After the shock of the Conservatives returning to power with a majority vote, any uncertainties of a hung parliament has been lifted and landlords up and down the country are now asking – what does this mean for me?
Labour’s election promises of rent controls and three year tenancies had seen some Tamworth landlords holding off commiting themselves to adding to their buy to let portfolios. As a result the property market across the country had been subdued for several months, this being confirmed when speaking to local solicitors, surveyors and agents.
Well the growing buy-to-let market is unlikely to slow down under a Conservative government. Inflation in Britain hit -0.1% in April. In other words, prices – as measured by the consumer prices index (CPI) – fell by 0.1% over the past year. That’s the lowest level since 1960, as the papers keep telling us.
There has never been a better time for landlords and potential landlords to take a good look at the property market since mortgage rates are at their lowest levels since 2010. Pension pots are being released and landlords with large deposits will now be enticed by the mortgage industry as rates remain low.
Tamworth landlords have benefited from a booming local jobs market as Tamworth has seen the largest fall in unemployment of anywhere in the country in the last three years. The town’s unemployment rates have been plummeting since 2009 – and recent figures show that out of a population of 77,000 there are now just 286 people out the work. With evermore jobs and better pay there has been an increase in the rental price tenants are willing to pay for good Tamworth properties.
Landlords may be feeling a little nervous about the Conservatives plans for the housing market over the next few years, one of David’s plans is for Housing Association renters to have the right to buy their property, for those that do, they will be adding to the supply and demand of properties in the housing stock in many years to come.
Landlords were also worried about the Government “Help to Buy Scheme” however this hasn’t had a major effect on our local property market.
Tamworth is ever growing, meaning that there is a bigger demand for property than ever before. Renters are no longer classed as second class citizens as attitudes towards renting has changed considerably over the past 10 years. Youngsters no longer want to tie themselves down to a mortgage, their priorities are different than those of our parents so renting continues to offer good value for money for renters.
So what does the second largest town in Staffordshire offer in the way of house building in 2015?