5.6% of Tamworth People live in Shared Households

I had  an interesting chat the other day with a Tamworth homeowner. He said he had been chatting with an architect friend of his who said back in the mid 2000’s, the developments he was asked to draw were a balance of one and two bed properties, compared to today where the majority of the buildings he is designing are more towards two and sometimes three bedrooms. Now of course, this was all anecdotal but it made me think if similar things were happening in the Tamworth property market?

 
This is a really important point as I explained to this homeowner, as knowing when and where the demand of buyers is going to come from in the coming decade is just as important as knowing the supply side of the buy to let equation, in relation to the number of properties built in Tamworth, Tamworth property prices, Tamworth yields and Tamworth rents.
 
In 2001, there were 29,400 households with a population of 74,500 in the Tamworth Borough Council area. By 2011, that had grown to 31,600 households and a population of 76,800.
 
.. meaning, between 2001 and 2011, whilst the number of households in the Tamworth Borough Council area grew by 7.61%, the population grew by 3.06%
 
Nothing surprising there then. But, as my readers will know, there is always a but! My analysis of the 2011 Census results, using the most recent in-depth data on household formation (eg ‘one person households’, ‘couples/ family households’ or ‘couple + other adults households and multi -adult households’), has displayed a sudden and unexpected break with the trends of the whole of the 20th Century. There has been a seismic change in household formation in Tamworth between 2001 and 2011.

Between 2001 and 2011, the population of Tamworth grew, as did the number of Tamworth properties (because of new home building). However, the growth rate of new properties built in Tamworth was much lower than expected though, but still the population has grown by what was expected, meaning the average household size was larger than anticipated in Tamworth. In fact, average household size (ie the number of people in each property) in 2011 was almost exactly the same as in 2001, the first time for at least 100 years it had not fallen between censuses. (Since 1911, household size has decreased by around 20% every decade).


Looking at figures specifically for Tamworth itself,

·        One person households – 25.9%               

·         Couples/family households – 68.5%
·         Couple + other adults/multi-adult households – 5.6%

This decline was reflected in large scale shifts in the mix of household types. In particular, there were far more “couple + other adults households and multi -adult households” than expected (5.6% is quite a lot of households). It can be put down to two things; increased international migration and changes to household formation. A particularly important reason for the difference can probably be attributed to the evidence that migrants initially form fewer households (ie two couples share one property) than those who have lived in the UK all their lives. Also, changes to household formation patterns amongst the rest of the population, including adult children living longer with their parents and more young adults living in shared accommodation (as can be seen in the growth of HMO properties (Homes of Multiple Occupation).
 
So, what does all this mean for Tamworth Homeowners and Landlords? Quite a lot in fact. There has been a subtle shift to slightly larger households in the last decade, meaning smart landlords might be tempted to buy slightly larger properties to rent out – again good news for homeowners who will get top dollar for their home as they sell on. But now with Brexit, household formation might swing the other way in the next decade? Who knows? Watch this space!
 
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 01455 633 753 or 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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Fair Wear and Tear for a Tamworth Landlord

The highest number of disagreements between landlord and tenant is often related to wear & tear, so what is fair wear and tear and who is responsible for paying for the costs of repairs.
Applying the rules of betterment is the is the correct way to sort out these disagreements  and it’s a fair way of calculating who should pay and how much should be paid. 
To read the guidance notes  from ARLA click here……http://bit.ly/29H54oY

