323 Properties For Sale in Tamworth … is this an issue?

2017 has started with some positive interest in the Tamworth property market.  Taking a snap shot of the Tamworth property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Number of properties on the market 12 months ago
Number of properties on the market 12 months ago

 

 

 

 

 

 

 

Let us first consider the number of properties for sale, compared to 12 months ago:

property for sale today vs 12 months ago

Property for sale today vs 12 months ago

 

So when we add in building plots and other types of properties that don’t fit into the four main categories, that means there are 323 properties for sale today compared with 286 a year ago, a rise of 13%.

Next, Tamworth asking prices, compared

to the same as a year ago, are 4% higher.

property in Tamworth

What is property actually selling for in Tamworth

 

With that in mind, I wanted to look at what property was actually selling for in Tamworth. Taking my information from the Land Registry, the last available six months property transactions for B77 show an interesting picture (note the Land Registry data is always a few months behind due to the nature of the house buying process and so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.

So what does all this mean for the property owning folk of Tamworth?

Well, with more property on the market than a year ago and asking prices 4% higher, those trying to sell their property need to be mindful that buyers, be they first timers, buy to let landlords or people moving up the Tamworth property ladder, have much more price information about the Tamworth property market at their fingertips than ever before.

Those Tamworth people who are looking to sell their property in 2017, need to be aware of the risks of over pricing their property when initially placing it on the market. Over the last 12 months, I have noticed the approach of a few Tamworth estate agents is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books. The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and wont waste their time asking for a brochure. They won’t even view the property, let alone make an offer. So when the price is reduced a few months later, the property has become market stale and continues to be ignored.

Whilst the Tamworth property-market has an unassailable demand for property – there is one saying that always rings true – as long as the property is being marketed at the right price it will sell.

 If you want to know if your Tamworth property is being marketed at the right price, send me a web link and I will give you my honest opinion. lorraine@hallandthompson.co.uk

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Ask Lorraine – Do I need an EPC for my Tamworth property before I can issue a section 21 ?

🙋  Landlord’s Question: 

I want to issue a section 21 to my tenants as I’ve asked them to leave and they won’t. I’ve been told that I need an EPC before I  can issue this notice, is this correct?

Do I need an EPC??

Do I need an EPC??

Lorraine’s Answer:

I’m presuming that you manage the property yourself as any agent would have informed you that an EPC has been a legal requirement since 2007. For a tenancy or renewal granted on or after 1 October 2015, no section 21 can be served unless an EPC has been given beforehand.

I would recommend getting the EPC completed as soon as possible and checking that you have everything else in place before even considering issuing a Section 21 notice as it will only be thrown out of court.

You should consider getting professional advice before you do issue the Section 21 notice or perhaps joining one of the many Landlord groups, their advice and expertise is worth every penny.

Until next week.

 

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!  lorraine@hallandthompson.co.uk  or 07531484956

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Tamworth’s housing affordability hits a ratio of 6.75 to 1

A Tamworth homeowner emailed me last week, following my article posted in the Tamworth Property Blog about the change in attitude to renting by the youngsters of Tamworth and how they thought it was too expensive for first time buyers to buy in Tamworth.  There can be no doubt that buy to let landlords have played their part in driving up property values in Tamworth (and the UK) and from that made housing a lot less affordable for the 20 and 30 somethings of Tamworth.

In the email, they said they thought the plight of the first-time buyers in Tamworth was like a novice tennis player, playing tennis with Andy Murray. If you played him once you will unquestionably lose and if you were to play him 100 times you would lose 100 times. That is what they thought it was like for all the 20 something’s first time buyers of Tamworth going against all the buy to let landlords.

They went on and asked if the Bank of England (BoE) should be tasked to control house price inflation in the same way as the BoE controls inflation.The BoE has a target for the annual inflation rate of the Consumer Prices Index of 2%, whilst it is also required to support the Government’s economic policy, including its objectives for growth and employment.  So, should BoE be charged with containing buy to let housing market, by possibly changing the rules on the loan-to-value (LTV) ratio’s?

So, let’s look at how affordable Tamworth is?  The best measure of the affordability of housing is the ratio of Tamworth Property Prices to Tamworth Average Wages, (the higher the ratio, the less affordable properties are).   (i.e. looking at the table below, for example in 2014, the average value of a Tamworth property was 6.27 times higher than the average annual wage in Tamworth).

