Tamworth Road … the road where people move the most in Tamworth!

Many folks say moving home is the most stressful thing.Moving home is like someone (and that someone is usually you and you are the cause of this devastation) has collected all your worldly goods, put them into brown boxes and into a lorry making your whole life look like a Amazon delivery van, only to spend the next six months unpacking it all, whilst unable to find important things like your bank cards, ‘those’ shoes or special jewellery!

We wish we could be instantly transported like in Star Trek “Beam me up Scotty to a blissful moved in state”.  Yet the week you move, it’s like an episode from the original 1960’s series Star Trek, when the crew had a transporter accident with an ion-storm sends Kirk and Spock into an alternate reality, where the caring Federation is the merciless Terran Empire, and the USS Enterprise is a warship and chaos eschews!!!

Star Trek aside, when you decide to move and before the stress of living out of cardboard boxes for months descends; first you trawl the portals (Rightmove/Zoopla/On The Market) to find a new house, which out of the hundreds of properties available to buy, you will probably only view around four or five of them, for no more than 20 minutes each. Then, you will arrange a second viewing of one or two of those initially viewed properties for the estate agency industry stated average of 30/45 minutes maximum (fascinating when you think most people take hours to decide what clothes or shoes to buy but minutes to spend hundreds of thousands of pounds on their next home!).  Then you put your property on the market with an estate agent, find a buyer for your Tamworth property, agree a price for both, then instruct solicitors. The property becomes sold ‘subject to euphuism’ … sorry ‘contract’ … as solicitors and surveyors and mortgage companies pick holes in the paperwork, threatening to wreck the chain at any moment, whilst you can’t get too attached to the property you want to purchase in case the sale falls through … phew – stressful or what??!!

Is it worth it? Worth the stress? The brown cardboard boxes? Well many Tamworth people think so.

In the last 12 months, 629 families have sold and moved home in Tamworth (B77)

Yet the question I want raise is … do people on certain streets in the B77 postcode move more often than others? Well, the answer might surprise you. I looked at the Land Registry for the all the property sales going back 23 years (to 1995) in the B77 postcode whilst also calculating the average value of a property on a particular street/road (to see if there was a correlation between price and moving). So initially looking at the top 10 streets in the postcode, in terms of pure out and out house sales, Tamworth Road is the winner with an average of 22.17 house sales per year (since 1995) as on the graph below.

And to look at the bigger picture, the table below shows the top 25 streets, with the average value of a property on that street.  As you can see, there is no correlation between the average value of a property and the number of times a property gets sold on that street.

Street Average Value of a Property
On that Street/Road
Average Number of
Properties Sold per Year (since 1995)
Tamworth Road £175,855 22.17
Celandine £181,733 11.04
Furness £145,066 10.52
Peel Drive £174,471 10.00
Kettlebrook Road £134,067 9.70
Glascote Road £158,820 8.57
Hockley Road £169,509 8.43
Sycamore £144,656 8.17
Grazier Avenue £172,175 7.30
Brambling £149,886 7.09
Ascot Drive £255,583 7.09
Emberton Way £263,000 7.00
Moor Lane £130,773 7.00
Foxglove £160,665 6.70
Loughshaw £156,628 6.65
Watling Street £134,811 6.78
Lindisfarne £234,523 5.87
Goldsborough £146,119 5.91
Amington Road £153,416 5.87
Wilnecote Lane £161,259 5.61
Quince £138,920 5.57
Greenheart £160,455 5.43
Grassholme £142,813 5.48
Broadlee £253,987 5.30
Valley Drive £204,703 5.13

However, I still felt the information wasn’t telling the whole story … some roads in Tamworth have many more properties on than others, so I wanted to then compare the average number of properties sold by the actual number of properties on that street, to find out the streets whose owners proportionally moved (or sold more often) than the rest of the locality.

In the next article, (and I promise I won’t mention Star Trek again), I will answer that question in great depth … and the results should (as they did me) certainly raise an eyebrow. The question is … do you live on one the top 25 Tamworth most saleable streets in Tamworth (B77)?  