A landlord should not be at a financial or material advantage or disadvantage at the end of a tenancy, however fair wear and tear does depend on the type of tenancy. 
The little old lady living on her own is likely to suffer far less wear and tear than a home rented by a large family with young children or pets.
A small stain on a carpet or rug which would likely cost £20 to clean should be the responsibility of the tenant, however, if the landlord decides to replace the carpet or rug and deducts the whole cost from the deposit, well, this would be betterment and not a repair.
The landlord should split the cost with the tenant, a fair way would be to obtain a few quotes from reputable cleaning companies, to remove the stain and charge the lowest quotation by deducting this from the deposit. The landlord would then pay the balance on the replacement cost.
Before replacing the carpet or rug, copies of the quotes should be supplied to the tenant, thus keeping everyone in the know.
There are times when cleaning or a repair is not worthwhile for the landlord, but charging the tenant the full replacement cost is unfair.  Apportioning the cost to a carpet that is 8 years old  and nearing the end of its life with a small stain that needs cleaning is the fairest way to charge a tenant.
The method of calculation takes into account the value and lifespan of the carpet and splits the purchase cost over the lifespan. Below is an example showing how the figures are calculated.
The figure input as the expected life of the carpet should reflect the degree of wear and tear relating to the tenancy, this figure can be adjusted up or down depending upon low wear and tear or high traffic.
Betterment
A Replacement cost of carpet £750
B Age of carpet 5 years
C Expected life of asset 15 years
D Expected time before renewal of carpet (C – B) 10 years
E Annual depreciation (A / C) £50
F Apportioned cost to tenant (D x E) £500
What is the lifespan of the carpet? This will depend on the quality of the carpet and type of occupants in the property (the general ‘rule of thumb’ is that an item in a tenanted property will have an average lifespan of five years) 
It’s always good to back up the calculation with a copy of the original purchase invoice if possible with an explanation of how the expected life of the item was calculated.
 
Photographs or video inventories are a good way of recording the condition of the property at the start and end of the tenancy by providing a clear record of the property.  Any evidence should be clearly dated and signed by the tenant to verify any details i.e burn marks, carpet stains and damage to furniture. This will help with negotiating the return of the deposit at the end of the tenancy and always ensure the inventory is completed once the tenant has moved out with all their belongings.
 
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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698% – Rise in Tamworth Property Prices since 1981

Roll the clock back 35 years to 1981, and Mrs. T was in power, we had a Royal Wedding, Britain won the Ashes and Bucks Fizz won Euro Vision with ‘Making your Mind up’.   Haven’t things changed.  The number of homeowners and property investors who said they wish they had hindsight and bought up every house in Tamworth all those years ago, especially when you consider what has happened to Tamworth property values, as…

 
Tamworth Property Values since 1981 have risen by 698%.
 
Not bad when you consider inflation over the same time period has been 271.9%, meaning in real terms (i.e. after inflation), property values in Tamworth are 426.1% higher.It’s no wonder people can’t afford to buy property anymore and landlords are attracted by bricks and mortar. Yet the changes to the Tamworth Property market run much deeper than property value changes as no one could have predicted how the property market has changed in Tamworth over the last 30 years.
 
Looking at the Local Authority data for Tamworth Borough Council in 1981, 41.2% of Tamworth people lived in a Council House, whilst today its 19.3% … a massive drop which can mostly be attributed to Margaret Thatcher allowing Council tenants the right to buy their Council House.  The private rental sector since 1981 has, as one would have expected, also changed.  The proportion of properties privately rented in the Tamworth area (i.e. through a private landlord or a letting agency) has more than trebled, rising from 3.2% to 11% of property.
 
So, let us consider those people who own their own home, surely that has had a massive drop?  In 1981, the proportion of people who lived in the Tamworth Borough Council area who owned their own home was 55.5% … and today its … 68.2%. Not the seismic change most of you were expecting (including myself!).

Home ownership in the 1980’s and 1990’s in Tamworth did in fact rise, but as I have discussed in previous articles in the ‘Tamworth Property Market Blog’, that was because nearly every Council tenant was buying their council house. Now there are hardly any Council houses for the younger generation to move into (because of the right to buy scheme) so they have no choice but to privately rent.
 
