2,681 Spelthorne Homes bought by private landlords in the last 20 years - Is this the end for first time buyers in Staines?

Out walking last weekend in Lammas Park I bumped into a landlord I had previously met at a business networking event in Staines a few weeks ago.  We got chatting about the property market and what the future holds in Staines.

 

I would now like to share that conversation with you, my Staines property blog reading friends.

 People are always going to need a roof over their heads – it’s a necessity for every single person. The 22 to 30 year olds of the town have a choice as to what type of roof they have ... they rent from the Council, they can rent from a private landlord or finally they can get a mortgage and buy one. In the 1970’s/80’s and 90’s, the expected thing was to save like mad for two years for the deposit (going without luxuries) whilst living at home or renting a cheap two up two down, then buy your first house. However, more recently fewer Staines youngsters have been unable to buy, choosing to rent instead – mainly from private landlords (as Councils have been selling off council housing on the Right to Buy Schemes). The numbers are truly staggering ... and I want to share them with you.

Roll the clock back 20 years and Staines was a very different place. There were 37,655 households in Spelthorne and 29,065 of those were owner occupied. Move to the present, and with all the building in the town, the total number of households has increased by 4.93% to 39,512 and quite surprisingly (to me at least), the number of owner-occupiers has decreased to 28,671 (although as a proportion, it is only 72.5% compared to 77.1% twenty years ago).

 

 

 

 However, it’s the rented sector that is truly fascinating … twenty years ago, only 2,323 properties were privately rented in Spelthorne ... and now it’s 5,004 -  a rise of 2,681, more than double.

 

 

 The twentysomethings of Staines housing difficulties haven’t been helped by the local authority selling off council housing, with the number of council houses dropping from 3,653 to 636 over the same twenty-year period. Demand for decent rented property remains high, as Cameron’s much vaunted house building programme is years away and has decades of under investment to catch up on before it starts to affect demand. Even with the Buy to Let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing the people of Staines and those who educate themselves and treat it as a business will survive and prosper.

 

 

 

The best way Staines landlords can protect their income from property (and mitigate the effects of the tax rises) is to keep the homes they let out in Grade A condition. I have found, especially over the last three or four years, Staines tenants have ever growing demands from their rental property, but many are prepared to pay ‘top dollar‘ for houses and apartments that meet their high expectations. You must not forget, letting property in Staines (in fact anywhere) is a business, so all private landlords should also seek the advice, opinion and commentary of property professionals.

Just as I was about to leave with the rest of the family, he asked ‘What of the news of Stamp Duty changes for Landlords coming in April?’ My thoughts are that, with such low supply (i.e. numbers of property for sale), and high demand it is hard to imagine Staines property values will see much impact.   But I predict, ever so slightly, the proportion of owner occupiers should increase slightly compared to buy to let landlords in the coming decade as the housing market rebalances itself slightly.

Staines Property Prices – How do They Compare to the 2007 Boom?

Many landlords have been chatting to me recently about stories in the press and voicing their concerns about booming house prices and whether we are heading for another “property bubble”?

If you recall, in a previous article, I mentioned that property prices had dropped quite considerably in Staines after the property crash but, since 2009 they have been growing.  I took the time last week to look at every property sale in Staines in the last few months (and there were a lot sold!) and then looked to see if any of the same properties had also sold in 2007.  There were plenty such properties in Staines and the numbers suggest that property values are now 17% higher than they were at the 2007 peak.  

So does that mean that Staines property prices are too expensive, especially when we are so far over the peak 2007 prices?

Since 2007, inflation has risen by around 19%.  The average value of a property in Staines in late 2007 was £309,000.  Today, we know that figure is 17% more at £361,600 (17% higher).  However, during that time we have had 19% inflation, so if property values had risen by inflation, the average Staines property would be £367,700 (£309,000 + 19% inflation equals £367,100) . Therefore, property values are actually 2% lower in real terms than they were in 2007 (19% inflation – 17% capital growth = 2% lower).

