How do transport links affect the Warrington Property Market?

It isn’t always the most posh villages or the swankiest Warrington streets where properties sell and let the quickest. Quite often, it’s the ones that have the best transport links. There’s a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Warrington, I am frequently confronted with queries about the Warrington property market, and most days I am asked, “What is the best part of Warrington to live in these days?” (chiefly from new-comers).  Now the answer is different for each person – a lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Train Usage in Warrington

Official figures recently released state that, in total, 4,000 people jump on a train each and every day from Warrington’s Train stations. Of those, 962 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to Manchester is £1,692, a year.

So, if up to £1.63m is being spent on rail season tickets each year from Warrington, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place. That means demand for middle to upper market properties remains strong in Warrington and the surrounding area. In turn, these are the people happy to invest in the Warrington buy to let market – providing homes for the tenants of Warrington.

The bottom line is that property values in Warrington would be much lower (by at least 3% to 4%) if it wasn’t for the proximity of the railway stations and the people they serve in the town.

This isn’t a flash in the pan. Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested. This has resulted in a huge surge in rail travel.  

Why does this have an impact on property?

Overall usage of the station at Warrington has increased over the last 20 years. In 1997, a total of 1,336,573 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, the figure had risen to 2,912,188 people using the station.

That’s 8,001 people a day.

The positioning of the property and the train station has an important effect on the value and saleability of a Warrington property. It is also significant for tenants. So if you are a Warrington buy to let investor looking for a property, the distance to and from the railway station can be extremely significant.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station. That’s why Rightmove displays the distance to the railway station alongside each and every property on their website. 

For more thoughts on the Warrington Property market – 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. 

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

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Warrington Investment Property Specialist Hamlet Homes Website

How to Find the Right Warrington Letting Agent for You

There are an estimated 16,000 letting agents in the UK.

Some are large ‘corporate’ companies who own thousands of agents between just a few brand names. Some are independents with just one office, like us at Hamlet Homes. Others are franchised, where the individual owners are supported by a central office. We in Warrington have a good mixture of all three.  

So how do you find ‘the right one’? Surely they’re all cowboys, out to fleece the unsuspecting landlord in some way - aren't they?

What service are you looking for from your agent?

By law, since October 2014, lettings agents in England must belong to a redress scheme. From much of the marketing you see, it does appear that on the surface, most letting agents are the same. Most, for example, offer the same basic services: ‘let only’, whereby they just find you the tenant and you do the rest, and ‘full management’ where they look after your tenant and property for the duration of the tenancy.

However, just because they all offer the same services, it doesn’t mean they deliver them in the same way or work to the same standard.

As a landlord, there are various services you may need which are above and beyond the ‘standard’ offered by most agents. For example, some offer a successful ‘buy to let service’. This is where the agent helps landlords find the right property to let, at a price you can afford, delivering levels of rent achievable in the local area. You could do this through property investment clubs, but they tend to charge you thousands of pounds to ‘source’ a property and don’t always offer the discount claimed, nor is it always possible to achieve the rent they suggest.

We at Hamlet Homes offer a buy-to-let service based on our extensive knowledge of the area, won’t charge anything for our advice and time (providing the investor also puts in some leg work) and our main aim is to secure your property management business over the next 15-20 years, so your success is very much tied into ours.

How can you interpret the fees that agents charge?

Secondly the way letting agents charge is very different. The better agents provide both tenants and landlords with all the fees they are likely to charge.

Since 27 May 2015 in England, it is a requirement to display all fees upfront to landlords and tenants - but not all agents do. In Scotland, letting agents (and landlords) are banned from charging tenants fees, although again, some still do.

As letting agents charge for their services in different ways, it isn’t always easy to compare them.

What’s important is to be clear on how they charge, not just at the start of the tenancy, but to manage and re-let the property too.

Some agents charge landlords a fixed ‘admin’ set up fee, which may include just marketing the property and showing tenants around or include lettings basics such as a tenancy agreement, an inventory and protecting the tenant’s deposit. Other agents don’t charge a set-up fee, but charge a set commission based on the rent to find a tenant or for full management.

