Tamworth property Market – Q4 Update

Well, hasn’t 2016 been eventful. The ups and downs of Brexit, the Queen’s 90th, Andy Murray winning Wimbledon, Trump, Bake Off to Channel 4 and something close to the hearts of every buy to let landlord and homeowner in Tamworth … the Tamworth property market.

So, let’s look at the headlines for the Tamworth property market…

In the last month, Tamworth property values rose by 1.85%, leaving them, year on year 11.3% higher, whilst interestingly, Tamworth asking prices are down 1.1% month on month. All three statistics go to show the Tamworth property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June. Irrespective of all the issues, the average value of a Tamworth home now stands at £205,900.

Generally, Tamworth asking prices continue to hold up well, as asking prices are 4.9% higher year on year. At this time of year, asking prices tend to drop on the run up to Christmas and locally, they have dropped by 1.1% this month (November 2016), although this compares well with last year’s drop in Tamworth asking prices, as we also saw asking prices drop by 1.1% in November 2015.

 

 
Now it’s true to say, after chatting with fellow property professionals in Tamworth, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.

 

 Looking at the figures for the UK (as we can’t just look at Tamworth in isolation), property values are generally rising slower than a few years ago, but on a positive note, there’s still growth across the UK. You see, slowing property value growth isn’t solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.

 

On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.

 So, what will happen in 2017 in the Tamworth property market?

Some say until we know what type of exit the UK will make from the EU it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Tamworth) housing market as a whole. As I have mentioned time and time again over the last few months, the biggest issue is demand outstripping supply when it comes to the number of households required to house us all. Tamworth has an ever-growing population: with immigration (we still have at least two years of free movement from EU members into the UK), people living longer and the fact we need thousands of additional households as the country has nearly 115,000 divorces a year (where one household becomes two households).  These are interesting times ahead! 

 

Don’t forget to visit the links below to view back dated deals and Tamworth Property 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 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk
 




 

 

 

 

 

 

 

Tips for Tamworth Landlords – Buy to let Investments

As savings interest rates are currently at almost zero levels. Lloyds, for instance, is now offering a measly 0.05% on savings accounts, leading many to save their hard earned money under their mattress’s. People are looking at alternative ways to either boost their income or to save for their pension pot.
Buy to let even with the recent tax changes is still serious business and there is still plenty of profit to be made in the residential property market. There are however many pitfalls that the newbie investor should consider before putting their money into property, with this in mind we have complied a few tips to help you start your journey.
Buy to let investments can be profitable, they won’t normally transform you into a super rich property expert and it’s usually a long game plan. There are books doing the rounds of  individuals  who have made their fortune through their buy to let portfolio and there are numerous property courses being run on a weekly basis to which a novice can spend thousands of pounds with little or no return.
The average newbie landlord, however, will usually make modest profits. There are various factors that can deplete your income i.e. voids on properties, tenants not paying the rent and now many government measures in place that are attempting to get rid of private landlords therefore leaving more homes available for first time buyers.
The time and effort involved in being a landlord can be immense. Will you be attending property auctions to purchase  your properties, spending your time surfing the web on the local property listings or using a lot of shoe leather to make yourself know to the local agents. If you are working in full time employment while starting out on your property journey you will need lots of stamina as this can take so much time and effort. I find Christmas is a good time to look at property and perhaps put offers in, the majority of the general public have nothing on their minds except turkey and tinsel during the month of December.

Once you’ve purchased your buy to let, you must decide if you have the time and inclination to manage the property yourself or whether you leave in to the professionals! If managing the property yourself you will need to ensure the property meets current legislation before renting it out. Then once the tenants are in situ, you will need to carry out ongoing maintenance work along with yearly legislation certification.

Big decisions – what type of renter are you looking for, are pets allowed, are you looking for long term capital growth or a certain annual yield.


If you cannot take lots of criticism from tenants and the media then you may be better off letting a managing agent act on your behalf, at least then there will be no 2am phone calls from tenants “I’ve locked myself out” or “the heating has gone off”.

