Tamworth Rents To Rise Quicker Than Tamworth Property Prices In Next 5 Years

The next five years will see an interesting change in the Tamworth property market. My recent research has concluded that the rent private tenants pay in Tamworth will rise faster than Tamworth property prices over the next five years, creating further issues to Tamworth’s growing multitude of renters. In fact, my examination of statistics forecasts that ..

Tamworth property values and rents

By 2022, Tamworth rents will increase by 23%, whereas Tamworth property values will only grow by 16%.

Let me explain why I have come to those conclusions:

Over the last five years, property values in Tamworth have risen by 25.9%, whilst rents have only risen by 17.1%.

Tamworth property values

Tamworth property values

Throughout the last few years, and compounded in 2016, tenant demand for rental properties continued to go up whilst the Press predicted some landlords expect to reduce their portfolios in the next couple of years, meaning Tamworth tenants will have fewer properties to choose from, which will push rents higher. In fact, talking to fellow property professionals in Tamworth, there appears to be privation and shortage of new rental properties coming on to the Tamworth lettings market.

Landlords have some intriguing challenges ahead of them in the coming years most notably in that the Tory’s have changed the taxation rules for landlords in the way buy to let properties are to be taxed. On top of that, there is the ban on letting agent fees which is still to come into force (probably in 2018). When that happened in Scotland in 2012, Scottish letting agents passed on those fees to their landlords, who in turn increased the rent they charged to their tenants.

All I would say to Theresa May and Philip Hammond is that they must be wary about indicating both red and green lights at the same time to the private rented sector. They can’t expect the armies of small private landlords to continue to house around a fifth of the population and then tax the hell out of them. They didn’t invest in buy to let as a charity or to satisfy any philanthropic urges. Something has to give – and that will be significant rent rises over the coming few years (and before anyone gives me any derogatory comments about landlords … if it wasn’t for landlords buying all these buy to let properties over the last 15 years, I am not sure where everyone would be living today – because most the Council houses were sold off in the 1980’s!).

With the challenges ahead, with the ‘B’ word (that’s budget if you wondered!), house price inflation will be tempered over the coming five years in Tamworth. As I have discussed in previous articles, the number of properties on the market in Tamworth remains close to historic lows, which is both good as it keeps houses prices relatively stable, yet not so good as it impedes choice for buyers… and hence why I believe property values in Tamworth will only be 16% higher in five years’ time.

Whilst on the other side of the coin, with the challenges facing landlords and the significant shortage of new homes being built, Tamworth people still need somewhere to live. If those people aren’t buying houses and the local authority aren’t building council houses in there thousands (because they have no money), with the average rent for a Tamworth rental property currently standing at £762 per month …

Over the next five years, I predict the average rent

in Tamworth will rise to £937 per month

These are interesting times. There is still money to be made in buy to let in Tamworth – Tamworth landlords will just need to be smarter and more savvy with their investments. If you are looking for such advice and opinion to help you meet those investment goals, one place you can find more information is the Tamworth Property Blog https://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

https://www.facebook.com/hallandthompsonestateagents

http://www.hallandthompson.co.uk

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

http://www.hallandthompson.co.uk

http://www.facebook.com/Hallandthompsonestateagents/

https://twitter.com/hallandthompson

 

 

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

http://www.hallandthompson.co.uk

https://www.facebook.com/groups/1627669040852754/

https://www.facebook.com/Hallandthompsonestateagents/

https://twitter.com/hallandthompson

Tamworth’s ‘Generation Trapped’ and the £3.77bn legacy

 

Last week, I wrote an article on the plight of the Tamworth 20 something’s often referred to by the press as ‘Generation Rent’. Attitudes to renting have certainly changed over the last twenty years and as my analysis suggested, this change is likely to be permanent. In the article, whilst a minority of this Generation Rent feel trapped, the majority don’t – making renting a choice not a predicament. The Royal Institution of Chartered Surveyors (RICS) predicted that the private rental sector is likely to grow substantially by 1.8m households across the UK in the next 8 years, with demand for rental property unlikely to slow and newly formed households continuing to choose the rental market as opposed to buying.

However, my real concern for Tamworth homeowners and Tamworth landlords alike, as I discussed a couple of months ago, is our mature members of the population of Tamworth. In that previous article, I stated that the current OAP’s (65+ yrs in age) in Tamworth were sitting on £1.43bn of residential property … however, I didn’t talk in depth about the ‘Baby Boomers’, the 50yr to 64yr old Tamworth people and what their properties are worth – and more importantly, how the current state of affairs could be holding back those younger Generation Renters.