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 (EST)
3.19 3.62 4.62 5.87 6.71 6.21 6.21 6.02 6.27 6.75
Ratio of Tamworth property prices to Tamworth average wages
Ratio of Tamworth property prices to Tamworth average wages

 

 

 

 

 

 

This deterioration in affordability of property in Tamworth over the last couple of years has been one of the reasons why the younger generation is deciding more and more to rent instead of buy their own house.

… but it’s not the only reason.

A quick look on Money Supermarket today found 169 lenders prepared to offer 75% LTV Buy to let Mortgages and none at 85% LTV.  Lenders have self-imposed a high level of entry for buy to let landlords (i.e. putting down at least 25% of the purchase price in cash).  The BoE don’t need to meddle there!  Also, the Tories have certainly done lots to level the playing field in favour of first time buyers.  For nearly a year now, Landlords have had to pay an additional 3% in stamp duty on any buy to let purchase and over the coming four years, tax rules on landlord’s claiming mortgage interest relief will affect their pocket.  Neither, it doesn’t help that the local Authority sold off council houses in the Thatcher years and so for many on low incomes or with little capital, owning a home has simply never been an option (today or in the past).

It’s easy to look at the headlines and blame landlords.  First time buyers have been able to access 95% LTV mortgages since 2010, meaning even today, a first-time buyer could purchase a 2 bed terraced in Tamworth for around £130,000 and only need to find £6,500 deposit.  Yes, a lot of money, but first time buyers need to decide what is important to them.  Either save up for a couple of years to save the deposit and go without two annual foreign holidays, the full Satellite or Cable TV package with Sports and Movies costing three figures a month, the latest mobile phone and out socialising … or not as the case maybe?

I think we as a Country have changed … renting is returning to be the norm.  So my opinion is, landlords have it tough.  Let’s not blame them for the ‘perceived’ woes of the nation … because to be frank … we haven’t always been a country of homeowners.  Roll the clock back to 1964, and nationally, 30% of people rented their home from a private landlord – today – its only 15.3% nationally.

History of tenure in UK - 1918 to today.
History of tenure in UK – 1918 to today.

 

 

 

 

 

 

 

 

If you are an existing landlord or someone thinking of become a first-time landlord looking for advice and opinion and what (or what not to buy in Tamworth), one source of information is the Tamworth Property Blog  www.tamworthpropertyblog.co.uk

Why not join me at the Moathouse, Tamworth for a cuppa and a cosy chat, on the Tamworth property market?

lorraine@hallandthompson.co.uk   or 077531484956

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Snap General Election 8th June – Will This Affect The Tamworth Property Market?

I have already been asked what, if any, impact will Theresa May’s decision to have a snap general election on the 8thJune….

Well based upon the massive uncertainty Brexit brought I think we can safely say, that in the short term, there will be no negative impact on the Tamworth property market. If Brexit didn’t slow down the market there is no way a general election will!

The main reasons that I feel the current, Tamworth, market will continue to flourish are quite simple. Interest rates are still at record lows, lenders are offering fantastic deals meaning affordability is at an all time low.. There are still too few properties coming to market and with the current levels of decent job security, it means that prices will remain constant and even continue to rise, based upon the basic law of supply and demand.

If you are thinking of selling now is a great time to market your property, as I have said there aren’t enough around so you are likely to get a very good price. This could change if there is a surge of new properties coming to market before summer.

If you are thinking of buying, again, now is a great time. Lenders are asking for lower deposits and rates are as low as they have ever been, so your dream property is probably as cheap now as its ever going to be for you.

If you are thinking of selling or buying please , get in touch we would love to hear from you.

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Ask Lorraine – I’ve become an accidental landlord and the Tamworth property I’ve inherited has a woodburner

🙋  Landlord’s Question: 

”Dear Lorraine,

I’ve become an accidental landlord and the Tamworth property I’ve inherited has a wood burner . Should I get rid of this before I consider renting out this property. In a nutshell what  are responsibilities if I leave the wood burner?