If you are serious about getting into the buy to let business, I would suggest you join the likes of The National Landlords Association or Guild of Residential Landlords, they offer shed  loads of free information and documentation. There is also online training with The NLA which is superb.


Speaking to an accountant who understands property tax

Laws for landlords have changed, so it is advisable that you talk to an accountant about your financial liabilities.

Many amateur landlords do not realise that they must have a buy to let mortgage if they need finance, a standard residential mortgage will not suffice. Lenders must  be advised that you will be renting our your property and they will need to give written permission, falling foul of lenders is not advisable as they may well call in the loan.

If you do plan on having a mortgage, you need to ensure that the house you have in your sights is accepted as security for the loan. For example, many lenders won’t offer mortgages secured on flats over restaurants.

Amateur landlords will hear due diligence being mentioned over and over again by experienced landlords, this should not be taken lightly.

 
Happy Property Journey!

Tamworth First Time Buyers Are Paying 12.2% More Than 12 Months Ago

Figures just released by the Bank of England, show that for the first half of 2016, £128.73bn was lent by UK banks to buy UK property – impressive when you consider only £106.7bn was lent in the first half of 2015. Even more interesting, was that most of the difference was in Q2, as £68.12bn was lent by UK banks in new mortgages for house purchase, which is the highest it has been for two years. Looking locally, in Tamworth last quarter, £649.4m was loaned on B77 properties alone!

 
Even though the Bank won’t be releasing the Q3 figures until December 2016, as I discussed a few weeks ago, HMRC have published their own preliminary data to suggest Q3 will be even better, with a massive growth of buy-to-let landlords to the housing market in that time frame. Fascinating, as it seems to fly in the face of the popular narrative – that the uncertainty surrounding Brexit would negatively impact buyer sentiment.
 
And it’s not just buy-to-let landlords that seem to be flourishing. I am finding that first-time buyers are also a lot more confident too. Low, and now negative, inflation has had a tangible impact on household finances and first-time buyers feel more secure in their jobs. Couple with a low interest rate environment and you have all the ingredients for a strengthening property market. To back that up with numbers, of the £68.12bn of mortgages lent in the Quarter (Q2), £14.9bn was lent to first-time buyers (the highest proportion of that overall lending for over two years at 21.99%).
 
When I looked at the data for Tamworth Borough Council area, the average price paid by first-time buyers (FTB’S) was £141,989, which is a drop of 1.3% from last month but a rise of 12.2% to twelve months ago. The Land Registry then categorise the remaining buyers into cash buyers or those buying with a mortgage. The average price paid by cash buyers was £153,398, a drop of 1.46% from last month but a rise of 11.94% to twelve months ago, whilst buyers with mortgages (but not FTB’s), the average price paid by them was £166,847, again a drop of 1.4% from last month with a rise of 12.0% to twelve months ago.


 
What surprised me with these figures was how close the property prices, values and percentages were to each other. It just goes to show the combination of low mortgage rates and a stable job market will continue to have a positive effect on the Tamworth and UK market.  And that is why, while there is undoubtedly more cautiousness in the market at present than a year or so ago (among borrowers and mortgage companies alike) – mortgage rates are so competitive that they are inducing people to commit to a home purchase.
 
It seems the great Brexit uncertainty was over hyped, and house price growth as well as mortgage approvals, could pick up pace into 2017.
 
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 www.tamworthpropertyblog.co.uk
 
 
 

“Property of the Week” – Bonehill Tamworth – A cool 795K

On The Market have this advertised on behalf of Aston Knowles of Sutton Coldfield, maybe Tamworth agents aren’t equipped to handle a property of this standing!

Anyway, this truly delightful four bedroom cottage located in rural Bonehill is overlooking farmland and the beautiful countryside of Tamworth, it’s is a real hidden treasure having been refurbished to an exceptional standard and having many period features and beams along with an oak staircase. Agents state that parts of the property date back 300 years.

