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. In previous
articles, we have talked about Warrington’s history of rents, property values,
tenant demand and yields; all important matters for a landlord, but we haven’t
discussed the future.
Property values rose by 6.24% (Dec 13 to Dec 14) in Warrington. Good news all
round, but when you consider how property values in the town have previously
performed in the last 5 years, this is not as good as the media would have you
believe. The figures show that between Dec 2012 & Dec 2013, there was a 7.72%
increase, between Dec 2011 & Dec 2012 an decrease of 0.27%, between Dec
2010 & Dec 2011 a decrease of 5.14% and finally between Dec 2009 & Dec
2010 a increase of 7.06%!
It should be no great surprise to
hear that Warrington property values are starting slow up as we start the New
Year. Property values in the town were growing at a steady rate in the early
part of the year, but since October they slowed right down and decreased by
0.02%.
The reality is that we have had a year and a half of decent market conditions
in Warrington, but now all that pent up demand is starting to fade. The big
question moving forward is whether the Warrington market will now be held back
by affordability and restricted mortgage lending, and what long term impact
this will have on the Warrington property market.
Looking at the UK as a whole, because we can’t look at Warrington in just its
little own bubble, the recent rapid rise in house values in some parts of the
UK in the early part of the year (especially in London), along with earnings
growth that remain below inflation and the possibility of an interest rate rise
over the coming months, appear to have tempered housing demand. This weakening
in demand has led to a modest easing in both property price growth and sales. A
moderation in growth looks likely into next year as supply and demand become
increasingly better balanced.
Now with the General Election on the horizon, whichever Government takes power,
they, along with the Bank of England, have a thorny job to do in balancing the
expected rise in interest rates with the continued resurgence of the housing
market, to ensure the property market doesn’t drop and drag down the economic
recovery forcing people into selling their property at a loss.
However, back to Warrington; Long term property values which track peaks and
troughs are more helpful to landlord investors. The questions I seem to be
asked on an almost daily basis by landlords are:-
“Should I sell my property in Warrington,
or even buy another?”
“Is the time right to buy another
buy to let property in Warrington and if not Warrington, where?”
“Are there any property bargains
out there in Warrington?”
Many
other Warrington landlords, both who are with us and many who are with other
Warrington letting agents, like to pop in to our office for a coffee and to discuss
the Warrington property market and how Warrington compares with its closest
rival towns (Wigan, Bolton, St Helens etc.)
I don’t bite, I don’t do hard sell, I will just give you my honest and straight
talking opinion. Please email me at tpatel@hamlethomesproperty.co.uk or
call me on 01925 235338!
In the meantime may I take this opportunity to wish you all a Happy New Year.