.. and this is why the buy to let market in Tamworth is an investment sector that will continue to grow as councils aren’t building council houses in their thousands each year (like they were in the 1950’s/60’s and 70’s).  The Tamworth property market is constantly changing and buy to let for too long has been heavily dependent on house price growth, where yield has been almost forgotten.  I see the changes in tax and landlord and tenant law in a different perspective to the sooth-sayers and see it as bringing many opportunities where yield will become more important.  You might need to change your buy to let targets, your methodology to financing or even consider places other than Tamworth in which to invest your money, but this will shine a light on investing in properties with healthier yields and create more realistic long term buy to let opportunities, instead of short term growth bets and wagers.
 

 

Like Bucks Fizz said in their song, it’s time to make your mind up. The advice I give to my landlords, and also to you my blog reading friends is this; these changes will make some landlords panic, meaning competition for decent Tamworth buy to let bargains will reduce as fear of change kicks in and amateur investors flee the market.  These opportunities will provide a more stable platform for knowledgeable and wise Tamworth buy to let landlords to thrive in.  If you want to learn more about the Tamworth Property Market, feel free to give me a call for a chat, or failing that, visit the Tamworth Property Blog, where you will find many more articles like this solely on the one topic of the Property Market in Tamworth www.tamworthpropertyblog.co.uk

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 01455 633 753 or 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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House Prices in Tamworth rise by more than 13% in the last 18 months

Over the last month, the Tamworth property market has seen some interesting movement in house prices, as property values in the Tamworth Borough Council area rose by 0.7% in the last month, to leave annual price growth at 9.5%. These compare well to the national figures where property prices across the UK saw a monthly uplift of 0.42%, meaning the annual property values across the Country are 8.3% higher, this is all despite the constraining factors of Stamp Duty changes in the spring and more recently our friend Brexit.
Looking at the figures for the last 18 months makes even more fascinating reading, whereby house prices are 13.4% higher, again thought provoking when compared to the national average figure of 13.6% higher.
However, it gets more remarkable when we look at how the different sectors of the Tamworth market are performing. Over the last 18 months, in the Tamworth Borough Council area, the best performing type of property was the semi, which outperformed the area average by 0.62% whilst the worst performing type was the apartment, which under-performed the area average by 2.45%.
Now the difference doesn’t sound that much, but remember two things, this is only over eighteen months and the gap of 3.07% (the difference between the semi at +0.62% and apartments at -2.45%) converts into a few thousand pounds disparity, when you consider the average price paid for a semi-detached property in Tamworth itself over the last 12 months was £164,900 and the average price paid for a Tamworth apartment was £117,500 over the same time frame.
I know all the Tamworth landlords and homeowners will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area…
·         Overall Average          +13.4%
·         Detached                     +13.2%
·         Semi Detached            +14.1%
·         Terraced                      +13.6%
·         Apartments                 +10.6%

So what does all this mean to Tamworth homeowners and Tamworth landlords and what does the future hold?
When I looked at the month-by-month figures for the area, you can quite clearly see there is a slight tempering of the Tamworth property market over these last few months. I have mentioned in previous articles that the number of properties on the market in Tamworth has increased this summer, something that hasn’t happened since 2008. Greater choice for buyers means, using simple supply and demand economics, that top prices won’t be achieved on every Tamworth property. You see, some of that growth in Tamworth property values throughout early 2016 may have come about because of a surge in house purchase activity, an indirect result of the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.
However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.
…And Tamworth property values, assuming that everything goes well with Brexit, I believe in twelve months’ time we should see values in the order of 4% to 7% higher.

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 01455 633 753 or 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.
Website  –  http://www.hallandthompson.co.uk

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Full steam ahead for Tamworth new builds – Pennine Grange B77

To finish the week, a delightful new build on Pennine Way, Stonydelph, Tamworth. With four bed rooms, separate utility, two wet rooms and a generous bathroom this certainly ticks all the boxes for the growing modern family. 
 
This home can be yours for £379,995 with only 5% deposit down, interested in knowing more, then check out http://bit.ly/2e94dCq or pop down for a viewing with the builders, Redrow Homes.
 