Come back to my Tamworth Property Blog for the next articleto find out!

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. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

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

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Tamworth First Time Buyers Need 7.1 Times Annual Salary to Get on Housing Ladder

welcome to Tamworth
welcome to Tamworth

What is it to be British? Our stubbornness, long-suffering stoicism, our vexation at injustice, our obsession with football and rugby, we are weather obsessed external awkward noncommittal modest people whilst underneath seething like a volcano because someone jumped the queue….. and our No.1 obsession is with the property ladder.

This ‘love affair’ with owning our own home has been both good and bad for the UK as a whole. This has given people financial freedom in their later years whilst also reducing the quantity (and quality) of housing provision whilst adding the extra pressure of a ‘them and us’ society. Strong words I know .. but let me explain more.

I honestly believe that most Governments since the end of the 1970’s, Conservative and Labour, have attempted to nourish our addiction to home ownership (to keep the housing market on track) with the Council House Right to Buy sell off in the 1980’s, tax relief of mortgages, relaxation of the mortgage rules in the late 1990’s/early 2000’s and most recently, the Help to Buy scheme.

But the Brits haven’t always had this obsession.

Roll the clock back 100 years and, in 1918, just under a quarter of all Brits owned their own homes and the other 77% rented. Go back 50 years to 1968, and only 46% of people owned their own home, the rest rented. This homeownership thing is quite a recent phenomenon.

According to my research, anyone looking to get a foot onto the property ladder as a first-time buyer in Tamworth today, AS A SINGLE PERSON, would need to spend 7.1 times their earnings on a Tamworth first time buyer property.

Using the numbers from the Office of National Statistics (ONS), the average value of a first-time buyer property in Tamworth today is £139,000, compared to £116,000 in 2007. If we divide those property values by the average annual earnings of first time buyers – in 2007, that was £17,281 pa and that has risen to £19,673 pa .. giving us the ratio of 7.1 to 1.

However, what must be remembered is that these are raw statistics from the ONS and don’t take into account other factors, like most people buy their first home as a couple. Also, mortgage rates are at an all-time low and who can remember mortgage rates of 15%+ in the 1990’s, meaning borrowing today is relatively cheap. Also, 95% Loan to Value first time buyer mortgages have been available since the end of 2009  (i.e. you only need to save a 5% deposit) and first time buyer rates of 2.19% fixed for 5 years can be obtained (correct at time of writing this article)… it is cheaper to buy than rent .. fact!

I believe there has been a mind-set change to owning a home. Home ownership was the goal of the youngsters in the latter half of the 20th century. Britain is changing to a more European model of homeownership, where people rent in early to mid-life, wait to inherit the money from their parents when in their 50’s and then buy.. thus continuing the circle – albeit in a different way to the last Century.

This means the demand for privately rented accommodation will, in the long term, only continue to grow. If you would like to know more about where the hot spots are for that growth in Tamworth, then one place would be my property blog www.tamworthpropertyblog.co.uk or if you want to drop me an email or telephone call, feel free to pick my brain on the best places to buy (and not to buy) in Tamworth to ensure your rental investment gets you want you want. The choice is yours!

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. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

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

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Ask Lorraine – Abandoned items by my Tamworth tenant!

Ask Lorraine  – My tenant has vacated the property and left a single bed, a washing machine, a bicycle and a wardrobe full of mens clothes. I have tried to contact her but her phone number appears to have been disconnected!

Is the law on my side, can I dispose of everything at the local tip?

Ben

Lorraines Answer  – There are many scenarios :-

  • A tenant has left furniture or personal items.
  • A vehicle has been abandoned on your property.
  • Students have moved out of your property and items have been left behind and you aren’t sure who they belong to.

Should items be left on your land or in your property you cannot simply remove them unless you have given the owner reasonable notice of your intention to remove and dispose of the goods.  It may seem ridiculous, however, this also includes trespassers leaving items.