Wood Burner advice
Wood Burner advice

 

Lorraine’s Answer

You must install a  carbon monoxide alarm in the room where the wood burner is situated. Apart from that, currently there is no legislation requiring any specific periodic inspection.
A check should be made at the start of each new tenancy by a competent person, that the appliance is safe to use and has not been tampered with or the flue is not blocked. It’s surprising how many people try to burn plastic bags and other combustible materials.  I’ve been reliably informed  that  burning ‘wet’ wood produces acidic moisture that will condense and corrode the flue.
So the wood used should be from a reputable source rather than collecting cheap old doors and windows that may have been treated with varnish or other sealants.
It also worth noting that the backplate, seals and ropes will need to be checked  on a regular basis, so if you think having a wood burner in a tenanted property is not going to work, then I would recommend having a contractor uninstall the appliance.

Until next week.

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! lorraine@hallandthompson.co.uk or 07531484956

https://www.tamworthpropertyblog.co.uk

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Coton Green, Tamworth BTL – Yield 5.27%

I’ve just noticed this,  three bedroom semi terraced house on the very popular Coton Green area of Tamworth. The property is a very nice spec and good to go, that’s right, drive it straight off the forecourt.  Two good size bedrooms and a smaller room ideal as a study/cot room.  A modern kitchen, guest cloakroom, extended garage and generous rear garden.

Interested? then call our good friends Taylor Cole and book yourself a viewing  01827 796861

 

 

 

http://www.rightmove.co.uk/property-for-sale/property-59013526.html

So the burning question, what yield can I expect? well if you pay the asking price of 165K and rent for £725pcm you can achieve a yield of 5.27%

https://www.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

*** 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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Pants Yield – But Plenty Of Capital Growth Potential – Two Gates, Tamworth

How’s this for a ship shape and ready to go deal? You don’t get more ready to go than a newbuild, do you? This 3 bedroom detached house in Tamworth  is part of a newbuild development in the Two Gates  area, which has always been a highly sought after area and continues to grow in popularity. The property is being marketed by Morris Homes  01827 796843  at £244,750.

The yield may be pants but if you are a landlord and it in for the long haul, then the capital growth may temp you? Interested then why not call Morris Homes for a viewing.

Newbuild

 

 

 

 

 

 

‘Flipping’ Heck – Tamworth Property Values Rise by £24.77 a day


Investing in Tamworth buy to let property is different from investing in the stock market or depositing your hard-earned cash in the Building Society. When you invest your money in the Building Society, this is considered by many as the safe option but the returns you can achieve are awfully low (the best 2-year bond rate from Nationwide is a whopping 0.75% a year!). Another investment is the Stock Market, which can give good returns, but unless you are on the phone every day to your Stockbroker, most people invest in stock market funds, making the investment quite hands off and one always has the feeling of not being in control.

However, with buy to let, things can be more hands on. One of the things many landlords like is the tactile nature of property – the fact that you can touch the bricks and mortar. It is this factor that attracts many of Tamworth’s landlords – they are making their own decisions rather than entrusting them to city whizz kids in Canary Wharf playing roulette with their savings.

I always say investing in property is a long-term game. When you invest in the property market, you can earn from your investment in two ways. When a property increases in value over time, it is known as ‘capital growth’. Capital growth, also known as capital appreciation, has been strong in recent times in Tamworth, but the value of property does go up as well as down just like shares do but the initial purchase price rarely decreases.  Rental income is what the tenant pays you – hopefully this will also grow over time. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return. So, over the last 5 years, an average Tamworth property has risen by £45,200 (equivalent to £24.77 a day), taking it to a current average value of £201,700. Yields range from 5% a year and can reach double digits’ percentages (although to achieve those sorts of returns, the risks are higher).

However, something I haven’t spoken of before is the more specialist area of flipping property to make money. (flipping – buying a property, carrying out some minor cosmetics and re selling it quickly).  I have seen several investors recently who have made decent returns from this strategy. For example …

Why not try to flip

Flipping Property

This demonstrates how the Tamworth property market has not only provided very strong returns for the average investor over the last five years but how it has permitted a group of motivated buy to let Tamworth landlords and investors to become particularly wealthy.

As my article mentioned a few weeks ago, more and more Tamworth people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to grow from strength to strength. If you want to know what (and what would not) make a decent buy to let property in Tamworth, then one place for such information would be the Tamworth Property Blog. http://www.tamworthpropertyblog.couk

Would you like some impartial advice on your next BTL or are you looking to break into the BLT market, why not give me a call 01827 425195  or email me lorraine@hallandthompson.co.uk

If you enjoyed reading my article, feel free to take a look my other online resources below:

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Lorraine’s Tamworth Property Market LinkedIn Page

Hall and Thompson Estate Agents Tamworth Facebook Page

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Hall and Thompson Estate Agents Website

Ask Lorraine – My Landlord Won’t Issue Another Tenancy!!