In Tamworth, there are 6,042 households whose owners are aged between 50yrs and 64yrs and about to pay their mortgage off. That property is worth, in today’s prices, £1.21bn. There are an additional 5,570 mortgage free Tamworth households, owned by 50yr to 64yr olds, worth £1.12bn in today’s prices, meaning…

Tamworth Baby Boomers and Tamworth OAP’s are sitting

on £3.77bn worth of Tamworth Property

Tamworth property

Tamworth property  these Tamworth Baby Boomers and OAP’s are sitting on 18,701 Tamworth properties and many of them feel trapped in their homes, and hence I have dubbed them ‘Generation Trapped’.

Recently, the English Housing Survey stated 49% of these properties owned by the Generation Trapped, as I have dubbed them, are ‘under-occupied’ (under-occupied classed as having at least two bedrooms more than needed). These houses could be better utilised by younger families, but research carried out by the Prudential suggest in Britain it’s estimated that only one in ten older people downsize while in the USA for example one in five do so.

The growing numbers of older homeowners who want to downsize their home are often put off by the difficulties of moving. The charity United for all Ages, suggested recently many are put off by the lack of housing options, 19% by the hassle and cost of moving, 14% by having to declutter their possessions and 14% by family reasons such as staying close to children and grandchildren.

Helping mature Tamworth (and the Country) homeowners to downsize at the right time will also enable younger Tamworth people to find the homes they need – meaning every generation wins, both young and old. However, to ensure downsizing works, as a Country, we need more choices for these ‘last time buyers’.

Theresa May and Philip Hammond can do their part and consider stamp duty tax breaks for downsizers, our local Council in Tamworth and the Planning Dept. should play their part, as should landlords and property investors to ensure Tamworth’s ‘Generation Trapped’ can find suitable property locally, close to friends, family and facilities.

If you spot a property and would like a second opinion then feel free to get in touch with me. My only interest is to make sure you get the best outcome from your investment. Rest assured I have no motive to try and sell you a house and I will not be biased towards any one vendor.

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. https://www.tamworthpropertyblog.co.uk

http://www.hallandthompson.co.uk

https://www.facebook.com/hallandthompsonestateagents

https://twitter.com/hallandthompson

 

 

‘Generation Rent (Forever)’ – 2,961 Tamworth Tenants have no intention of ever buying a property to call home

Generation rentThe good old days of the 1970’s and 1980’s eh … with such highlights lowlights as 24% inflation, 17% interest rates, 3 day working week, 13% unemployment, power cuts … those were the days (not)… but at least people could afford to buy their own home. So why aren’t the 20 and 30 something’s buying in the same numbers as they were 30 or 40 years ago?

Many people blame the credit crunch and global recession of 2008, which had an enormous impact on the Tamworth (and UK) housing market. Predominantly, the 20 something first-time buyers who, confronting a problematic mortgage market, the perceived need for big deposits, reduced job security and declining disposable income, discovered it challenging to assemble the monetary means to get on to the Tamworth property ladder.

However, I would say there has been something else at play other than the issue of raising a deposit – having sufficient income and rising property prices in Tamworth. Whilst these are important factors and barriers to home ownership, I also believe there has been a generational change in attitudes towards home ownership in Tamworth (and in fact the rest of the Country).

Back in 2011, the Halifax did a survey of thousands of tenants and 19% of tenants said they had no plans to buy a home for themselves. A recent, almost identical survey of tenants, carried out by The Deposit Protection Service revealed, in late 2016, that figure had risen to 38.4%, with many no-longer equating home ownership to success and believing renting to be better suited to their lifestyle.

You see, I believe renting is a fundamental part of the housing sector, and a meaningful proportion of the younger adult members of the Tamworth population choose to be tenants as it better suits their plans and lifestyle. Local Government in Tamworth (including the planners – especially the planners), land owners and landlords need an adaptable Tamworth residential property sector that allows the diverse choices of these Tamworth 20 and 30 year olds to be met.

This means, if we applied the same percentages to the current 7,711 Tamworth tenants in their 3,300 private rental properties, 2,961 tenants have no plans to ever buy a property – good news for the landlords of those 1,267 properties. Interestingly, in the same report, just under two thirds (62%) of tenants said they didn’t expect to buy within the next year.

.. but does that mean the other third will be buying in Tamworth in the next 12 months?

Who is planning to buy a Tamworth property soon

Tamworth Tenants

Some will, but most won’t … in fact, the Royal Institution of Chartered Surveyors (RICS) predicts that, by 2025, that the number of people renting will increase, not drop. Yes, many tenants might hope to buy but the reality is different for the reasons set out above.  The RICS predicts the number of tenants looking to rent will increase by 1.8 million households by 2025, as rising house prices continue to make home ownership increasingly unaffordable for younger generations.  So, if we applied this rise to Tamworth, we will in fact need an additional 1,414 private rental properties over the next eight years (or 177 a year) … meaning the number of private rented properties in Tamworth is projected to rise to an eye watering 4,714 households.

