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 sole trader letting agent has died and his accounts are frozen!!

🙋 Landlord’s Question: 

“I’m a landlord of two houses. I use an agent to manage them. He is a sole trader and really the business is him. RIP
He was a terrific man and sadly he died last week.
I spoke with his widow when the rent for one of the houses didn’t come to me. She explained about his death and that the bank account to which the rents go to have been frozen by the bank.
I want to support her as much as I can, but at the same time need to ensure that I can recover any monies due to me and all future monies are not frozen.
Can you help?”

ask Lorraine

Lorraine’s Answer

This is very sad for all concerned.

If he was a sole trader, then all contracts that you had with him ceased at the point he died.
If the account was frozen, the tenant should have had the money returned to them. However, if any money is still sitting in his account owable to you, you may find it trickier to claim, although I am sure that his executor will be cooperative.
I think that the money might need to be returned to the tenant and for you to then have them pay you directly.
Obviously important to get new payment details to the tenants as well.

As he was a sole trader, anything he owed to you must now be paid to you by his estate. Write to the executor and / or his wife asking for the money, albeit with some tact.

As the management contract was ended by his death, you are free to make arrangements with any other agent you wish.

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

Buy to let investment – Freville Close, Tamworth – Gross Yield 6.21%

One of my clients happened to be in the hairdressers the other day and we got talking about the Tamworth property market. She wanted to know about the implications of the Stamp Duty hikes and new taxation rules coming in to force in April. Was it all doom and gloom for private landlords.

Well despite these changes coming into force, landlords are still investing in buy to let, so I spent a good 10 minutes trawling through the portals and spotted this cracking 3 bedroom semi  that would make an ideal long term rental investment.

Located on Freville Close  which is  just a short walk to the town centre, train station and local shops.

In good overall condition and coming in with 710.01 sq ft of space, a slight freshen up and the property is ready to be rented.

The rent on this property is going to be £725 pcm and based on the asking price, if you pay £140,000  that will give you a gross yield of 6.21% .

On the market with local agents Bairstow Eves .

http://www.rightmove.co.uk/property-for-sale/property-64739660.html

B79 Tamworth
Freville Close

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

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

 https://tamworthpropertyblog.co.uk

Tamworth Property Market  LinkedIn Page

https://www.linkedin.com/in/lorrainethompson2/

Hall & Thompson Tamworth      Facebook Page

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

Hall & Thompson     Twitter Page

https://twitter.com/hallandthompson

£5.46bn – The total value of all Tamworth Property Market

Tamworth property market value

“How much would it cost to buy all the properties in Tamworth?”

This fascinating question was posed by the 14-year-old son of one of my Tamworth landlords, he’s telling me that he’s going to be a property tycoon. I thought to myself, that over the weekend, I would sit down and calculate what the total value of all the properties in Tamworth are worth … and just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2002.

In the last 14 years, since the autumn of 2002, the total value of Tamworth property has increased by 79% or £2.41 billion to a total of £5.46 billion. Interesting, when you consider the FTSE100 has only risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.

When I delved deeper into the numbers, the average price currently being paid by Tamworth households stands at £201,732.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Tamworth; the average numbers come out like this ..

Tamworth Property Market
Average Value of a Detached Property Average Value of a Semi-Detached Property Average Value of a Terraced/Town House Property Average Value of an Apartment
£293,535 £148,868 £150,210 £114,056

… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. As detached houses are so expensive, when you compare them with the much cheaper terraced/town houses and apartments, you can quite clearly see how valuable detached properties are in terms of total pound note value, when compared to the value of the terraced/town houses and apartments.

Total Value of all the Tamworth Detached Properties Total Value of all the Tamworth Semi-Detached Properties Total Value of all the Tamworth Terraced/Town House Properties Total Value of all the Tamworth Apartments
£2,215,602,180 £1,740,564,656 £1,042,457,400 £462,383,024

 

Total Value of Tamworth Property by Property Price

So, what does this all mean for Tamworth?  Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Tamworth remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.

Tamworth house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth.  Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Tamworth not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Tamworth has always, and will always, ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2017 Tamworth Property Market. As always, all my articles can be found at the Tamworth Property Market Blog www.Tamworthpropertyblog.co.uk

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

Ask Lorraine – My Tenant Had A Pet In The Property & I Don’t Allow Pets!!!!

