Welcome to our June 2017 Newsletter
We hope you are enjoying the sunshine! This month means the election, and whichever way it goes housing is always an issue where politicians like to “dabble”. The housing targets have never been hit, not even in the 1930’s building boom, and these days they struggle because the local authorities aren’t building council houses alongside the private sector. It’s good news however that new infrasture does assist with housing demand and there is an article that explains. So, if you know anyone looking sell or rent their property, please think of Martin & Co! 01455 636349 or email Hinckley@martinco.com
01455 636349 or email Hinckley@martinco.com
We’re often asked by investors if now is a good time to buy, and we answer that it’s always a good time depending on how long you wish to keep the property for. Remember an investment property is a long-term plan, but not without it’s costs. It will need to be maintained to a good standard which hopefully the rental income will cover. The equity will grow as the debt is paid down, and the length of ownership remains long term. As you can see from below, if you purchased 20 years ago, then the equity gained is worthwhile. Even with the worst recession since the 1930’s in the middle, the house prices have risen over the longer term. Selling too soon, either through impatience or changes of circumstance could be costly with the benefit from the longer-term strategy lost.
We’re always looking for the latest unique selling point, and we’re introducing “Property File” to all our new Sellers, and eventually Landlords. It’s a web portal powered through our software and Sellers can see the progress of their sales listing with viewing feedback shown alongside real-time Rightmove stats. Landlords will be able to access their property information and download statements, view maintenance updates and feedback on viewings. It’s a good tool and will be rolled out to all our customers during June.
Investment property of the month!
Open to offers, here’s a three-bedroom detached house on sale with us at £220,000. It’s on Sandy Crescent, which is on the popular Hollycroft Estate in Hinckley, and is close to all the amenities and schools. Being located on a corner plot, it has scope to extend and convert into a four-bedroom home. It has a detached garage, off road parking, there’s no chain, and it’s a probate property meaning that there’s potential for modernisation.
If you are interested, just let us know! 01455 636349
Infrastructure investment leads Landlords on road to returns.
Martin & Co has launched its latest Market Intelligence Report for the UK which reveals an average boost of 7.8% to house prices in areas surrounding major road improvements. As part of its national campaign which looks at key trends across the industry, the report provides an in-depth analysis of the buy-to-let and private rental sector, supporting landlords in identifying investment locations across the country with the highest growth potential. Through its dedicated Investor Growth Assessment Tool, which looks at key investment areas based on a set of ten economic and housing market growth drivers, Martin & Co has identified a number of key investment hotspots linked to significant transport programmes – both current and planned. Recently completed projects have seen house prices increase by almost a quarter in some locations, with improvements to J19 of the M1 in Leicestershire resulting in a rise of 22.5% and the Bedale bypass in North Yorkshire seeing property prices grow by 16.2%. The high-profile Crossrail project, due to operate from 2018, is expected to boost house prices along its route by up to 25%, and there are a large number of similar multi-million pound projects in the pipeline over the next few years.
Steve Chadwick of Martin & Co Hinckley, said: “Our analysis has shown a strong correlation between completed major road infrastructure projects and a rise in house prices across the local (and wider surrounding) areas, with the data providing valuable insight to investors on the best opportunities for investment in and around these locations. Quality infrastructure has huge potential to boost demand for homes through bringing remote areas within reach of population centres, reducing commuter times, and relieving congestion, and this is certainly something we’ve identified through our own analysis across all types of improvement scheme. “
Steve added that Government investment in infrastructure across the UK remains high on the agenda, demonstrating a clear opportunity for investors to maximise on their assets in areas pinpointed for development over the next few years.
“The saying goes that the early bird catches the worm, and it’s clear that with some buyers put off purchasing during initial stages of major infrastructure works, buy-to-let investors can certainly reap the rewards of early investment through temporary price reductions – whilst also benefiting from ongoing optimum yields.” Steve concluded.
Despite apprehensions around mortgage tax relief changes, higher stamp duty, and the proposed tenant fee bans, the published report also highlights a strong growth in the private rented sector with tenant demand continuing to outweigh current housing supply. Across the sales market, investor activity has continued to maintain momentum albeit being slightly overshadowed by that of first time buyers. A copy of the full Market Intelligence Report is available via askmartin.martinco.com
We’re doing tremendously well selling houses locally – even if we’re blowing our own trumpet! It’s a tough local market to operate in, with more agency competition per housing count than within most city centres. Needless to say, we have made an impact and our offer of £600 including VAT has improved our presence. Not only has our market share increased, but it’s helped to drive the high cost of selling a home downwards, and also eaten into the growing share of the online agent offering. Our figures are strong and we sell homes at an average of 98.2% of asking price, with our low stock = high customer service attitude continuing to resonate. The sales volumes are still not as high as they were historically, so competition remains fierce, with the sellers benefitting the most.
Landlord Insurance is an important tool for any Landlord against loss of income from events out of their control. They’re not an essential tool, but one that could save you future hassle. We recommend that one policy should encapsulate all of these; Buildings insurance, Limited Contents insurance, Public Liability insurance, Rent Guarantee insurance based on the tenancy and the building (arrears, fire or flood), Legal Expenses cover and Malicious Damage cover (extra to what the normal six-week deposit amount covers).
Email Michael Bradbury from Coversure insurance on michaelbr@coversure.co.uk for details
