Tamworth House Prices up 31.5% in the last 5 Years

Over the last 5 years, we have seen some interesting subtle changes to the Tamworth property market as buying patterns of landlords have changed ever so slightly.

The background to this story was the recently published set of buy-to-let (BTL) lending statistics. Roll the clock back 12 months and 6,700 BTL mortgages were granted (in the same month) for £900m, meaning the average BTL mortgage was £134,200. Looking at last month’s figures, and as one might expect with the Brexit issue overhanging the property market, the lending figures were down, yet not by the amount I originally thought. Last month, just over 6,100 new buy-to-let mortgages were granted for a total sum of £800m (meaning the average landlord mortgage was a respectable £131,100). Yet, when I looked back to the boom year of the 2014 property market, in the corresponding same month, only £1,030 million was borrowed on 8,300 buy-to-let properties (meaning the average buy-to-let mortgage was £124,100). It seems Brexit is having no effect on landlords buying habits.

Looking closer to home in Tamworth, throughout 2018, I have been regularly chatting to more and more landlords, be they seasoned professional Tamworth BTL landlords or FTL’s (first time landlords) and their attitude is mostly positive. Instead of reading the scare-papers (oops sorry newspapers), those Tamworth landlords that look with their eyes, will see the Tamworth property market is doing reasonably well, with medium term rents and property values rising; as quite obviously from the mortgage figures .. landlords are still buying.

The question I get asked all the time is .. “What type of buy-to-let property should I buy?  You can make money from property through both the rent (expressed as a yield when compared to the value of the property) and how the actual value of the home itself changes.

Since 2014, property values in Tamworth have risen by 31.5%.

We have records of what each type of property (i.e. Detached/Semi/Terraced/Apartments) has achieved per square metre going back 20 years … and looking back over the last 5 years, these are the numbers ..

They all look to have similar percentage uplifts, however as you can see from the table there is in fact some variation throughout and although only slight this can equate to thousands of pounds in monetary terms.

This has proved that semis and terraced houses have performed the best .. although like the £/Sq.M figures, these are just averages. When investing, whilst Tamworth apartments haven’t been the best performers in terms of capital growth, they do tend to generate a slightly better yield than houses, probably because several sharers can afford to pay more than a single family. But houses tend to appreciate in value more rapidly and may well be easier to sell, simply because there are fewer being built.

Now these are of course averages, but it gives you a good place to start from. The bigger picture here though is this – irrespective of what is happening in the world, be it Brexit/no Brexit, China, Trump, whatever, Tamworth people still need a roof over their heads and we as a Country haven’t built enough homes to keep up with the demand since the late 1980’s. This means even if we have a short term wobble in 2019 when it comes to property values ..in the medium term, demand will always outstrip supply and prices and rents will increase – because, I doubt the local authority, let alone Westminster, have the billions of pounds required to build the one hundred thousand Council houses per year nationally for the next decade to fix this issue – meaning as the population increases, the only people who can fulfil the demand for accommodation in the medium term is the private BTL landlord.

Before I go …on average, housing associations and local authorities have built around 26,500 houses each year since 2010. The Labour government had a lower average, building about 19,000 homes per year, yet in the 1960’s, under both administrations, 180,000 councils were built per year!

Many of you reading my blog ask why I say these things. I want to share my thoughts and opinions on the real issues affecting the Tamworth property market, warts and all. If you want rose tinted glasses articles – then my articles are not for you. However, if you want someone to tell you the real story about the Tamworth property market, be it good, bad or indifferent, then maybe you should start reading my blog regularly.

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Tamworth Homeowners 73% More Likely To Live in a Home with 3+ Bedrooms than those that Privately Rent

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The conventional way of categorising property in Britain is to look at the number of bedrooms rather than its size in square metres (square feet for those of you over 50!). My intuition tells me that homeowners and tenants are happy to pay for more space. It’s quite obvious, the more bedrooms a house or apartment has, the bigger the property is likely to be. And it’s not only the tangible additional bedrooms, but those properties with those additional bedrooms tend to have larger (and more) reception (living) rooms. However, if you think about it, this isn’t so surprising given that properties with more bedrooms would typically accommodate more people and therefore require larger reception rooms.

In todays Tamworth property market, the Tamworth homeowners and Tamworth landlords I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive and which ones may detract from the price. Over time buyers’ and tenants’ wants and needs have changed.

