There seems to be a renewed confidence in the lettings market as investors are clearly putting money into property once again particularly in Newport and Market Drayton. In the last few weeks I have spoken to a number of clients who have, or are in the process of buying to let again. The idea of investing in bricks and mortar is still a popular one with gross yields of between 5.5% and 6% quite common in our part of the world, all this despite the introduction of the stamp duty surcharge and the gradual removal of mortgage interest tax relief on investment properties. Typically two and three bedroom houses are the most desirable and certainly the most lettable, it is still quite common for five or six lots of tenants to “throw their hat in the ring” for a property and landlords sit on the luxury of choice as to who goes in with the longer term tenant the big priority. With sales going through Barbers we have had great success with selling properties to investors with tenants already in place, as soon as the sale completes the new owner is getting an income on day one, with empty properties we will always endeavour to line up a tenant once the sale exchanges with a view to tenancy commencing as soon after completion as is possible.
I read a recent BBC report that said older people aged 40 and above are twice as likely now to rent a property than ten years ago, I am not sure I agree with the use of the word “older” and over 40 but apparently the number of tenants in this category has nearly doubled in the last ten years. There are all sorts of reasons for this including death, divorce and debt, not necessarily in that order.
As a firm we are letting 50 properties per month and during May 2018 around 40% of the tenants who rented were over 40! We have a high number of younger tenants registered also with 22% of lets in May to people who are moving from family into rented houses, younger couples, typically who consider renting a perfect acceptable lifestyle choice. There also appears to be a number of people selling (8%) and going into rented, presumably putting themselves in a stronger position to purchase further on, not great for the investor landlord who will potentially have an empty house again in six months.
In summary I do see a surge in demand from tenants over the next few years with some experts predicting around six million householders will be renting by 2025!
A few recent lets in and around Newport include a four bedroom house on Boughey Road for £795 p.c.m, a two bedroom barn conversion in Moreton for £950 p.c.m. A two bedroom terraced house on Saxon Drive, off Stafford Road for £650 p.c.m and a three bedroom semi detached house on Greenfields Drive, off Wellington Road for £750 p.c.m. All attracted plenty of interest so if you have an empty property or want advice buying to let then drop me an email at email@example.com or call the office 01952 820239.