Most people think inflation is a bad thing eating away at the real value of your savings.  It can however be advantageous to property investors.  My answer to landlords is to get the best advice and opinion you can.  Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring when price yields do start to rise at the levels that they were in the early part of 2014, you are in pole position. 

If you are a landlord in Staines and want to pick my brains on any aspect of the local property market, or need an opinion on what (or not) to buy, send us an email to trevor.cook@martinco.com or joy.cook@martinco.com or pop into our office on the High Street in Staines (We don’t bite....honest!!!!).

Whitley Close, Stanwell - Studio Buy To Let deal - 6.7% yield

Sherwoods have just put this studio on the market for £125,000.

These easily let for £700 per month (sometimes more)

Decent 6.7% yield

http://www.zoopla.co.uk/for-sale/details/35200403

Viola Avenue Outperforms the Stanwell Property Market by 64%

An interesting discussion with a local landlord who lives in Stanwell - we chatted about his buy to let property in Viola Avenue and how that particular property market was so different from properties in the rest of Stanwell where he lives.

We spoke about the two property markets, as it was a good place to start before moving on to consider the whole of Stanwell and Staines.  I did make comparisons between Stanwell and Viola Avenue and was surprised to find that the property market in the Viola Avenue area had outperformed the Stanwell property market by 64%!

The average price of a two bedroom town house on Viola Avenue is £231,800.  When you consider that the rents that are achieved here are on average £1,150 per month, this gives us a yield of 5.95% per year – so is the Viola Avenue area the best investment?  Well, in Stanwell, where the average value of a four bedroom detached house is £502,800 and the average rent for such a property is £1,513 per month, this gives a much lower yield of 3.61%.  This makes the yield/return in the Viola Avenue area proportionally 64% greater than property in Stanwell, so surely Viola Avenue is the best investment isn’t it?

However, this is a classic example of annual yield/return not being the only factor when choosing an investment property.  You should also consider how much the value of the property may go up in the long –term.  In the last ten years, property values have only risen on average by 61.5% in the Viola Avenue area, which is still very impressive considering we had the 2008 property crash.  However, average property values in Stanwell over the same ten year period have risen by approximately 89.3%.

So, if you are investing in the Staines and Stanwell property market, do you want capital value or do you want yield or a bit of both?  If you are landlord with a number of properties or someone who is thinking of becoming a buy to let landlord for the first time, please feel free to pop your head through the door of our offices on the High Street in Staines or email us on joy.cook@martinco.com or trevor.cook@martinco.com.

Stanwell - Buy To let deal of the week

Rule One of Buy to let .. you aren't going to live in it!

With plain looks, this 3 bed town house will let well, sell well, offer decent yields and decent (but not electric) capital growth.

This weeks pick of the bunch of buy to let deals in the Greater Staines area.

On the market with The Frost Partnership for £279,950 .. don't hang around - wont be on the market long!

http://www.zoopla.co.uk/for-sale/details/35147179

Staines....Good Time to Buy a Property??

Following last week’s article, I had an interesting chat with a chap who lives in the Thames Club area of Staines.  He popped into our offices on the High Street whilst his better half was doing some shopping.  He is thinking of buying his first buy to let property and wanted my opinion on the state of the Staines property market and whether it was a good time to invest.

He was however particularly worried that with all the headlines of a booming housing market, there wouldn’t be enough demand from tenants.  One of the best pieces of advice I can give to those looking to invest in property is a simple trick of the trade.  You can judge the affordability of an area’s property market (and thus how much demand there may be) by simply finding the ratio of the average property price to average salary – the lower the ratio, the more affordable the property is.

When we put this to the test, we found that Staines currently has an average property value of £361,600.  The average salary of someone living in Staines is £34,442. This is a ratio of 10.49 to 1 (not bad when you consider the UK national average is 9.5 to 1).  Most lenders will only lend up to four and a half times income, so, to buy an average property in Staines, a first time buyer needs to be on a salary in the early £80,000’s. Even then, they would need to raise the 5% deposit which, when you take into buying fees, would be in the order of £20,100. Tenant’s inability to raise that sort of money for the deposit is driving demand for rental property in Staines.