In Tamworth, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods can achieve a price almost 50% higher than a similar house in an ‘average’ area. Nevertheless, after location, the next characteristic that has a significant influence on the desirability, and thus price, of property is the number of bedrooms and the type (i.e. Detached/Semi/Terraced/Flat).

The number of bedrooms for owner-occupiers very much depends on the size of the family and the budget, whilst Tamworth landlords have to consider the investment opportunity. In this article, I have analysed Tamworth’s housing stock into bedrooms and tenure. Initially looking at Tamworth homeowners..

And now the Private rented sector …

It can quite clearly be seen that Tamworth owner-occupiers tend to occupy the larger properties with more bedrooms. This would be expected due to the demographic of homeowners and people that privately rent.

However, this shows there could be opportunities for Tamworth buy to let landlords to purchase larger properties with more bedrooms to attract tenants requiring properties with more bedrooms. However, before you all go buying larger 4 bed and 5 bed mansions to rent them out, a lot of bigger properties in Tamworth don’t make financial sense when it comes to buy to let.

For numerous years Tamworth buy to let landlords have been the lone buyers at the smaller one and two bed starter homes of the market, as they have been lured by elevated tenant demand and eye-catching returns. Some Tamworth landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first time buyers. This is great news for first time buyers .. but one final note for Tamworth landlords .. all is not lost .. you can still pick up bargains, you just need to be a lot more savvy and do your homework ..one source of such information with articles like this is the Tamworth Property Market Blog https://www.Tamworthpropertyblog.co.uk

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25.9% of All Tamworth Properties were Bought Without a Mortgage in the Last 7 Years

Tamworth
Tamworth

For most Tamworth people, a mortgage is the only way to buy a property. However, for some, especially Tamworth homeowners who have paid off their mortgage or Tamworth buy to let landlords, many have the choice to pay exclusively with cash. So the question is, should you use all your cash, or could a mortgage be a more suitable option?

Well, looking at the numbers locally…

1,784 of the 6,890 property sales in the last 7 years in Tamworth were made without a mortgage (i.e. 25.9%)

Interesting when compared with the national average of 31.9% cash purchases over the last seven years. Next, I wanted to see that cash percentage figure split down by years. As you can see from the graph, this level of cash purchases vs mortgage purchases has remained reasonably constant over those seven years…

Next, if you are going to go for a mortgage, the next question has to be whether you should fix the rate or have a variable rate mortgage. In the last Quarter, 90.57% of people that took out a mortgage, had a fixed rate mortgage at an average interest rate of 2.27%, although what did surprise me was only 65.79% of the £1.429 trillion mortgages outstanding in the whole of the UK were on a fixed rate.

The level of mortgage debt compared to the value of the home itself (referred to as the Loan to Value rate – LTV) was interesting, as 61.9% of people with a mortgage have a LTV of less than 75%. Although, one number that did jump out at me was only 4.33% of mortgages are 90% and higher LTV – meaning if we do have another property slump, the number of people in negative equity will be relatively small.

Next, looking at the actual number of properties sold, it can be clearly seen the number of house sales has dipped slightly in 2018…

So those are the numbers … let us have a look at the pros and cons of taking a mortgage, with specific focus on Tamworth buy to let landlords.  

Taking a mortgage will help a landlord increase their investment across more properties to maximise the return, rather than putting everything into one Tamworth buy to let property. This will enable the landlord to ensure if there a void in the tenancy, there should still be rent coming from the other properties. The flip side of the coin is that there is a mortgage to pay for, whether or not the property is let.

The other great motivation of taking a mortgage is that landlords can set the mortgage interest against the rental income, although that will only be at the basic rate of tax by 2021 due the recent tax changes. Banks and Building Societies will characteristically want at least a 25% deposit (meaning Tamworth landlords can only borrow up to 75%) and will assess the borrowing level based on the rental income covering the mortgage interest by a definite margin of 125%.

A lot will depend on what you, as a Tamworth landlord, hope to attain from your buy to let investment and how relaxed you would feel in making the mortgage payments when there is a void (interestingly, Direct Line calculated a few months ago that voids cost UK landlords around £3bn a year or an average of £1000 per property per year). You also have to consider that interest rates could also increase, which would eat into your profit … although that can be mitigated with fixing your interest rate (as discussed above).

So, with everything that is happening in the world, does it make sense to buy rental properties? Now we help many newbie and existing landlords work out their budgets, taking into account other costs such as agent’s fees, finance, maintenance and voids
in tenancy.