                To read more click here………….http://bit.ly/2e94dCq
 

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 01455 633 753 or 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.
Website  –  http://www.hallandthompson.co.uk

The Property Market Blog… Tamworth Property Blog

 
 
 
 
 

Buy to let investment 2 bed house on School Street, B77

Hello to all my blog reading friends,

I’ve got a 2 bed house for you to look at, it’s on School Street, Glascote which is a popular spot for renters. The Town Centre and Network Rail are just 10 minutes away making it very handy for both commuters and shoppers.

From the details it appears well appointed and would be ready to rent straight away, so landlords, your pension pot would be earning straight away.


Now for the numbers; asking price £135,000 and the rent will be £7500 a year (£625pcm) producing a gross yield of 5.55%.

ON THE MARKET …..http://bit.ly/2dAiFjj
 
If you are interested in this property then why not give the agents, Taylor Cole a call and book a viewing. I don’t envisage this house being on the market too long.
 
If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Tamworth Property Market, together with regular postings on what I consider the best buy to let deals in Tamworth (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!

Email me on Lorraine@hallandthompson.co.uk or call on 07531484956. 

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

Tamworth property Market in 2017 and Beyond

As the trees turn from green to hues of red and brown, the Tamworth property market has a confident feel to it. With the underlying fundamentals of a continued lack of properties being built, a shortage of properties (both in terms of quantity and quality) coming to the market and the continued low mortgage rate environment, buyer enquiries from first time buyers and buy to landlords is strong and motivation is even stronger, given those inexpensive lending rates and general demand caused by under supply.

 
Now of course, there are a few potential hurdles coming towards us in the coming months that could affect the Tamworth (and UK) property market. Mrs. May has yet to get her teeth into Brexit negotiations and we don’t know what the US Presidential elections might do to the money markets around the world, meaning that on the run up to Christmas, some savvy buyers may take advantage of the lack of certainty by making cheeky offers, but I don’t believe these will have a huge impact on property values (like the 2008 Credit Crunch).
 
You see, property ownership, whether it’s for yourself as a homeowner or buy to let landlord, is a long term investment. In fact, focusing on buy to let, a number of landlords who own property in Tamworth have made contact with me recently asking for my thoughts on the future of the buy to let market in Tamworth.  Well, as the Politician Edmund Burke said in the 18th century, “Those who don’t know history are destined to repeat it.” .. in other words, to see the future you must look into the past.
 
Since the Millennium, the housing market has had everything thrown at it. The recent Brexit, last year’s General Election, the near melt down of the World Economy with the Credit Crunch, The Dot Com boom and bust, the housing market crisis in 2008, the housing boom of 2001 to 2004 .. the list goes on. In fact here is a graph (courtesy of the Land Registry) of average Property values since the Millennium in the Tamworth Borough Council area.
 
 
Even though we had the Dot Com bubble burst in 2000, two years later in January 2002, property values in the Tamworth Borough Council area have risen from £60,600 (in Jan 2000) to £77,500 .. and kept rising to July 2007, when they peaked at £149,300. Then we had the Credit Crunch and property prices continued to fall until May 2009, where they averaged £124,100 .. but look where they are now…  £163,400.
 
The point I am trying to get across is long term future property values are more helpful to landlord investors than the month by month headline grabbing micro movements in the property market.  Look at the graph and you will see the growth in property values is an upward trend BUT, the average darts about as each month goes by.  So don’t watch the property indexes and panic if values drop next month or the month afterwards, because even in the glory days of 2001 to 2004 and 2012 to 2014, without fail, values always dropped slightly around Christmas, but people will always need a roof over their heads, and if they can’t buy and the council aren’t building anymore  .. only buy to let landlords can meet that demand.
 
Tamworth landlords are being hit in the pocket with the new up and coming taxation rules and yes we might have a bumpy ride on the run up to Christmas (because of the points raised earlier), Brexit or no Brexit, but the trend will be a slow and steady upward momentum of property values, demand for rental properties and yields in the Tamworth property market into 2017 and beyond.
 