The location of this cottage is superbly rural but is within easy access to Ventura Park Shopping Centre, Lichfield, Sutton Coldfield, the Belfry and Kingsbury Water Park and all motorway links. 
There is so much to this property that it’s definatley worth a viewing if  you have £795,000 to part with, hey it even comes with a garden room and a fabulous hot tub. So if you are in the market for a new home, check this cottage out!

https://www.onthemarket.com/details/3359916/?utm_source=mitula&utm_medium=cpc&utm_campaign=mitula_feed

Looking to sell or are you a private landlord, speak to us for impartial advice and guidance to get the best return on your investment.


For more information about our services that we could introduce you to, or to ask about our thoughts, 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 www.tamworthpropertyblog.co.uk
 


 

Tamworth Vendors ………..Should You De-Clutter?

We would all like the best price for selling our homes and in the current market, it is more important than ever to ensure that our properties are a highly saleable proposition. 

There are  several things that we can do to ensure that our property will sell rather than the property down the street, you only have 7 seconds to make a strong first impression whether it be to sell your property or to sell yourself.

The price needs to realistic and you should try to be flexible on viewing times and completion dates. You also need to be with a pro-active estate agency not just one who simply lists your house and then waits for the market to deliver a buyer to your door.
But there are other things that you can do, which can have a significant bearing on whether a buyer will purchase your property instead of the one down the road.
                   
A recent survey supports our own view that clutter in an otherwise charming property can stop an early sale. Over 76% of estate agents questioned said that de-cluttering your home is among the top three most important things a seller can do. 68% of agents said that a spik and span interior was important, followed by 48% who said that the garden should be spruced up.

It’s easy if you have lived in your property for a while to become oblivious to what is clutter, so it’s a good idea to ask a straight talking friend for advice and to help de-clutter, you could even hold a de-clutter party! The simple task of clearing clutter can transform your life and can make you feel liberated.
 

Your local charity shops will be only too pleased to take your unwanted possessions, some will even collect.The social benefit to the community will leave you with a good feeling plus you have given your house a de-clutter.

 
If you are thinking of selling your house and would like a free valuation or are thinking of getting into the property rental market, speak to us for impartial advice.




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 www.tamworthpropertyblog.co.uk



 



BTL deal with 6 % yield-Coppice Drive Tamworth B78

Today, a great little deal on the table in you are in the buy to let market – 3 bedroom end terrace being advertised by Purplebricks for £130,000, last one sold on Coppice Drive in 2012 for £115,000.

Spacious family home with good size bedrooms and two reception rooms, yes its outdated and tired but just think of the huge scope for improvement. This property is close to Birch Coppice and will rent all day long, what more could you want than a five minute walk to work?  This should rent for £675pcm which will give a rental yield of 6.2%, not bad.
http://www.rightmove.co.uk/property-for-sale/property-45844866
I can’t see this property staying around for too long, some savy landlord will snap this up.
Interested in this property, check it on with Purplebricks, today!

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 www.tamworthpropertyblog.co.uk

 

£4m paid in Stamp Duty by Tamworth Residents

“A pound saved is worth two pounds earned . . . after taxes” is what my Grandfather used to say. He loved his irony, yet was always a wise man, and it is tax I want to talk about today, in particular, property taxation .. Stamp Duty in fact.

 
Apart from some minor exemptions, Stamp Duty is paid by anyone buying a property over £125,000 in the UK. It presently raises £10.68bn a year for the HM Treasury (interesting when compared with £27.6bn in fuel duty, £10.69bn in alcohol duty and £9.48bn in tobacco duty).
 
In the latest set of data from HMRC, in the MP constituency that covers Tamworth, property buyers paid £4m stamp duty in one year alone – a lot of money in anyone’s eyes (although not as much as the £238m in income tax that all of us in the same area paid last year).