Make a list/inventory with lots of photographs of any items which have been left. Make contact with the person/s concerned providing the information below.  If you are unable to contact them, you should make a couple of signs with the following information:

  • Your name and contact details
  • A list of the items
  • Any fees  you intend to charge for storage upon collection of the goods
  • A reasonable timescale for collection, 14 days is the norm.
  • Where the items will be sold if this is your intention, and any storage cost incurred that will need to be repaid

Post the sign on the inside of a ground floor front window so that it can be seen and post the other sign on the rear access door (if appropriate)  and take photograph evidence of the signs in situ so that if you are asked you can provide evidence you have carried out the steps outlined.

Once the 14 days in either case has passed, you can now sell or dispose of the items.

Retain details – how you have disposed of the items.

Until next time.

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The eGuide will then be messaged to you instantly after a few clicks and your contact details are not needed.

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Tamworth Property Market: Is Sell to Rent the new Buy to Let?

It doesn’t seem two minutes ago that it was 90 degrees Fahrenheit in the shade (32 degrees Celsius for my younger readers), hosepipe bans looked likely and it was simply too hot to sleep at night, yet early indications were, that as the temperatures soared, the Tamworth property market appeared to be doing the reverse and was already starting to cool down.

8.49% less people moved home in the Tamworth area in the first part of 2018, when compared to the average number of people moving home (in the same time frame) between 2014 and 2017

The average number of households who sold and moved locally between 2014 and 2017 in the winter and spring months was 82 homes a month.. yet in the same time frame in 2018, only 75 (on average) sold and moved.

So, what is the issue? Many have cited Brexit as the issue – but I think its deeper than that.

Brexit seems to be the “go to excuse” for everything at the moment – my neighbour even blamed it for the potholes! Anyway a few weeks ago, I was out for a family get together in another part of the UK when one of my extended family said that they were planning on buying their first home this autumn most of those present said they were stupid to do so because of Brexit. Nonetheless, half an hour later, another distant cousin said to the same family crowd that they were planning to sell their home; to which most said they were also daft to do so because of Brexit.

Both sides of the argument can’t be right! So, what exactly is happening?

Well if you have been reading my blog on the Tamworth property market over the last few months, I have been discussing the threats and opportunities of the current state of fluidity in the Tamworth property market, including the issue of OAPs staying in homes that are too big for them as their children have flown the nest, interest rates, inflation, lack of new homes being built and the long term attitude to homeownership.. yet I have noticed a new trend in the last few months.. the emergence of the ‘sell to renter’.

Sell to Renter?

I have seen a subtle, yet noticeable number of Tamworth homeowners that have been selling their Tamworth homes, renting and wagering that, in the next few years, the Tamworth property market will tumble by more than what they spend on their short-term rental home, before they buy another Tamworth home in a couple of years i.e. a ‘sell to renter’. This type of ‘sell to renter’ is mostly predominant at the middle to upper end of the Tamworth property market – so I’m not too sure if it will catch on in the main ‘core’ market?

So, what does this all mean for Tamworth homeowners and Tamworth Buy To Let landlords?

Well, in the short term, demand for middle to upper market Tamworth rental properties could increase as these ‘sell to renters’ demand such properties. I would however give a note of caution to Tamworth landlords buying in this sector of the Tamworth property market as yields in this sector can be quite low. However, for homeowners of middle to upper market Tamworth properties, you might have less people wanting to buy your type of property, as some buyers are turning to renting?

Like I have always said, Tamworth properties are selling if they are realistically priced (realistic for the market – not a rose-tinted version where someone will pay 10% over the odds because everyone has access to the market stats with the likes of Rightmove and Zoopla!).

P.S Notice the spike in the graph, where the number of property sales jumped to 164 in the month of March 2016? That was all the Tamworth buy to let landlords snapping up buy to let properties before the stamp duty rules changed!