🙋  Landlord’s Question: 

”Dear Lorraine,

My  tenant had a pet in the property I own. Their tenancy agreement stated that pets were not allowed at beginning of tenancy and at no time did I agree to allow a pet into the property.

I was rather remiss in carrying out inspections. Now they have moved out that I’ve noticed evidence of pet damage to doors, carpets and the general smell of the property. They have lived in the property for 2 years.

Please Advise.

Lorraine’s Answer

I hear this story so many times from self managing Landlords who have neglected to carry out regular inspections.

I would say that any damage caused by the tenant  or their pets are  the tenants liability and this is where the deposit can be used  (and if not sufficient deposit, the tenant can be pursued for the shortfall). If you have taken a deposit and can provide evidence that the tenants, while in occupation have caused the damage, you should be able to claim.  Do you have the time and inclination to pursue, if not, it’s a valuable lesson learned and it’s time to move on!

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

Tamworth’s private renting set to hit 4,653 households by 2021 – Is Buy to Let immoral? (Part 1)

Can we blame the 55 to 70-year-old Tamworth citizens for the current housing crisis in the town?

Also known as the ‘Baby Boomer Generation’, these Tamworth people were born after the end of the Second World War as the country saw a massive rise in births as they slowly recovered from the economic hardships experienced during wartime.

Throughout the 1970’s and 1980’s, they experienced (whilst in their 20’s, 30’s and 40’s) an unparalleled level of economic growth and prosperity throughout their working lifetime on the back of improved education, government subsidies, escalating property prices and technological developments, they have emerged as a successful and prosperous generation.

…Yet some have suggested these Tamworth baby boomers have (and are) making too much money to the detriment of their children, creating a ‘generational economic imbalance’, where mature people benefit from house-price growth while their children are forced either to pay massive rents or pay large mortgages.

Between 2001 and today, average earnings rose by 65%,

but average Tamworth house prices rose by 111.46%

The issue of housing is particularly acute with the generation called the Millennials, who are young people born between the mid 1980’s and the late 1990’s. These 18 to 30 years, moulded by the computer and internet revolution, are finding as they enter early adult life, very hard to buy a property, as these ‘greedy’ landlords are buying up all the property to rent out back to them at exorbitant rents … it’s no wonder these Millennials are lashing out at buy to let landlords, as they are seen as the greedy, immoral, wicked people who are cashing in on a social despair.

Like all things in life, we must look to the past, to appreciate where we are now.

The three biggest influencing factors on the Tamworth (and UK) property market in the later half of the 20th Century were, firstly, the mass building of Council Housing in the 1950’s and 60’s. Secondly, for the Tory’s to sell most of those Council Houses off in the 1980’s and finally 15% interest rates in the early 1990’s which resulted in many houses being repossessed. It was these major factors that underpinned the housing crisis we have today in Tamworth.

To start with, in 1995 the USA relaxed its lending rules by rewriting the Community Reinvestment Act. This Act saw a relaxation on the Bank’s lending criteria’s as there was pressure on these banks to lend on mortgages in low wage neighbourhoods, as the viewpoint in the USA was that anyone (even someone on the minimum wage) any working class person should be able to buy a home.  Unsurprisingly, the UK followed suit in the early 2000’s, as Banks and Building Society’s relaxed their lending criteria and brought to the market 100% mortgages, even Northern Rock started lending every man and his dog 125% mortgages.

So when we roll the clock forward to today, and we can observe those very same footloose banks from the early/mid 2000’s (that lent 125% with a just note from your Mum and a couple of breakfast cereal tokens), ironically reciting the Bank of England backed hymn-sheet of responsible-lending. On every first time buyer mortgage application, they are now looking at every line on the 20-something’s banks statements, asking if they are spending too much on socialising and holidays … no wonder these Millennials are afraid to ask for a mortgage (as more often than not after all that – the answer is negative).

Conversely, you have unregulated Buy To Let mortgages. As long as you have a 25% deposit, have a pulse, pass a few very basic yardsticks and have a reasonable job, the banks will literally throw money at you … I mean Virgin Money are offering 2.99% fixed for 3 years – so cheap!