However, as you may know, George Osborne introduced an additional tax for landlords and from 1st April 2016 they had to pay an additional 3% stamp duty surcharge on top of the normal stamp duty rate when purchasing a buy to let property. There were tales of woe and Armageddon with a report by Deutsche Bank suggesting that the new surcharge could see house prices fall by as much as 20%.
 
HMRC data released in the Summer for Quarter 2 (Q2) of 2016 did seem to back up those fears as they published some worrying figures; only one in seven properties purchased was a second home or buy-to-let (in real numbers, only 30,300 of the 207,900 properties in Q2 were bought by landlords).
 
In previous articles, I spoke about the slump of property transactions after the 1st of April (as landlords rushed through their property purchases in March to beat the April deadline). In Q2 of 2016, £1.976bn was raised in Stamp Duty from Residential Property. Of that £1.976bn, £652m was paid by buy to let landlords (£424m in normal stamp duty and £228m in the additional 3% surcharge).
 
However, looking at Q3, the numbers have improved significantly. Of the 235,000 property sales, nearly one in four of them (56,100 to be precise) were bought by buy to let landlords and of the £2.208bn in stamp duty, £864m was paid in ‘normal’ stamp duty by BTL landlords and an impressive £442m paid by those same landlords in the additional stamp duty surcharge.
 
The statistics suggest buy to let investors have thankfully not been deterred by the stamp duty surcharge introduced in April this year. The figures also show that 65.4% of “buy to let” purchases cost less than £250,000, 23.7% of properties were in the £250k to £500k range and 10.9% (or 6,100 additional properties) of buy to let properties bought cost over £500k – interestingly nearly one in four (22.2%) of £500k properties purchased in Q3 were buy to let properties.
 
  
It just goes to back up what I stated a few weeks ago when I suggested that many investors had rushed to make purchases before 31stMarch, making figures in the following months (Q2) artificially low when the 3% supplement was introduced, but in Q3 the number of buy to let properties purchased increased by 85%.
 
It just goes to show you shouldn’t believe everything you read in the newspapers! I can assure you the Tamworth property market is doing just fine. 

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 www.tamworthpropertyblog.co.uk
 
 



Property of the week – Middleton, Tamworth B78

It may be cold outside but the property of the week is sure to warm your cockles. With a real cottage style feel, this 3 bedroom semi has open aspects to the front, rear and side of the property and has the most stunning views.  Situated in the superb location of Middleton, the cottage is spacious and welcoming.

This is being advertised by our good friends at Green & Co Four Oaks with an asking price of £400,000. Interested??? then why not give the agents a call.

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


Are Tamworth Rats The Biggest In The Area?

I had a friend contact me over the weekend with  “help my tenant has got rats, what do I do”?

Well, it isn’t always the case that the landlord is responsible for eradicating these pesky little blighters. Neither is it necessarily the case that only dirty homes encourage mice or rats to cause infestation to a home. It’s a know fact that any area of a property or garden will encourage mice or rats if the environment provides food, shelter and warmth.

First of all working out who’s responsible for dealing with an infestation depends on several things:-

1/ Does your tenancy agreement state who will be responsible for dealing with the vermin.
2/Was your home infested before you moved in.
3/Is the problem being caused or made worse by disrepair or the property, garden or surrounding area.
4/Is it something that you’ve done or haven’t done that has led to the problem.

Was there a problem when you moved in?

If you live in furnished rented accommodation and the problem with rats was there when you moved in, it’s likely that your landlord is responsible for dealing with the problem.
This is because your landlord has a duty to ensure that your home is fit to be lived in on the day they let it to you. An infestation could mean that your landlord has not met this duty, this only applies at the start of a tenancy and wouldn’t apply if a problem developed later on.
This duty doesn’t apply if your home was let to you unfurnished.

Dealing with Rats:

Rats need to be eradicated as they can transmit disease to humans including Weil’s disease and Salmonella poisoning. In a house, they will gladly take up residence under floorboards, in lofts and
in wall cavities. We usually associate them with living in sewers, however they can also survive in your garden, living in and beneath sheds. If you regularly put food out to attract birds or hedgehogs, pound to a penny you have had a visit from a rat in the past. I’m not trying to discourage you from putting food out for other wildlife, we put food and water out every day to attract the birds, what I’m saying is make sure you don’t put food out to excess.

