Thursday, 30 March 2017

Only 442 Warrington Properties for Sale

Capital Growth in Warrington, Investment Properties in Warrington, Letting agents in Warrington, Warrington Buy To Let, Warrington Property Investments

2017 has started with some positive interest in the Warrington property market.

Taking a snap shot of the Warrington property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Properties for Sale in Warrington

Let us first consider the number of properties for sale, compared to 12 months ago:

When we add building plots and other types of properties that don’t fit into the four main categories, there are 442 properties for sale today, compared with 609 a year ago. This is a drop of 27%.

Compared with a year ago, Warrington asking prices are 5% higher.

Land Registry Figures

With that in mind, I wanted to look at what property was actually selling for in Warrington. Taking my information from the Land Registry, the last available six months property transactions for WA5 show an interesting picture. (Note: the Land Registry data is always a few months behind due to the nature of the house buying process, so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.

So what does all this mean for the property owning folk of Warrington?

Well, with fewer properties on the market than a year ago and asking prices 5% higher, those trying to sell their property need to be mindful that buyers – whether they are first timers, buy to let landlords or people moving up the Warrington property ladder – have much more information about the Warrington property market at their fingertips than ever before.

Those in Warrington who are looking to sell their property in 2017 should be aware of the risks of over pricing their property when initially placing it on the market.

Over the last 12 months, I have noticed the approach of a few Warrington estate agents is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books. The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and won’t waste their time asking for a brochure. They won’t even view the property, let alone make an offer. So when the price is reduced a few months later, the property has become market stale and continues to be ignored.

Whilst the Warrington property-market has an unassailable demand for property – there is one saying that always rings true - as long as the property is being marketed at the right price it will sell.

If you want to know if your Warrington property is being marketed at the right price, 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.

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

Thursday, 23 March 2017

‘Flipping’ Heck - Warrington Property Values Rise by £21.97 a day

Investing in Warrington buy to let property is different from investing in the stock market, or depositing your hard-earned cash with the building society.

When you invest money in the building society, this is considered by many as the safe option. However, the returns you can achieve are awfully low (the best 2-year bond rate from Nationwide is a whopping 0.75% a year!). While the stock market can give good returns, it’s a very ‘hands off’ investment - unless you are on the phone every day to your broker. It can also leave a feeling of lack of control.

Investment Properties in Warrington

“With buy to let, things can be more hands on.”

One of the things many landlords like is the tactile nature of property – the fact that you can touch the bricks and mortar. It is this factor that attracts many of Warrington’s landlords. They are making their own decisions, rather than allowing city whizz kids in Canary Wharf to play roulette with their savings.

Investing in property is a long-term game. When you invest in the property market, you can earn from your investment in two ways. When a property increases in value over time, it is known as 'capital growth/capital appreciation'. This has been strong in recent times in Warrington. The value of property goes up as well as down, just like shares do, but the initial purchase price rarely decreases.

Rental income is what the tenant pays you – hopefully this will also grow over time. If you divide the annual rent by the value (or purchase price) of the property, this is your yield/annual return.

Over the last 5 years, the average Warrington property has risen by £40,100 (equivalent to £21.97 a day), taking it to a current average value of £205,600. Yields range from 6% a year and can reach double digit percentages (although to achieve those sorts of returns, the risks are higher).

Flips in Warrington

However, something I haven’t really spoken of in detail before is the more specialist area of flipping property to make money.

“FLIPPING - buying a property, carrying out some minor cosmetics and re selling it quickly.”

I have seen several investors recently who have made decent returns from this strategy.

· One Warrington investor paid £125,000 for a three bed semi on Keyes Close in March 2016. It appears some cosmetic work was done to the property and it was resold a few months ago (November 2016) for £150,000.
That’s a 20.00% return before costs! (Or a compound annual return equivalent of 34.42% AER.) http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=43307643&sale=89153106&country=england

· Another Warrington investor flipped a lovely three bed detached property on St Bridgets Close, paying £159,950 in September 2016 and selling it again after some doing some cosmetic works. It was sold for £179,950 a few months ago (December 2016)!
That’s a 12.50% return before costs! (or equivalent 10.22% AER.)
http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=56283706&sale=89152779&country=england

This demonstrates how the Warrington property market has not only provided very strong returns for the average investor over the last five years, but how it has permitted a group of motivated buy to let Warrington landlords and investors to become particularly wealthy.

As I have mentioned before, more and more Warrington people may be giving up on owning their own home and are instead accepting long term renting. This leaves buy to let lending to grow from strength to strength. If you want to know what (and what would not) make a decent buy to let property in Warrington, then one place for such information would be the Warrington Property Blog.

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.

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

Thursday, 16 March 2017

Cheap Warrington Letting Agents May Cost You Your Wealth

Click here for a simple 5 step guide to switching agents

Bored one evening, I watched an episode of Watchdog. One of the stories was about a rogue letting agent, who, in simple terms, received rent payments and failed to pass them on to the landlords – instead claiming they had ‘defaulted’.

The link below is an example of what happened to an agent back in 2015 in Warrington.

Letting agency leaves Warrington landlords struggling

Letting Agents and their Fees

As you can see, this isn’t a new story to hit Watchdog (or the headlines for that matter), but it struck a chord with me.

So many people are quick to judge lettings agents and beat them down on their fees. In writing this blog I always try to maintain an impartial balance with my articles and buy to let information. ‘What’s the point?’ I hear you ask. The point is nothing new – you get what you pay for. You can find many examples in all walks of life that prove this very argument.

Have you ever wondered why some agents will reduce their fees to such a point to undercut everyone else? Perhaps it’s desperation…

You have to ask yourself: if an agent is so quick to slash their fees… why? Equally, are you truly going to receive the service that you are being promised? Will you deal with a dedicated department? Are they actually local and can they even point to Warrington on a map?

A Word of Advice

My advice is simple.

Hunt out a couple of good local agents – recommendation is always the best way. If you don’t know the local area, you can always look at letting agents’ reviews on sites like Google.

Ask specific questions about how they manage a property. How many staff are in that department? Are you allocated an individual account or property manager? Where are they based? Do they guarantee the rent? If so, how does it work? Can they guarantee the condition of the property? How do they deal with rent arrears? What are their referencing procedures? What regulations do you need to conform to? Are they a member of The Property Ombudsman for Lettings or an ARLA registered agent?

Can they give you details of a landlord that you can call to speak to about their experience? Or can they supply testimonials?

Whilst fees do come into play, they should not be the main focus when choosing an agent. May I suggest that if you can’t afford to pay an agent their worth, perhaps you should consider carefully about investing in property. Ultimately, choosing a good agent will save you in the long run and they are likely to be looking after one of your biggest assets.

Ask yourself this: can you afford to allow your home to be vacant or have a tenant residing in it without receiving income? More importantly… why should you?

A Cheap Warrington Letting Agent Example

I would like to leave you a link to a property forum going into more detail regarding the "rogue" agent very close to home in 2015. Click the link below for more information.

Warrington Landlords and Tenants Left in Distress

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.

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

Thursday, 9 March 2017

Are One Bedroom Flats in Warrington Good Investments?

I have written articles before with research on two bedroom flats in Warrington and whether they are sound investments.

At that time, I was approached by a Warrington landlord who had religiously stuck with the same strategy in his time as a Warrington investor – two up two down terraced houses. The research I did at the time was enough to convince Paul to stick to his original strategy with the old adage – if it’s not broken, don’t fix it.

However, I did very little research on one bedroom flats in Warrington, so I thought it would be nice to look at the numbers for an ideal one bedroom investment flat would look like.

Flat Statistics

There are over 21,000 flats in Warrington. This only represents around 7.5% of the housing stock here, with the national average being nearer 17.7%. The average price of a one bedroom flat in Warrington is around £85,000, which isn’t a whole lot different compared to two bedroom flats that come in at £95,000.

However if you do the right research, you can find one bedroom flats in Warrington for a very reasonable £60,000. If you were to invest in a flat like this, you can expect a rental income of around £395 per month. Even after paying the service charge, usually around £1000 per year, yields could reach around 6.2% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.

Now 6.2% is not as attractive as the yields you can achieve on a two bedroom flats – or the 8% plus you can achieve on a two up two down strategy (without all the extras such as the service and maintenance charges mentioned above).

Capital Growth

Finally, let’s not forget about the potential increase in capital value of the property. I started looking at the history of the one bedroom flats in the Finsbury Close development and found that they sold for around £47,500 at first, and then during the boom in 2006 they sold for around £85,000. This has dropped dramatically since. Over the last 10 years, you can see that the value of these flats has started to reduce and during 2015/16, the average sales are around £63,000 - £70,000.

Potentially, these flats could go back up to similar prices they sold at in 2006 in the future.

As we know, investing in property is not a get rich quick scheme. It takes a lot of time, hard work and much more. The numbers I have used are averages. If you can pick up a nice two bedroom flat in similar developments to Finsbury Close in Warrington for the right price, then you can look forward to some great growth.

As I always tell my landlords – you make your money on the purchase price.

Make sure you’re doing your research daily, as you don’t want to miss that perfect opportunity – and they do crop up in Warrington.