Agents’ charges become complex and potentially quite high where there are inflated prices for ‘additional charges’ and carrying out repairs.

For example, I find many letting agents who charge low commission fees to ‘attract’ landlords, such as 5% of the rent and then charge high costs for letting incidentals. They then pass on some of those costs to tenants by forcing them to re-apply (and pay again) to renew their tenancy, ultimately causing a higher number of tenant moves. For example they may charge a set-up fee, a low commission rate and then charge high prices for individual services needed such as a tenancy agreement, gas safety, EPCs, protecting the tenant’s deposit, inventories and more.

For you to compare costs on a ‘like for like’ basis, it is important to compare letting fees over a 12 month period:

·                     What does the ‘set up’ fee include? 

·                     What percentage uplift does the agent charge for individual     services?

·                     How much will the agent charge for management, renewal and check in/check out fees?

·                     What will it cost to organise repairs?

·                     Do they organise some repairs for free?

·                     Does the letting agent keep up with latest legal changes?

Keeping up with the Legislation

The final main difference between good agents and the not so good comes from keeping up with legal legislation for lettings.

Successive governments have been increasing the amount of legislation which affects landlords, letting agents and rented properties. To keep up with these legal changes requires substantial investment from letting agents. This is why many letting agents don’t bother.

Agents should ideally belong to an industry organisation such as the Association of Residential Letting Agents (ARLA); National Approved Lettings Scheme (NALS) ; Royal Institution of Chartered Surveyors (RICS) or Residential Landlords Association (RLA).

These organisations require the highest standards in lettings. For example, they need their agents to have ‘client money protection’ insurance which means if something goes wrong with the business, the rent collected by the agent is protected. It also means every time there are proposed changes to the law, the agent can respond. It’s not just knowing the law that’s important – it’s being able to interpret it correctly on your behalf, and at Hamlet Homes we pride ourselves on being at the very forefront of change.

So, although on the surface, agents do offer the same basic services, there are key differences when it comes to standards and pricing. At Hamlet Homes, we were members of a property ombudsman scheme prior to it becoming a legal requirement. Our fees are published on-line and in print for both tenants (here) and landlords (here) and we take our legal responsibilities seriously, so that you can be both protected from risk and advised of future compliance ahead of time.

Click here for a 5 step guide on how to switch agents

If you have any questions or want to know more about what (and what not) to look for when looking for a letting agent in Warrington, then 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

Warrington rents have risen by 13.1% since 2005

The Warrington Property Market is a very interesting animal. It has been particularly fascinating over the last 12 years, when we consider what has happened to Warrington rents and house prices.

What impact does Brexit have on the Warrington property market?

I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to methodically judge the possible ramifications for long-term investors in the Warrington property market. An important, yet overlooked, measure is the performance of rental income VS house prices (i.e. the resultant yields over time).

In Warrington – notwithstanding a slight drop in 2008 and 2009 – property rentals have been gradually increasing. The income from rentals has been progressively increasing over the last 12 years. Today, they are 13.1% higher than they were at the beginning of 2005. In fact, over the last five years, the average growth has been 0.7% per annum.

From a landlord’s point of view, increase in average rental income is not to be sneered at. However, the observant readers will be noting that we are ignoring an important factor – our friend inflation.

Turn the clock back to 2005 for a moment. Say we have a property being rented for say £900 a month, which is still being rented at £900 a month today. While the landlord is not getting any less income, this £900 is no longer worth as much.

In 2005, £900 may have bought a two-week 4* holiday in Italy. However, holidays have increased in line with inflation (which has been 38.5% since 2005), so our holiday would cost today £1,246 (£900 + 38.5% inflation = £1,246). Therefore, the landlord could no longer afford the same holiday, even though having the same amount in pound notes from their rental property.