Preventative Measures:


Your best defence to stop rat infestation would be basic housekeeping and cleanliness. Keeping your garden and backyard maintained with any overgrown areas cut back to impede rats from making nesting sites. Your household rubbish should be disposed of correctly and securely, leaving food bags lying around outside for any length of time will only encourage rats.

For example, if there are holes in the walls and floors which are allowing rodents to get in, then your landlord would be responsible. This is because there’s a term implied into tenancy agreements which says that a landlord is responsible for keeping certain things in repair, including the structure and exterior of your home.

It’s important that your house is kept in good repair to reduce the opportunity for rats to get inside from an external vantage point.  Check for broken pipework, holes in walls and floors, rats love cavity walls as they are free to roam all over a house so ensuring the outside of the property is in good repair will help to restrict areas where rodents can find shelter.

Your local council can put you in touch with an Environmental  Health Officer as it’s not always straightforward working out who’s responsible, he/she may also be able to identify the cause of an infestation, which in turn might help work out who’s responsible.

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 www.tamworthpropertyblog.co.uk

 



Average Rent Paid by Tenants in Tamworth rise to £715 per month

Back in the Spring, there was a surge in Tamworth landlords buying buy to let property in Tamworth as they tried to beat George Osborne’s new stamp duty changes which kicked in on the 1st April 2016. To give you an idea of the sort of numbers we are talking about, below are the property statistics for sales either side of the deadline in B77.


Jan 2016 – 55 properties sold
Feb 2016 – 55 properties sold
March 2016 – 106 properties sold
April 2016 – 44 properties sold
May 2016 – 39 properties sold
 
Normally, the number of sales in the Spring months is very similar, irrespective of the month. However, as one can see, this year was a completely different picture as landlords moved their purchases forward to beat the stamp duty increase. You would think that even with a basic knowledge of supply and demand economics, rents would be affected in a downwards direction?
 
However, there appears to be no apparent effect on the levels of rent being asked in Tamworth – and more importantly achieved and this direction of rents is not likely to inverse any time soon, particularly as legislation planned for 2017 might reduce rental stock and push property values ever upward. The decline of buy to let mortgage interest tax relief will make some properties loss making, forcing landlords to pass on costs to tenants in the form of higher rents just to stay afloat. Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.
 
.. but it’s not all bad news for tenants. Whilst average rents in Tamworth since 2005 have increased by 14.8%, inflation has been 38.5% over the same time frame, meaning Tamworth tenants are 23.7% better off in real terms when it comes to their rent (which is a sizeable chunk of most people’s monthly household budgets)
 
Year
Average Rent in Tamworth per month
2005
598
2006
612
2007
633
2008
653
2009
658
2010
654
2011
664
2012
676
2013
685
2014
693
2015
703
2016
715
 
 
I found it particularly interesting looking at the rent rises over the last five years in Tamworth, as it was five years ago we started to see the very early green shoots of growth of the Tamworth economy.  As a whole, following the Credit crunch (2011), rents in Tamworth have risen by an average of 1.4% a year – fascinating don’t you think?


 
The view I am trying to portray is that while renting is often portrayed as the unfavourable alternative to home ownership, many young Tamworth professionals like renting as it gives them adaptability with their life. Rents will continue to rise which is good news for landlords as buy to let is an investment but, as can be seen from the statistics, tenants have also had a good deal with below inflation increases in rents in the past. It’s a win-win situation for everyone although on a very personal note, it’s imperative in the future that tenants are not thwarted from saving for a deposit by excessive rental hikes – there has to be a balance.
 
For more thoughts and opinions on the Tamworth Property Market, if you are a Tamworth Homeowner or Tamworth landlord, please visit the Tamworth Property Blog 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 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk