now worth £96,500.

The best performing property for capital growth in 2016 so far was bought in September 2013 for £152,500 and sold recently for £185,000 (Feb 2016). This is a significant return of 21.31%! However, this was not an ex-council property; it was a 4 bedroom semi in Penketh.

If you would like some advice about buying to let, please come and see us at our offices.

If you are interested in seeing these high yielding deals, I am now mostly putting these together in private emails to a list of investors who have asked me to create a list. This list is open to anyone who would like to join and you will receive weekly deals in the Warrington Property Market. If you have already opted in to the list then please email me again as the old list is mixed in with my monthly newsletter list so I would need to identify you and put you in my New Premier Investor List.

You can email me on manoj@hamletwarrington.co.uk as always, our doors are always open. Feel free to pop in to our office at 6 Bankside, Crosfield St. There is plenty of parking available and the kettle is always on.