For more insight and thoughts like this on the Tamworth Property Market – please visit the Tamworth Property Blog at https://www.tamworthpropertyblog.co.uk

Are you looking to get into the rental market, have you seen a property and you’re not sure if it’s a good buy? Why not give me a call to discuss 01827 425195 or email me  lorraine@hallandthompson.co.uk

http://www.hallandthompson.co.uk

https://www.facebook.com/hallandthompsonestateagents

https://twitter.com/hallandthompson

 

 

 

With 7,711 people in Private Rented Properties in Tamworth – Should you still be investing in Tamworth Buy To Let?

If I were a buy to let landlord in Tamworth today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Tamworth property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Tamworth property prices do drop, the downside to that is that first time buyers could be attracted back into the Tamworth property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Tamworth landlord, almost a blessing in disguise.

Tamworth has a population of 73,572, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Tamworth – Accommodation Type and the Number of Occupiers
Owned outright – Tamworth Owned with a mortgage – Tamworth Shared ownership (part owned and part rented) – Tamworth Social rented (aka Council Housing) –  Tamworth Private rented – Tamworth Living rent free – Tamworth
16,678 34,977 315 13,432 7,711 459
22.7% 47.5% 0.4% 18.3% 10.5% 0.6%

Yields will rise if Tamworth property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Tamworth landlords add to their portfolio. Rental demand in Tamworth is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Tamworth landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my husbands relations after a family get together. I got chatting with my husbands nephew and his partner.  Both are in their mid/late twenties, both have decent jobs in Tamworth and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a 50 something, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 10.5% of Tamworth people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Tamworth – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch – there is nothing like bricks and mortar!

For more views and opinions on the Tamworth Property Market – visit the Tamworth Property Market Blog https://www.tamworthpropertyblog.co.uk

Give me a call or drop me an email lorraine@allandthompson.co.uk if you would like a chat or a cup of coffee and we can talk houses, houses, and more houses.

http://www.hallandthompson.co.uk

https://www.facebook.com/hallandthompsonestateagents

Ask Lorraine – My tenant has refused to supply a forwarding address

🙋  Landlord’s Question: 

”Dear Lorraine,

My tenant has refused to supply a forwarding address, how can I  inform the relevant authorities if I don’t have the information?

My tenant has refused to supply a forwarding address

Lorraine’s Answer

I don’t know anywhere that says it’s a legal requirement to leave a forwarding address, however I’m a little concerned why the tenant did not feel able or want to give you this.

Did the tenancy end on friendly terms?

As a tenancy ends do you advise your tenants, that  in order to send mail on that has not been redirected, you require a forwarding address. It’s surprising the number of people who do not redirect mail!

Do you take a deposit – I’m sure the tenant would like their deposit back quickly. Then you require a forwarding address to enable you to complete the Deposit Return process forms. Without a forwarding address the deposit can take many months to be returned to either the tenant or landlord. I usually find that tenants are only too willing to give me their forwarding address where a deposit is involved.

If you do take a forwarding address, don’t forget to advise the utility companies including all meter readings and of course don’t forget to advise the local council so that they can chase any outstanding council tax.

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! https://www.tamworthpropertyblog.co.uk

https://www.facebook.com/hallandthompsonestateagents

http://www.hallandthompson.co.uk

 

 

192 Tamworth Households Occupied by OAP Renters

Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the Country that are occupied by people aged 65 and older, meaning 4.39% of OAP’s are living in private rented property.

It got me thinking two things. How many of these OAP’s have always rented and how many have sold up and become a tenant?  In retirement, selling up could make financial sense to the mature generation in Tamworth, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy to let landlords of Tamworth?

The Prudential published a survey recently that said nearly six out of ten OAP renters had never owned a home.  Two out of ten OAP renters were required to sell up because of debt, just about one in ten OAP renters sold their property to use the money to fund their retirement and the remaining one out ten OAP renters, rented for other reasons.

Funding retirement is important as the life expectancy of someone from Tamworth at age 65 (years) is 18.4 years for males and 20.7 years for females (interesting when compared to the National Average of 18.7 years for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature people of Tamworth.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of Tamworth?  Of the 7,239 households in Tamworth, whose head of the household is 65 or over, not surprisingly 5,236 of households were owned (72.33%) and 1,631 (22.53%) were in social housing.  However, the figure that fascinated me was the 192 (2.65%) households that were in privately rented properties.