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

Thursday, 2 March 2017

Ask Andy - How to serve a valid Section 21 Notice in Warrington

Question:

‘Dear Andy,
I am an accidental landlord.
I rented my property out when I moved into my husband’s house about 6 years ago and we are now going through a divorce. I need my property back, so I know I will need to evict the current tenants.
How do I correctly serve a Section 21?
Thank you,
Sue.’

Andy’s Answer:

I am sorry to hear about the situation you are in. You are not on your own; this does happen from time to time. You would also be able to issue a Section 8 Notice as you have lived in the property previously, however I will talk about a section 21 notice today.

You must follow a set process when serving a section 21 notice to ensure it is valid. If you fail to do this, the possession claim can be dismissed by the courts and you must start the process all over again.

I am glad you emailed in with this question as it has now given me the chance to put this guide together.

What is a Section 21 Notice?

This is probably the most common way to evict tenants. It’s often called a “no fault’’ possession notice as a landlord does not have to give a reason for taking the property back. A section 21 can only be served under an Assured Shorthold Tenancy (AST).

When Can I Serve a Section 21 Notice?

You can serve a section 21 notice within a fixed term so long as the notice expires after the end of the fixed term, or it can be issued when the tenancy is periodic. You can also use an appropriate break clause to end the tenancy early; however this must be included in the tenancy agreement.

For tenancies which started one or after 1st October 2015, or became periodic on or after that date, you cannot serve the notice within the first four months of a six month term tenancy. For these tenancies, you must also use the new Form 6a notice.

Being Prepared – What to do before serving a Section 21 Notice.

The list below contains the mandatory requirements for a section 21 notice to be valid. You must have:

Protected the deposit correctly

Served the tenants the prescribed information

An AST agreement in place

A valid EPC and Gas Safety Certificate

Allowed the fixed term to come to an end, or used an appropriate break clause to end it

Served the tenants with the government guide, ‘How to Rent’

If the landlord has not done all six points in the list above, then the section 21 notice will be invalid. The courts may also need proof the notice was served, so having photographic evidence of the letter going through the door of the property or a picture of the tenants accepting the letter by hand helps.

If the property is a HMO (house of multiple occupancy), landlords must have a valid HMO licence to serve a valid section 21 notice. A HMO requires a license if there are more than five people over three stories, or the local council may require a mandatory license for HMOs of other sizes and specifications.

Click the image below and print it off, use this as your guide to serving a Valid Section 21 Notice.

If your tenants won’t leave after giving them the two months notice then you can apply for an accelerated possession order.

What’s an Accelerated Possession Order?

Usually the tenants will find a property within this time and leave peacefully – especially if you have a good tenant landlord relationship. However, it’s not always the case and further actions may need to be taken.

The accelerated possession procedure in conjunction with a section 21 notice often means landlords don’t have to go to court. A judge looks at the paperwork and, if everything is in order, grants a possession order with no hearing. Landlords can complete a form and submit this (along with other paperwork) online. There will be a fee to pay for this process.

It’s crucial all the paperwork is in order and the Section 21 Notice has been served correctly. If not, a judge may dismiss the case and the process must start all over again. If something is not right, or the tenant puts up a defence (they may argue they never received the notice), a judge can arrange a hearing. But if everything goes well, an order for possession will be granted.

What If Tenants Won’t Leave?

This is very rare; however I have come across this.

If the tenant has decided to dig their heels in and have not left by the date stated on the possession order, you must apply to County Court Bailiffs’ to remove them by force. There is another fee to pay for this process.

I hope this guide helps. I have handled many section 21 notices, so if you need a second opinion, feel free to get in touch.

Email me on andy@hamletwarrington.co.uk or give me a call on 01925 235 338. Pop in for a chat – we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.

-Andy

P.S. 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

Thursday, 23 February 2017

What risks are Warrington’s Accidental Landlords taking?

In today’s economy, there are plenty of tricks you can use to save money, but some landlords are taking that a step further. According to research from LV landlord insurance, there is a surge in ‘accidental’ landlords across Warrington as people are attempting to boost their income by letting properties privately to save on agency fees.

An Overview of Britain’s Landlords

Over 7% of adults in Britain rent out a property to help to supplement their income and receive an average of £678 per month. This equates to almost £28bn per annum across the country.

Landlords in London and the South East collect the highest (average) rents at £1,079 and £819 respectively. This is followed by the West Midlands at £678 and then East Anglia at £676.

The driving force behind this trend of 55% of accidental landlords (renting out property they never intended to) varies, from wanting a bigger property (15%), moving for work (10%) or even wanting a garden (6%)! Another 6% of landlords say they ended up renting out a property because they moved in with a partner and didn’t want to or couldn’t sell their own.

Landlord Responsibilities

Whatever the reason may be, all Warrington landlords must comply with current regulations and legislation.