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Great(er) Expectations: Why Tamworth Home Sellers are Having to Reduce Their Asking Prices by an Average of £11,600 Each

As we head for the winter months, some interesting statistics have come to light on the Tamworth Property Market which will be thought provoking for both homeowners and buy to let landlords alike.

Over the last 12 months 1,190 households have changed hands in Tamworth, interesting when compared with the 10-year average of 1,128 households per year.

Overcooked house prices

 

Yet, for the purpose of this week’s article, I want to discuss the pricing of the current crop of Tamworth’s property sellers and the prices they are asking for their homes and the prices they are achieving (or not as at the case may be). It is so important for all property owners to know the real story, so they can judge for themselves where they stand in the current Tamworth housing market, thus enabling them to make suitable and informed decisions… and that is why, in my blog about the Tamworth Property Market, I pride myself in telling the people of Tamworth the real answers, not just the ones they want to hear.

The national average of homes selling at or above the asking price currently stands at around 10%, so around 90% go below the asking price – but by how much? Well according to Rightmove, in the Tamworth area, the average difference between the ‘FINAL asking price’ to the price agreed is 2.5% … yet note I highlighted the word FINAL in the last statement.

You see some Estate Agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a greater chance to secure the property on that agent’s books, as opposed to a competitor. This practice is called overvaluing. Now of course, each homeowner wants to get the most for their property, it is quite often their biggest asset – yet some agents know this and prey on those house sellers. You might ask, what is the issue with that?

Well, you only get one chance of hitting the market as a new property. Everyone has access to the internet, Rightmove and Zoopla etc, and your potential buyers will know the market like the back of their hand. If you have a 3 bed semi that is on the market for a 3 bed detached house price.. those buyers will ignore you.

If your Tamworth property sticks on the market, potential buyers will keep seeing your Tamworth property on Rightmove each week, then start to think there is something wrong with it, dismiss it even further, until you, as the house seller have to reduce the asking price so much (to make it appear inexpensive) to get it away. According to our own research, the average house buyer only views between 4 and 5 houses before buying – so don’t assume viewers will come round your optimistically priced (i.e. overvalued) property, thinking they will knock you down – no quite the opposite!

So how widespread is overvaluing in Tamworth? The results might surprise you …

32.8% of properties in Tamworth, currently on the market, have reduced their asking price by an average reduction of 4.8% (which equates to £11,600 each)

So, all I ask is this.. be realistic and you will sell at a decent price to a decent buyer. First time – every time – enabling you to move on to the next chapter of your life.

Happy House Hunting.

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Tamworth House Prices vs Tamworth Rents since 2006

The Tamworth 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 Tamworth, the market has certainly changed for both buyers and sellers alike (be they Tamworth buy to let landlords, Tamworth first time buyers or Tamworth owner occupiers looking to make the move up the Tamworth property ladder).

Tamworth house values are 7.67% higher than a year ago, and the rents Tamworth tenants have to pay are 1.6% higher than a year ago

When we compare little old Tamworth 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, Tamworth house values are 35.36% higher, yet the rents Tamworth tenants have had to pay for their Tamworth rental property are 17.7% higher

Rent Vs House Prices
Rent Vs House Prices

 

…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Tamworth tenants are 24.3% 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 Tamworth house values (in red) in the years of 2008 and 2009 … yet as Tamworth property values started to rise after the summer of 2009, see how Tamworth 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 Tamworth property.

However, maybe an even more interesting point is for the long-term Tamworth buy to let landlords. The performance of Tamworth rental income vs Tamworth house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it’s true Tamworth 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 Tamworth buy to let portfolio. More and more I am sitting down with both Tamworth 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 Tamworth 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.

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My Tamworth letting agent is unwilling to release deposit to me?

Ask Lorraine

confused
confused

I have two properties, one in Tamworth and the other in Hinckley.  The local one has always been managed by a letting agent and the Hinckley property, I manage myself due to a friend renting the flat.

I decided some time ago to take over the management myself and duly gave 3 months notice to the letting company that I wished to do so. At that time I also informed them that I would like to hold the deposit and put it into my own scheme.