So, in Part Two next week, I will continue this emotive article and show you some very interesting findings on why young people aren’t buying property anymore (and it’s not what you think!).

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.

Blog, http://www.Tamworthpropertyblog.co.uk

Twitter, https://twitter.com/hallandthompson

LinkedIn, https://uk.linkedin.com/in/lorrainethompson2

Website, http://www.hallandthompson.co.uk/

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

 

 

 

Ask Lorraine – How much notice do I need to give my tenants?

🙋  Landlord’s Question: 

”Dear Lorraine,

 I have a property in Tamworth that I need to sell, the tenants have been living there 4 years. How much time to leave the property do I need to give my tenants? They have been good tenants and I don’t want to upset them”.
 
Lorraine’s Answer

First things first have your tenancy agreement to hand, assuming that the contract is a periodic (rolling) contract then 2 months notice.

My advice, if you are unsure of how to serve the notice  correctly yourself then I would personally pay a professional to serve this on your behalf.

Before serving notice, ensure that all  your ducks are in a row i.e annual gas safety inspection carried out and tenant has a copy, deposit has been dealt with correctly.  Getting it right at the outset is so much easier than half way down the line having to start all over again. I’d be gutted if I had a sale going through and was advised that my notice was void, I can’t imagine the buyer would hang around much longer.

If serving yourself, post a copy retaining  proof of postage from 2 or 3 different post offices, allowing for the correct number of days.  or hand deliver the notice yourself, taking a friend or relative with you who can video or take a photo as proof of postage through the door.

I would be honest and upfront with your tenant, upsetting them may cause problems with you. You need the  cooperation of your tenants with regards to   viewings while they are still living there. So keeping the tenants on continued friendly terms is a must.

I hope all goes well in the sale of your Tamworth property.

Until next week.

http://www.Tamworthpropertyblog.co.uk

http://www.hallandthompson.co.uk

https://www.facebook.com/hallandthompsonestateagents

 

Are The Mobile Homes In Amington A Good Investment? Amington, Tamworth.

More and more recently I’ve been spotting mobile houses pop up for sale on Amington Park, Tamworth. When I mention them to landlords, family and friends many people have a pre-conceived idea of what a mobile home is and these unfortunate homes are often stigmatised as being a little bit cheap and trashy. After reading this, hopefully you’ll be able to change your mind if you’re in that camp!

A modern mobile home is an ideal, low cost, low maintenance home, usually for the elderly (which we’re always hearing Britain has a growing number of!) a fantastic summer Holiday home to either rent or use yourself if you’re not from the area, so when they come up for sale in Tamworth I get rather excited thinking about the potential they come with!

Searching around the internet, you can find these low cost homes for as little as £67,500 for a two bed property, with a lovely garden and plenty of space to breathe in and going by the current cost of an average two bedroom mid terrace in the area costing almost £30,000 more, you’re in for a big saving.

But the important question is… Is there a market for this type of property?

In short, yes and no. They do make great holiday homes – Tamworth and the surrounding areas have some fantastic summer attractions, such as Twycross Zoo, Drayton Manor and a generous handful of historic sites such as Tamworth Castle and Lichfield Cathedral, that would make this property more than attractive as a holiday let in the summer to Autumn months but that would leave you with an empty property for half a year, however holiday homes do come with a premium on their rent!

But what about if you wanted to rent to a tenant?

There is a market for low cost, affordable homes in the area and as I’ve discussed – this property I’ve featured would make an exceptionally good let to not only the more mature person  but to those who may be in a lower income threshold. These houses are far cheaper to rent than a bungalow and do not offer the mobility issues that a house may present. If you rented this particular property at just £350 per month, you would still stand to gain a healthy return of almost 7%. The only downside with this type of home is that the service charges may be high!

But it’s really all down to personal preference, personally I think these are great as they are a versatile home and these ones in Amington are especially beautiful. So why not pop down to the area one Sunday afternoon and have a look at a few?

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk
Don’t forget to visit the links below to view back dated deals and Tamworth Property www.tamworthpropertyblog.co.uk