🙋  Tenant’s Question: 

”Dear Lorraine,

I have a twelve month tenancy agreement and my landlord had said she won’t issue a new one, it runs out in three weeks.  Is she right that my old tenancy will continue as is? Please advise, I don’t want to leave.

Renewing a tenancy
My Landlord Won’t Issue Another Tenancy!!

Lorraine’s Answer:

All assured shorthold tenancies will go periodic at the end of the fixed term period , as long as the tenant/s continue to live in the property.

Should the landlord create another fixed term tenancy, this may give you, the tenant more peace of mind. A renewal ties the tenant in for another twelve months, however if the tenant really wants to leave early into the tenancy, nothing will stop them.

The landlord on the other hand  cannot issue a section 21 to get their property back until after the four month of tenancy and then the landlord  would have to give two months notice.

So I really see no major advantage of renewing a tenancy, I’d let it run into periodic.

I hope I have put your fears to bed?

Some agents will  do a renewal of tenancy but that’s only because they charge a renewal fee.

Until next week

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.

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Don’t Forget you can keep up to date with all our articles on the Tamworth property Market here.

https://www.tamworthpropertyblog.co.uk

 

How The Rented Sector Has Transformed The Property Market In Tamworth

The Tamworth housing market has gone through a sea change in the past  decades with the Buy-to-Let (B-T-L) sector evolving as a key trend, for both Tamworth tenants and Tamworth landlords.

A few weeks ago, the Government released a White Paper on housing. I have had a chance now to digest the report and wish to offer my thoughts on the topic. It was interesting that the private rental sector played a major part in the future plans for housing. This is especially important for our growing Tamworth population

In 1981, the population of Tamworth stood at 65,200 and today it stands at 77,100.

Currently, the private rented (B-T-L) sector accounts for 10.9% of households in the town.  The Government want to assist people living in the houses and help the economy by encouraging the provision of quality homes, in a housing sector that has grown due to worldwide economic forces, pushing home ownership out of the reach of more and more people. Interestingly, when we look at the 1981 figures for homeownership, a different story is told.

55.5% Tamworth people owned their own home in 1981

41.24% Tamworth people rented from the Council or Housing Association in 1981

and 3.27% Tamworth rented from a Private Landlord

The significance of a suitable housing policy is vital to ensure suitable economic activity and create a vibrant place people want to live in. With the population of Tamworth set to grow to 80,000 by 2037 – it is imperative that Tamworth Borough Council and Central Government all work actively together to ensure the residential property market doesn’t hold the area back, by encouraging the building and provision of quality homes for its inhabitants.

Population of Tamworth

Population of Tamworth 1981 – 2037

One idea the Government has proclaimed is a variety of measures aimed at encouraging the Build-to-Rent (B-T-R) sector (instead of the B-T-L sector). These include allowing local authorities to proactively plan for B-T-R schemes, and making it simpler for B-T-R developers to offer inexpensive private rented homes.

To do this, the government will invent a distinct affordable housing class for B-T-R, called ‘Affordable Private Rent’, which will oblige new homes builders to at least 1 in 5 of a new home developments at a 20% discount on open-market rents and three year tenancies for tenants. In return, the new home builders will get better planning assurances.

Private landlords will not be expected to offer discounts, nor offer 3-year tenancies – but it is something Tamworth landlords need to be aware of as there will be greater competition for tenants.

Over the last ten years, home ownership has not been a primary goal for young adults as the world has changed. These youngsters expect ‘on demand’ services from click and collect, Amazon, Dating Apps and TV with the likes of Netflix. Many Tamworth youngsters see that renting more than meets their accommodation needs, as it combines the freedom from a lifetime of property maintenance and financial obligations, making it an attractive lifestyle option.

Private rented housing in Tamworth, be it B-T-L or B-T-R, has the prospective to play a very positive role.

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! lorraine@hallandthompson.co.uk  or 07531484956

Don’t forget to visit the links below to view back dated deals and Tamworth Property News.https://www.tamworthpropertyblog.co.uk

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