If you would like some advice about buying to let, be you a landlord with an existing portfolio or someone thinking of investing in the rental market for the first time, please pop in and see us at our office on the High Street in Staines or, email us on joy.cook@martinco.com or trevor.cook@martinco.com.

Laleham 3 bed town house - Sub £300k - BTL deal of the week

SJ Smiths Estate Agents have just put on to the market this modern 3 bed town house for £300,000. Now let's be honest, it isn't the prettiest property from the outside, but these are good sized rooms, the properties sell well and let well. Decent Yields and properties in this street have risen in value by 257% in the last 19 years ..

Not bad inside (see the internals via the Zoopla link) .. she wont be on the market long!

http://www.zoopla.co.uk/for-sale/details/35128737

Rollercoaster Property Prices in Staines and Stanwell Village

 Last week a landlord who lives in Stanwell Village popped into our offices on the High Street in Staines whilst his wife was having her hair cut at a salon just round the corner from us.  He wanted to discuss what exactly is happening in the Stanwell and Staines property market, as our article in the Staines Property Blog in the Summer indicated property values had been rising by £394 per week in Staines, £360 in Ashford and £225 per week in Stanwell.  In that article, we indicated that these property price increases were over the last 12 months (Summer 2013 to Summer 2014) and we went on to say that in the Spring of 2014 the property market was showing superb growth.

I was able to let him know that I had carried out some more detailed research over the past few weeks which produced some very interesting statistics for the home owners and buy to let landlords alike of both Staines and Stanwell.  In the second quarter (April to June) of 2014, average property values in Staines rose by £21,171 or £1,764 per week.  However, in quarter three 2014 (July to September) average property values had tempered and the average Staines property had only risen by £541 per week.  This has been mirrored in Stanwell too as average property values rose by £20,461 or £1,705 per week in quarter two 2014 and tempered to £512 per week in quarter three. 

Talking with other agents in Staines, this slow down was not entirely unexpected, giving mounting evidence of a moderation in activity over the last few months we found mortgage approvals dropped by approximately a fifth between January and May 2014 and there has also been some softening in forward looking indicators, such as new buyer enquiries.  On the other side of the coin, with the labour market strengthening, landlords are looking for a home for their savings, mortgage rates are expected to remain low and with consumer confidence rising, activity is likely to recover in the months ahead. 

It all comes down to doing your homework, asking questions of the agent and owners, find out their motivation for selling and see if you can “bag that bargain”.  Trust me they are still out there and in fact on the Staines Property Blog, we will post each week what we consider is the best buy to let investment in Staines and Stanwell, irrespective of which agent the property is on the market with.

Stanwell 4 bed semi ... nice BTL project for the savvy landlord investor

Frost's put this three / four bed extended semi detached house on the market over the weekend for a very reasonable £299,950.

Not bad inside (have a look at the photo's via the Zoopla link below) .. little cracker .. I have a feeling she won't be on the market long

http://www.zoopla.co.uk/for-sale/details/35016076

£220,000 - is this Buy to let heaven in Trevor Court?

Regents have this 2 bed maisonette for sale at £220,000, making it a little baragin for the buy to let investor.

Regents say "Ideally situated for access to London Heathrow Airport and local amenities this two bedroom ground floor maisonette is offered to the market with no onward chain. The property has been completely refurbished throughout including a re-fitted kitchen and bathroom. With two double bedrooms, large living room leading onto an excellent size private rear garden this property would make an ideal investment or first time buy. Further benefits include gas central heating, triple glazed windows and garage in a block. Viewings are highly recommended!"

We say it wont be on the market long. Clean and tidy inside .. have a look at the pics via the link.

http://www.zoopla.co.uk/for-sale/details/34250422#qxqvtFL04jBQxoHP

Do semi-detached properties in Staines make good investments for buy to let?

I was talking to a homeowner recently who lives in Chestnut Grove in Staines who was considering his first buy to let property and was interested in understanding the property market a little more.

As he lived in Chestnut Grove, which for those that don’t know is off the Kingston Road between Mathew Arnold School and the Station, he was comfortable investing in houses in central Staines, so  we started to discuss the market in this area. 