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 or 07531484956, you can always email me on Lorraine@hallandthompson.co.uk
 
Dont forget to visit the links below to view back dated deals and Tamworth Property News. 

 

 

Do Landlords In Tamworth Face A Bleak Future?

Tamworth landlords may have to change their buy to let strategy from Autumn 2016. The Government are  to bring in more welfare cuts and this may have a knock on effect with landlords renting to families on housing benefits. 

The Government are giving a benefit cap of maximum £384pw so Housing Benefit tenants with 3 or more children will find themselves having to pay any shortfall in rent themselves. Two years ago the Government brought in a cap of £500 to families with 4 or more children and a number of larger families found themselves evicted by private landlords as the families either couldn’t understand that they would be responsible for this shortfall in rent or they refused to pay the shortfall.
The big shock now is, the lower £384 cap, which will affect families with 3 or more children.
Put simply, if your tenants have 3 children, their maximum housing benefit paid by the council will be about £92pw, leaving your tenant  to pay roughly £35pw out of their own pocket.
Tamworth landlords need to ensure that they have made all relevant tenants aware of their responsibilities with regards to paying any shortfall direct to them.
Landlords are increasingly choosing not to take on housing benefit tenants due to the hassle of dealing with local councils and the dogma it entails.
Click here to read in full……………………https://www.gov.uk/benefit-cap/overview 
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 01455 633 753 or 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk

Property Of The Week – Bonehill, Tamworth B78

This weeks property of the week finds me at Park Lane, Bonehill looking at this deceptively spacious 4 bed cottage. Complete with annex which would be ideal for an elderly relative or to give a teenager their first steps in independence Peel Cottage has everything for the discerning home owner.

If you have £425,000 to spend and you fancy living in Bonehill, then why not give  our friends Howkins & Harrison of Atherstone a call and book a viewing.

Click to view more details on Zoopla……http://bit.ly/2dtVCH7

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 01455 633 753 or 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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Now Is The Time To Get That Garden Ready To Be A Winter Wonderland

It is almost Autumn which means that any gardens will need to be protected from that cold winter chill so whilst you are preparing to get those jumpers and coats out the back of the wardrobe, here are a few of my top gardening tips to keep your garden gleaming!

Image result for winter garden uk
Picture via the BBC

Whether you live in the suburbs or the countryside it is essential to protect your trees – You may have seen around that younger trees are coated at the base by a wire mesh – essential to keep rats and mice from chewing them up and killing them over winter! I doubt we’ll get any snow again this year but this mesh also provides a good layer to keep the sap canals in the tree from freezing! If you have evergreens continue watering them as well as any shrubberies you have that keep their leaves over winter.

Talking about leaves an ideal solution in Tamworth is to chop them up with a lawnmower and put them in your flowerbeds or compost bin but whatever you do – take them off the lawn unless you want patchy grass come spring and summer! Although leaves are a good source of nutrients when they decay you lawn will still need light! Do your edging in summer to avoid damaging the roots in winter and if you plan on weeding flowerbeds put the waste in the green bin to avoid contaminating your compost bin with the weed seeds to avoid chaos next summer!

If you spray your lawns with a weedkiller make sure you do it at the start of October to stop horrible winter weeds destroying your grass and spray with lawn fertiliser a few weeks before spring starts for a vibrant colourful summer grass.

You may choose to plant bulbs for spring in Autumn before the ground freezes over winter so your garden will come in to bloom early as for cutting down the perennials many people will choose to leave them to provide seeds for the non migratory birds over winter but if you do it today you’ll save yourself a job for tomorrow (personally I would feed the birds!) and remember if you are cutting them down for next year to leave a good few inches off the ground to avoid them getting diseased over winter. You will not have to worry about your roses until spring so unlike many people who have them, I would opt not to cut them back until then unless absolutely necessary!


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