This seemed fine at the time and they confirmed in email, their agreement to this, getting my tenant’s agreement that the deposit could be held in my scheme.

I received the last month’s rent from the letting agent yesterday, but no deposit monies. I have telephoned them to ask where it is and they say they will not release the money to me until I have registered the deposit with my own scheme and given them proof that I have done this.

Can anybody advise me whether this is right?

Lorraine’s Answer

The letting agent is responsible to the tenant for the deposit and as you are breaking all ties with the agent, I can understand they are unwilling to release the deposit directly to you without a guarantee that it will be protected.

Register the deposit with your scheme and send the agent  the details, they will then transfer the deposit into your account.

Until next week.

 

 

 

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Ask Lorraine – My Tamworth Landlord has died, what happens now?

Ask Lorraine – Please can you help?  We have been told that our landlord has suddenly died, what does this mean for me and my family? Are we going to be thrown out of our home of nearly 6 years.

Thank you  Les & family

Lorraine’s Answer –  Hi, Les

For you the tenant, nothing changes in the short term,  you cannot be evicted as long as you keep paying the rent. So I would say “don’t panic” and rush along to the Citizens Advice Bureau, the law is already on your side.

rest in peace
rest in peace

The tenancy becomes part of the landlords estate with the  tenancy continuing. Once Probate has been granted then the tenancy passes to the landlords beneficiary/beneficiaries who will become the new landlords.

Granting Probate can take a considerable time, often months in fact, so even if the new landlord is not willing to renew the tenancy, the tenant will have plenty of time to look at their options.

The new landlord will look at his/her personal circumstances as to what happens once Probate has been granted. Should they continue to rent the property to the existing tenant nothing will change except that the new landlord must inform the tenant in writing of the change to the landlords details.

When the tenancy is up for renewal, the next agreement will be with the new landlord. Should the tenancy already be a periodic tenancy, the new landlord may leave as is – this is when neither party signs another agreement.

If the tenant wants to leave, they must give one months written notice, whereas the landlord must give at least two months written notice.

If there is more than one beneficiary, a property may need to be sold so that the proceeds can be divided between them. The tenant is still entitled to stay in the property until the end of the tenancy. As it can take  some time for Probate to be granted and then for the property to be put on the market and sold, the tenant has time to find a new home for when the tenancy ends.

It may be that the new owner would wish to purchase the property with a tenant in situ. A win win situation on both sides – the tenant keeps his home and the new owner has rental money coming in straight away.

Every case is different and flexibility is the key.

Until next time.

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7 Reasons Why Tamworth Buy To Let Landlords Shouldn’t Be Criticised

There is no escaping the fact that over the last couple of decades, the rise in the number buy to let properties in Tamworth has been nothing short of extraordinary.  Many in the “left leaning” press have spoken of a broken nation, the fact many youngsters are unable to buy their first home with the rise of a new cohort of younger renters, whom have been daubed ‘Generation Rent’ as landlords hoover up all the properties for their buy to let property empires. Government has been blamed in the past for giving landlords an unfair advantage with the tax system. It is also true many of my fellow professionals have done nothing to avail themselves in glory, with some suspect, if not on some rare occasions, downright dubious practices.

Yet has the denigration and unfair criticism of some Tamworth landlords gone too far?

It was only a few weeks ago, I read an article in a newspaper of one landlord who had decided to sell their modest buy to let portfolio for a combination of reasons, one of which being the new tax rules on buy to let that were introduced last year. The comments section of the newspaper and the associated social media posts were pure hate, and certainly not deserved.

Like all aspects in life, there are always good (and bad) landlords, just like there are good (and bad) letting agents … and so it should be said, there are good tenants and in equal measure bad tenants. Bad letting agents and bad landlords should be routed out … but not at the expense of the vast majority whom are good and decent.

But are the 1,290 Tamworth portfolio buy to let landlords at fault?