In real terms, this means Warrington landlords are worse off today when they receive their monthly rental income, than they were in 2005 by 25.4% (rents increased by 13.1% since 2005, less the 38.5% inflation since 2005 – net affect 25.4% drop) 

What about the value of capital growth in investment properties?

However, rental income is not the only way to generate money from property as property values can increase. Although in the short term, cash flows are diminishing, many Warrington landlords may be content to accept that for a colossal increase in capital value.

Property values in Warrington have risen by 16.4% since 2005

This equates to a 1.36% per annum increase over the last 12 years. It’s even more interesting that this includes the 2008/9 property crash. This will make those Warrington landlords and investors feel a little better about the information regarding rents after inflation.

Moving forward, the prospects of making easy money on buy to let in Warrington have diminished, when compared to 2005. Last decade, making money from buy to let was as easy as falling off a log – but not anymore.

It would be true to say, my rental income verses property prices study does lead to noteworthy thoughts. I am often asked to look at my landlord’s rental portfolios, to ascertain the spread of their investment across their multiple properties. It’s all about judging whether what you have will meet your needs of the investment in the future. It’s the balance of capital growth and yield whilst diversifying this risk.

If you are investing in the Warrington property market, do your homework and do it well. While some yields may look attractive, there are properties in many areas that do not have the solid rudiments in place to sustain them. If you are looking for capital growth, you might be surprised where the hidden gems really are. Take advice, even ask your agent for a portfolio analysis like I offer my landlords.

The clear majority of agents in Warrington will be able to give a detailed analysis of past and anticipated investment opportunity (especially the awful effect of inflation) on your portfolio. However, if they can’t help – well, you know where I am and the kettle is on! 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. 

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

Warrington Property Q&A– I am unable to contact my Warrington tenant – HELP?

Landlord’s Question:

“Dear Andy,

I have a three bedroom buy to let property in Padgate which I currently have a repayment mortgage on and is currently let out. They are relatively new; the tenants have not been in the property for very long – for just over five months now.

The tenants have stopped paying the rent and have now stopped answering calls, texts and emails. It leads me to believe that they are avoiding my calls on purpose.

What can I do?

-Susan”

Andy’s Response

Susan, you are not the first landlord who has asked this question. This problem happens more than you would think. When things like this happen, we naturally assume the worst – that tenants are avoiding the problem and burying their heads in the sand.

Often there is a simple explanation. It may be that the tenant has changed their phone number or updated their email address and not provided it to you. We find that when tenants do change their contact details, letting agents and landlords tend to be much further down the list than their employers and doctors, etc. We have even had cases where tenants have had embarrassing email addresses or email addresses shared with a partner which become forgotten about or ignored after a break up.

When moving a tenant into your property we would always recommend obtaining contact details, both address, email address and phone number, for their next of kin. This might seem like unnecessary information at the start of the tenancy, however this may be needed when you least expect it. It’s also good practice in case of unfortunate situations where the tenant is no longer able to act for themselves, or requires someone to speak on their behalf (death, illness, when given a prison sentence, etc.).

My first port of call would be a quick call to the next of kin to ensure nothing serious had happened to the tenant and try and obtain alternative contact details – or at least get a message passed to your tenant. Please remember not to give out information you shouldn’t. This often works as the tenant is surprised to hear you have made contact with their family.

If the above doesn’t work, then I would be arranging a property inspection and advise the tenant if they are not there to give access then you would enter the property using the spare keys. Another vital point at the start of the tenancy: ensure you have spare keys.

However, please remember the following: 

• You cannot ‘just let yourself into the property’ without written notice
• If the property appears to be abandoned when you do gain access, unless the tenant has returned the keys to you, you still require a possession notice from the courts as the tenancy is still running. There is no such thing as an abandonment notice in the eyes of the law.

Hopefully one of the methods above will help you get in contact with the tenant and resolve whatever issues are present. Communication is key in a tenant landlord relationship.

Email me on andy@hamletwarrington.co.uk or give me a call on 01925 235 338. 

-Andy

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

Only 442 Warrington Properties for Sale

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

‘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.

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

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.

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