The bottom line is we as a country aren’t building enough property, so demand will always outstrip supply in the medium to long term, meaning property values will keep rising in the medium to long term. That’s not to say property values might fall back in the short term, like they did in 2009 Credit Crunch, the 1988 Dual MIRAS crash, the recession of the early 1980’s, the 1974 Oil Crisis, the early 1930’s Great Depression … yet every time they have bounced back with vigour. Therefore, it makes sense to focus on getting the best property that will have continuing appeal and strong tenant demand and to conclude, buy to let should be tackled as a medium to long term investment … because the wisest landlords see buy to let investment in terms of decades – not years.

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Tamworth Homeowners Have Made an Annual Profit Of £6,781 Since the Millennium

As we go full steam ahead into 2019, it’s certain that the Tamworth housing market in 2018 was a little more restrained than 2016 and 2017 and I believe this will continue into 2019. Property ownership is a medium to long term investment so, looking at the long-term, the average Tamworth homeowner, having owned their property since the Millennium, has seen its value rise by more than 180%.

This is important, as house prices are a national obsession and tied into the health of the UK economy as a whole. The preponderance of that historical gain in Tamworth property values has come from the growth in Tamworth property values, while some of it will have been enhanced by extending, modernising or developing their Tamworth home.

Taking a look at the different property types in Tamworth, and the profit made by each type, makes interesting reading..

However, we can’t forget there has been just over 60% inflation over those 18 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2000, the true spending power of that profit has been lower.

 So the ‘real’ value of the profit, after inflation, in Tamworth has been £4,140 per year.. still nothing to sniff at.

I wanted to show you that even though we had the 2008/09 Credit Crunch property market crash where, depending on the type of Tamworth property, property values dropped between 15% and 20% in 18 months … Tamworth homeowners over the long term are still better off than those renting.

Moving forward, the question I get asked time and again is what will happen in the future to the Tamworth Property market? Irrespective of what is happening in the World, Europe or even Central London, the biggest factor over the medium to long term to ensure that this level of house price growth is maintained in Tamworth is the building of new homes both locally and in the country as a whole. Whilst we haven’t had the 2018 stats yet, Government sources suggest this will be nearer 180,000 to 190,000, a decrease from the 2017 figure of 217,350 new households being created. When you consider that we need to build 240,000 households to equal demand (immigration, people living longer, higher divorce rates and people co-habiting later in life etc) … demand will outstrip supply and unless the Government start to spend billions building council houses .. this trend will continue for years (and decades to come).

Another factor is that whilst Tamworth landlords have been hit with higher taxes to enable them to actually be a landlord most, in every national survey, still intends to increase their portfolio in the medium to long term. The youngsters of Tamworth see renting as a choice, giving them flexibility and options that being tied to a home cannot give… thus meaning demand will continue to grow and landlords will be able to enjoy increased rents and capital growth, although those very same Tamworth buy to let landlords will have to work smarter in the future to continue to make decent returns (profits) from their buy to let investments. Even with the tempering of house price inflation in Tamworth in 2018, most Tamworth buy to let landlords (and homeowners) are still sitting on a copious amount of growth from previous years.

The question is, how do you, as a Tamworth buy to let landlord, ensure that continues?

Since the 1990’s, making money from investing in buy to let property was as easy as falling off a log. Looking forward though, with all the changes in the tax regime and balance of power, making those similar levels of return in the future won’t be so easy. Over the last ten years, I have seen the role of the forward thinking agents evolve from a person collecting the rent to a more all-inclusive role; I call it, ‘strategic portfolio leadership’. Thankfully, along with myself, there are a handful of agents in Tamworth whom I would consider exemplary at this landlord portfolio strategy where they can give you a balanced structured overview of your short, medium and long-term goals, in relation to your required return on investment, yield and capital growth requirements. If you would like such advice, speak with your current agent – whether you are a landlord of ours or not – without any cost or commitment, feel free to drop me a line.

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Ask Lorraine – Letting Agent is asking for lots of information

ASK Lorraine

I was talking this weekend to a couple, I will call them Sandra & Jim. Apparently this couple were looking to move to Tamworth and had decided to try and rent through another private landlord, “Agents ask too many questions and charge too much in fees”.

So here is a little story………Parts of it are true other parts embelished to show that there are laws to renting out property!