All landlords must ensure that gas equipment (boilers, cookers, etc) are installed and checked annually by a registered Gas Safe engineer. All electrical installations must be safe. Tenant deposits must be held in a deposit protection scheme and some local authorities have mandatory licensing for landlords.

A managing agent will usually take responsibility to ensure that all legislation is complied with, for a fee, as well as check tenants and manage the rent collection, repairs, inspections and deal with the end of a tenancy. Almost half of today’s amateur landlords manage their rental property on their own and do not have such protection.

Of those self managing their properties, 27% have not had a gas safety check in the past twelve months and risk being prosecuted and fined up to £20,000.

Non-Compliance

As well as exposing themselves to fines from the local authority, Warrington landlords could find themselves heavily out of pocket if one of their tenants decides to make a claim against them. For example, a landlord could be sued by someone who falls and is injured because a pathway has not been maintained.

Landlords can also be liable for damage to adjacent properties, such as an overflowing gutter causing water damage to a neighbouring house. Analysis of the data shows that the number of liability claims being made against property owners has been steadily increasing in recent years.

Other Impacts

The insurance needs of a rented property are very different to those of an owner-occupied home. Standard home buildings insurance will not usually cover homes that are tenanted. Almost a third (32%) of Warrington landlords say their rental property has been damaged at some point and has had to be repaired, which has cost them £1,200 on average. Of those who have had their property damaged, the main cause has been damage by tenants (44%), followed by flooding (17%) and storm damage (8%). 19% of those who rent out houses – equivalent to over 400,000 landlords(UK) - do not have appropriate insurance in place and might not be covered should the worst happen.

Renting out a property can be a great way to cover your costs if you are unable to sell or want to hold on to a home and make some extra money from it, but it is not without risk. In order to mitigate those risks, we would always advise that you speak to a reputable agent who will help to guide you and show you how to protect yourself against many risks you may not have even considered.

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.

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

Thursday, 16 February 2017

Warrington First Time Buyers Borrowed £133.8m in the Last 12 Months

It might surprise you that first time buyers in 2017 will benefit from a slight decline in Warrington buy-to-let investors.

Starting with the bigger picture, over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 billion. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56 billion, so it can be seen the number of people moving house has dropped by over a third in the last decade.

Whether you are a landlord, homeowner or tenant, it’s always important to keep an eye on the Warrington property market. Over the last 12 months, 2,784 properties have sold (and completed) in Warrington, worth £522.9 million. Interestingly, the number of properties changing hands in Warrington has also dropped when compared to a decade ago.

How will the general Property Market be different in the coming months?

Those looking to buy a home in the spring and summer of 2017 will face a far less competitive Warrington property market than the same time of year in 2016, when the urgency to beat the buy-to-let stamp duty hike was in full swing.

Many landlords brought forward their purchases to beat the tax changes. Since the change, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures, this is what UK lenders have lent on buy-to-let properties versus first time buyers over the last 12 months:

Q4 2015 - £1bn buy-to-let mortgages vs £1.31bn for first time buyers

Q1 2016 - £1.35bn buy-to-let mortgages vs £1.08bn for first time buyers

Q2 2016 - £760m buy-to-let mortgages vs £1.28bn for first time buyers

Q3 2016 - £827m buy-to-let mortgages vs £1.42bn for first time buyers

What about the Warrington Property Market?

When looking at the figures for Warrington itself, first time buyers have borrowed more than £133.8 million in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Warrington economy. Those 20 and 30 something’s who are considering being first time buyers in 2017 will find that the number of properties on the market has never been as good as it has for quite a while, meaning you have more choice and less competition than a year ago.

Rightmove announced nationally that new seller enquiries are 26% up on the same time last year, giving an indication that we may see a slight ease in the lack of properties on the market. When I look at the Warrington market, at this moment in time there are an impressive 530 properties for sale, so plenty of choice.

All this will be welcome news amongst Warrington first-time buyers with a combination of a proportional reduction in new investors and landlords.

2017 will be an interesting year for all homeowners, be that buy-to-let landlords, existing homeowners or future homeowners. 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.

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

About Me

I have been in the Warrington property market since 2004, owning and running, the Hamlet Homes office in Warrington with my excellent team.

I have always shared my thoughts on the local property market in Warrington with my landlords, but now I want to share with everyone with an interest in property in Warrington.

In my blog, I will talk about what is happening in the Warrington property market itself, even looking at specific streets or housing estates. At other times, I will post what I consider decent buy to let deals. I like to look at the whole of market and give you, what I consider to be, the best buy opportunities.

If you see a potential deal, and want a second opinion, email the link to manoj@hamletwarrington.co.uk and I will always give you my honest opinion on the property and its investment potential – good or bad.