Firstly we found that 587 semi-detached properties have sold in Staines in the last 5 years at an average price of £285,000, so there is clearly a very active market.

 

What about values? Well a two bed semi on Hythe Road recently sold for just under £270,000 having previously changed hands for £109,000 in Feb 1999, a rise of just over 148% in that period. This is certainly a very healthy growth. With excellent capital growth like this we would expect rental yields to be comparatively lower, however a typical two bed semi should rent out at £1,150 per month so over that period the rental yield has consistently been between 5% and 6% and sometimes higher.

 

If you would like to talk to us about your potential investment please come into our office on High Street Staines. We can guide you on what and where to buy.  We don’t charge for our advice, so just drop in for a chat. 

TW18 buy to let deal - hurry!

YourMove in Staines have just put on the amrket this 2 bed modern town house for £269,950

They say, "Situated in a cul de sac and offered to the market with no onward chain is this spacious two double bedroom house. Accommodation includes lounge/diner, conservatory, separate kitchen and upstairs bathroom. Outside there are front and rear gardens, communal parking and the added benefit of a garage en bloc. Located close to the River Thames between Staines and Chertsey town centres."

We say, at this price it wont be on the market long. She will rent for at least £1150 per month, if not a little more .. a yield of 5%+ and properties on Peket Close have risen by an impressive 32% in the last 5 years

Stanwell - 3 bed semi - BTL bargain of the week

Frost's have just put this 3 bed semi on the market for £325,000. 

Frost's say, "Situated in a sought after cul-de-sac in Stanwell village, this rarely available and attractive semi-detached house benefits from a garage and off street parking. The ground floor has been extended to the rear and comprises a large lounge/diner, and a good size l-shape kitchen/breakfast room. Upstairs there are three bedrooms, a bathroom and a separate toilet. Outside the rear garden has a patio area and is mainly laid to lawn with access to the garage and two brick built sheds"

Should rent for between £1500 and £1600 per month depending on condition, giving a yield of least 5.5% anif bought right, knocking on the door of 6%

We say for those landlords who want an easy life, half decent yield and reasonable cpaital growth, this is your property. Wont be on the market for long. Nice inside,  click on the link for photos

http://www.zoopla.co.uk/for-sale/details/34485551#giu8PzTR446FRq1D.97

Apartment in Staines - 6% yield

Isis estate agents have put this apartment for sale.

They say "A ground floor apartment situated in a popular location, within close distance to Staines upon Thames town centre and railway station. The apartment offers; entrance hall with security entry phone and storage, lounge with direct access to a fully fitted kitchen with appliances, double bedroom and a modern bathroom. Outside there are communal gardens and parking."

We say, £180,000 for a one bed apartment which will rent for £900 per month gives a yield of 6% per year. Apaprtment sin the bloack have exerienced capital growth of 32% to 34% in the last ten years .. not a bad combination.

We dont think it will be on the market that long. Not bad in side, click on the link to see the pics

http://www.zoopla.co.uk/for-sale/details/34443302#OGdapsj86uQfuLKx.97

Staines has itchy feet, 25% more of the households move than in Windsor

..... and that can only be good for buy to let landlords

An interesting indicator of an area’s property market and one which is commonly overlooked is the amount of times properties change hands.

There are 11,679 properties in Staines and 1,783 have changed hands in the last 5 years.  Our neighbours in Windsor may have almost double the number of properties with a total of 20,510 but of those only 2,586 households moved during the last 5 years.  That works out to 12% of Windsor’s property market changing hands.  In Staines just over 15% of the total market moved, meaning that you are 25% more likely to move in Staines than Windsor.

It is also interesting to compare and contrast Stanwell with both Windsor and Staines – more people are staying put there too.  With a total property number of 7,032,  only 880 have changed hands in the last five years.  This works out again to about 12% of the total property market moving over the last five years. 

It just shows there a million different ways of looking at a property investment and an area’s property market before making a decision to buy, be it for yourself, or as a buy to let investment.

If you would like to talk to us about buying property, particularly buy to let, please feel free to drop into our office on the High Street in Staines for a chat.