Tenure: Owned; Tenure: Shared ownership (part owned and part rented); Tenure: Rented from council (Local Authority Tenure: Private rented; Tenure: Living rent free;
72.33% 0.26% 22.53% 2.65% 2.22%

Anecdotal evidence, by talking to both my team and other Tamworth property professionals is that this figure is rising.  More and more Tamworth OAP’s are selling their large Tamworth homes and renting something more manageable, allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder), invested in plans that produce a decent income and while living the life they want to live.

These Tamworth OAP renters know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being an OAP – the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn’t leave family members panicking to sell the property to fund care-home fees.

Tamworth landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.  Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact us to find out how we can get the best out of your investment property. Email me  on lorraine@hallandthompson.co.uk or give me a call on 07531484956. We can always meet up for a chat and a coffee, we can even walk the dog.

My work experience person.

 

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

Follow The Buy-To-Let Property Investment Market in Tamworth

Lorraine’s Tamworth Property Market LinkedIn Page

Hall and Thompson Estate Agents Tamworth Facebook Page

Tamworth Hall and Thompson Estate Agents Twitter Page

 

 

 

 

 

 

 

 

 

 

 

Ask Lorraine – My tenant is refusing me access so that I can do my annual checks. What can I do?

🙋 Landlord’s Question: 

”Dear Lorraine,

My tenant is refusing access so that I can do my annual checks. What can I do to ensure they give me access?”

Lorraine’s Answer:

At this time of year, we often receive calls from landlords about problems they are facing in gaining access to rental properties.

When a landlord lets a property he is agreeing to give the tenant exclusive possession of that property and quiet enjoyment.

Check your tenancy agreement that you have a section which covers right of entry. Without the tenants permission or unless of course there is a real emergency you could be charged with trespass and the tenant could well claim damages against you or your agent. Not a nice thought when you are only trying to do your job!

Access is only permitted in one of two ways – a provision in the tenancy agreement or where the law grants a right of access, for instance, an emergency or to inspect or carry out repairs.
Landlords and agents should always give tenants notice of their impending visit, check your tenancy agreement as to the amount of notice you have to give. If the amount of notice is not stipulated on the tenancy agreement, landlords can use s11, Landlords and Tenant Act 1985 which allows access for repairs as long as landlords or agents give 24 hours notice prior to entering a rented property.

Landlords and agents should always look to give reasonable notice for access, keeping on friendly terms with tenants does help, however if the tenant is being unreasonable and constantly refusing access then the landlord or agent faces a very difficult situation. Speak to the council they may be able to help, after all if the tenant makes a complaint about the disrepair of the property to them, the council are quick to act then. Last and my least favourable option, due to the expense is to seek an injunction in the court to force your access.

It won’t hurt to be a good and friendly landlord, after all a bit of sugar goes a long way.

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.

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

Follow The Buy-To-Let Property Investment Market in Tamworth

Lorraine’s Tamworth Property Market LinkedIn Page

Hall and Thompson Estate Agents Tamworth Facebook Page

Tamworth Hall and Thompson Estate Agents Twitter Page

£23m a year black hole in the Tamworth Property Market – Is Buy to Let Immoral? (Part 2)

 

An Englishman’s Home is His Castle as Maggie Thatcher lauded – everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Home ownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.

But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Tamworth buy to let properties as an investment. Tamworth first time buyers were in competition with Tamworth landlords to buy these smaller starter homes … pushing house prices up in the 2000’s (as mentioned in Part One) beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Tamworth landlords fanning the flames of the Tamworth housing crisis bonfire?

I believe that the landlords of the 3,300 Tamworth rental properties are not exploitive and are in fact, making many positive contributions to Tamworth and the people of Tamworth. Like I have said before, Tamworth (and the rest of the UK) isn’t building enough properties to keep up the demand; with high birth rate, job mobility, growing population and longer life expectancy.

According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.

It doesn’t sound a lot of difference, so let us look at what this means for Tamworth …

For Tamworth to meet its obligation on the building of new homes, Tamworth would need to build 264 households each year. Yet, we are missing that figure by around 110 households a year.

For the Government to buy the land and build those additional 110 households, it would need to spend £23,199,927 a year in Tamworth alone. Add up all the additional households required over the whole of the UK and the Government would need to spend £23.31bn each year … the Country hasn’t got that sort of money!

The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.

So only you, the reader, can decide if buy to let is immoral, but first let me ask this question – if the private buy to let landlords had not taken up the slack and provided a roof over these people’s heads over the last decade .. where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!

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.

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

Follow The Buy-To-Let Property Investment Market in Tamworth

Lorraine’s Tamworth Property Market LinkedIn Page

Hall and Thompson Estate Agents Tamworth Facebook Page

Tamworth Hall and Thompson Estate Agents Twitter Page