The Tories allowed people to buy their own Council house in the 1980’s, taking them out of the collective pot of social rented houses for future generations to rent them. Landlords have been vilified by many, as it has been suggested by some they have an unhealthy and ravenous avarice to make cash and profit at the expense of poor renters, unable to buy their first home. Yet, looking beyond the headline grabbing press, this is in fact ‘fake news’. There are seven reasons that have created the perfect storm for private renting to explode in the 2000’s.

To start with, the Housing Acts of 1988 and 1996 gave buy to let landlords the right to remove tenants after six months, without the need for fault. The 1996 Act, and its changes, meant banks and building societies could start to lend on buy to let properties, knowing if the mortgage payments weren’t kept up to date, the property could be repossessed without the issue of sitting tenants being in the property for many years (even decades!) … meaning in 1997, buy to let mortgages were born… and this, my blog reading friends, is where the problem started.

Secondly, in the early 2000’s, those same building societies and banks were relaxing their lending criteria, with self-certification (i.e. you did not need to prove your income), mortgages 8 times their annual salary, and very helpful interest only mortgage deals helped to keep repayments inexpensive.

Thirdly, the totally inadequate building of Council Houses (aka Local Authority Housing) in the last two decades and (so I’m not accused of Tory bashing) – can you believe Labour only built 6,510 Council Houses in the WHOLE OF THE UK between 1997 and 2010? Giving the Tories their due, they have built 20,840 Council Houses since they came to power in 2010 (although still woefully low when compared the number of Council Houses built in the 1960’s and 1970’s when we were building on average 142,000 Council Houses per year nationally). This meant people who would have normally rented from the Council, had no Council House to rent (because they had been bought), so they rented privately.

And then 3rd, 4th, 5th, 6th and 7th

 

  • Less of private home building (again look at the graph) over the last two decades.

 

  • A loss of conviction in personal pensions meaning people were looking for a better place to invest their savings for retirement.

 

  • Ultra-low interest rates for the last nine years since the Credit Crunch meaning borrowing was cheap.

 

  • A massive increase in EU migration from 2004, when we had eight Eastern European countries join the EU. That brought 1.4m people to the UK for work from those countries – and they needed somewhere to live.

Thus, we got the perfect storm conditions for an eruption in the Tamworth Private Rented Sector.

Commercially speaking, purchasing a Tamworth property has been undoubtedly the best thing anyone could have done with their hard-earned savings since 1998, where property values in Tamworth have risen by 225.91%…

…and basing it on the average rental in Tamworth, earned £154,440 in rent.

Yet, the younger generation have lost out, as they are now incapable to get on the property (especially in Central London).

The Government have over the last few years started to redress the imbalance, increasing taxes for landlords, together with the Banks being tighter on their lending criteria meaning the heady days of the Noughties are long gone for Tamworth landlords. In the past 20 years, anything but everything made money in property and it was easy as falling off a log to make money in buy to let in Tamworth – but not anymore.

Being a letting agent has evolved from being a glorified rent collector to a trusted advisor giving specific portfolio strategy planning on each landlord’s buy to let portfolios. I had a couple of instances recently of a couple of portfolio landlords, one from Drayton Bassett who wanted income in retirement from his buy to let’s and the other from Elford, who wanted to pass on a decent chunk of cash to his grandchildren to enable them to buy their own home in 15/20 years’ time.

Both of these landlord’s portfolios were woefully going to miss the targets and expectations both landlords had with their portfolios, so over the last six/nine months, we have sold a few of their properties, refinanced and purchased other types of Tamworth property to enable them to hit their future goals (because some properties in Tamworth are better for income and some are better for capital growth) … And that my blog reading friends is what  ‘portfolio strategy planning’ is!

If you think you need ‘portfolio strategy planning’, whether you are a landlord of ours or not (because the Elford landlord wasn’t)  … drop me line or give the office a call. Thank you for reading.