Sandra went on to inform me that when they moved into their current property 3 months ago, they paid no fees to their kindly landlord and only 1 months rent as a deposit. The discounted council tax was paid in cash to the landlord. He ensured it was paid to the council, after all it was one less thing to have to think about, right!

What a shame that this kindly person is actually a rogue Landlord.

The landlord asked no questions and made no fuss! What he should have done was ask the right questions, carried out the Right to Rent checks as specified in the Immigration Act 2016.

So this rogue landlord had allowed the couple to rent a property. In actual fact if he had undertaken the correct checks, he would have found out the couple were not British citizens, nor citizens of a country in the EU or EEA, nor citizens of a country with no time limits on permission to live in the UK. Sandra and Jim should not have been allowed to rent a property.

The landlord did not provide his new tenants with the How to Rent booklet, annual gas safety inspection certificate, an energy performance certificate and a smoke alarm.

Sandra had found the new house very cold as the boiler was “waiting for a new part”. So the kindly landlord had given them an old coal fire and a big bag of coal as a temporary measure.

At least they would be warm in the living room with the coal fire blazing away and as the coal was cheap enough, they could easily leave the fire burning all night. It had been so nice of the landlord to offer this coal fire and weren’t they lucky they had a chimney place suitable for the coal fire.

They did not know that the landlord should have provided a carbon monoxide alarm.  (The Smoke and Carbon Monoxide Alarm (England) Regulations 2015). 

The Landlord asked for cash each week for the couple’s rent he never offered receipts or even a rent book. Sandra and Jim were unaware of their rights. The Landlord was either unaware or unwilling to comply with the 1988 Housing Act that if rent is paid weekly a rent book must be provided.

Sandra had set up a little nail business in the spare bedroom and was doing very well, she was hoping the business would be equally successsful in Tamworth.

The landlord was not happy when the elderly lady next door started complaining about lots of visitors coming at all hours of the day and night. The garden gate was often left to bang shut and this caused a nuisance to the elderly neighbour.

The landlord decided that he was going to evict using a Section 21 – but the tenancy must run at least 4 months before a notice could be served. What he has not realised, at the expiry of the notice, he will be expected to take them to Court, where his case would be thrown out because he did not serve the How to Rent booklet, or the Energy Performance Certificate, or the Gas Safety Certificate, nor did he protect the deposit. Had Jim and Sandra known more about the law and been in the property legally, they would have realized they could have visited the Citizens Advice Bureau and taken the landlord to Court for three times the deposit amount.

Legislation has a purpose; it seeks to provide a good standard of accommodation for all, to ensure that rent is paid for properties fit for purpose. Sandra and Jim may have had a low expectation of rental properties and did not know their rights however as Asylum Seekers, they needed to seek the assistance of the Home Office, not a landlord who risks a hefty fine or even a prison sentence. The landlord would also have HMRC chasing him for not declaring his rental income.

Hall & Thompson Tamworth  –  Estate/Property Lettings Agents.

From tenant find only, right through to a fully managed service, Hall & Thompson offer a personal property experience. We can be involved in letting a property and can take away the trials and tribulations that landlords often encounter when dealing with this themselves.

Residential lettings can provide attractive returns on investment and we can advise.

Our wide range of lettings services can help you to achieve your letting property investment goals, at a fraction of the cost of most high street letting agencies.

Call or message me today to have a natter. lorraine@hallandthompson.co.uk

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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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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.

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Buying A Tamworth Property With An Existing Tenant

Has my Tamworth lodger become my accidential tenant?

My best friend came to visit me nearly three years ago, she stayed on and rented one of my rooms.  With low rent and fully inclusive of all bills, she had a great deal.

After 6 months I went to live with my partner so rented out another room in my house. Shortly after I moved out  my best friends son came to stay and has been there ever since.

When I was  advised recently I had created a HMO, I told my friend that her son had to leave the property, she advised that she would be vacating when he did. I then gave them a polite written notice that I wanted them both the leave.

When the second tenant left  6 weeks ago I locked her room to prevent it being used.

My question is – As nothing was ever put down on paper, Is my friend to be treated as a tenant?

What happens if she decides not to move out voluntarily? And how do I handle her son?

Many thanks

 

game over
game over

 

 

 

 

 

 

 

As they can only be a lodger while you live in the property it looks like you have created a tenancy.

Keep things as pleasant as possible and hope that things do not break down between all parties.  If your friend and her son do decide not to move out, I would recommend that you seek professional advice as soon as possible.

I hope all goes well.

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