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. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

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

Blog  – https://www.Tamworthpropertyblog.co.uk

Facebook – – https://www.facebook.com/hallandthompsonestateagents

Twitter – https://twitter.com/hallandthompson

Website  –  https://www.hallandthompson.co.uk

3.3% Drop in the Tamworth Property Market

The number of residential property transactions in Tamworth will be 3.3 per cent lower in 2018, compared to 2017. 

According to my research, the seasonally adjusted statistics for our local authority area suggest with the number of properties already sold in 2018, and the number of properties currently under offer or sold subject to contract (allowing for property sales to fall through before exchange of contracts) we, as an area, will end the year 3.29 per cent lower compared to 2017.

So why are transaction numbers so important to Tamworth homeowners, Tamworth landlords and potential first-time buyers?

Many economists and property market commentators believe transaction numbers give a more precise and truthful indicator of the health of the property market than just house values. In the six years before the Credit Crunch in 2007/8, the average number of completed property transactions in the local area (the local authority covered by Tamworth) stood at 1,548 per year .. yet in the three years following the Credit Crunch, on average, only 668 homes were changing hands per year in the area.

Roll the clock forward to more recent times and last year, in 2017, 1,192 homes changed hands (i.e. transacted and sold) in the area, not far off the local authority’s 23 year overall average of 1,250 homes per year.

In the past, a reduction in the number of properties selling has often been believed to be the first signal of a down turn in the housing market as a whole. Although, the down turn of the credit crunch years (2007/2008) was more a free-fall than a subtle down turn. Look at the graph and the ‘so-called’ halcyon days of the 2000 to 2006 property market were a roller coaster when it came to the number of transactions. House prices were rising in the six/seven years before the credit crunch (2000 to 2006), albeit, the rate of growth of Tamworth house prices did slow in late 2005 and 2006 (which does fit in nicely with the graph).

In other articles, I have mentioned the change in the number of houses for sale today compared to last year and further back. Although, the market has seen in recent months (i.e. the short term) an increase in the number of properties for sale, fundamentally, in the medium term, there has been an underlying trend in the reduction of properties coming onto the market for sale in Tamworth (and nationally) and this has been one of the main drives behind the lack of properties selling .. Tamworth people aren’t moving as much as they were 30 years ago meaning fewer houses are selling each year.

However, this short-term increase in properties for sale hasn’t been even across the board. In certain sectors of the Tamworth property market, there is a glut of properties on the market at the moment and so prices and values are dropping on those types as sellers compete for the limited amount of buyers… yet, there are other sectors of the Tamworth property market where there is a dearth, a shortage of property, and buyers are fighting tooth and nail with silly offers to try and secure the sale. This means, there are some bargains for you Tamworth buy to let landlords. If you look hard enough, you could spot the same trends I have seen in Tamworth and find the individual property micro markets that fall into that first sector (with its glut).

So, if you want the inside track on the Tamworth property market, whether you are a landlord of ours or another agent, I am more than happy to guide you in the right direction if you drop me a line or an email (contacts details are easily found on this page – and I don’t bite or do hard sell – promise!).

So, to conclude, I believe we will finish on 1,153 housing transactions by the end of the year in the area .. not too far off last year’s figure or the long-term 23-year average. Looking at the short term future, now it’s true some (not all) but some potential purchasers of property in Tamworth may be exhibiting more caution because of concerns that the Bank of England will continue to put up interest rates– to which I reply – yes of course they will when they are only ultra-low at 0.75%. Anyway, that is the reason why 90%+ of new mortgages over the last nine months have been on a fixed rate. Also, if they do go up a few percentage points – they are nothing compared to the 12%, 14%, even 15% mortgage rates many of my landlords saw in the early 1990’s.

We can all speculate (and I appreciate the irony of that as I write this article) but all I say to any Tamworth landlords, Tamworth homeowners or Tamworth first time buyers is act according to your own life cycle, budget on a modest increase in interest rates in the coming few years (yet protect yourself by fixing it), consider your own circumstances and finally, what you can afford.

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. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

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