Winchester Street, Salisbury – £165,000

Attention Investors/Property Developers!

This incredibly well priced Grade ll Listed property has been offered to the market with Whites! The property is in need of full renovation throughout and boasts the potential of extension into the attic space subject to planning permission. The current accomodation briefly comprises Living Room, Dining Room, Kitchen, two Bedrooms and family Bathroom.

Should the property remain a two bed, once completed I would recommend a resale value of £245,000 and a rental value of £795pcm. Should the property be converted to a three bed, I would estimate a resale value of £275,000 and a rental value of £900pcm.

Yields would obviously depend on the renovation costs. Give White’s a ring to arrange a viewing!

If you would like our advice on the rental potential of a property, whether it’s your own property, one you are in the process of purchasing, or one you have seen advertised, contact a member of the team!

New Home Building in Salisbury and Wiltshire over the last 10 years

Should you, as a landlord for buy to let or for personal occupation, buy a brand-new home?

Well, let’s start by looking at the numbers …

Over the last 10 years, 9,860 new homes have been built in the Wiltshire area

 That is a lot of bricks and mortar! Roll the clock back twenty years in the Salisbury property market, and there were two distinct camps of property buyers – folks who would only contemplate living in period character properties with their original fireplaces and beams, and those people who preferred the low maintenance of a new home. Old period homes were ridiculed as money pits by new-home aficionados, while new-home owners were accused of buying boring boxes, all vanilla, all the same, homogenous and bland.

However, it’s not as black and white as that anymore – or not as I see it in Salisbury. New homebuilders are now trying to change their cookie-cutter uniform rows of suburban boxes into developments that are as individual as the families that love in them, thus increasing their appeal. Nonetheless, whether you choose a stone cottage, archetypal Victorian semi or terrace, 1970’s/80’s functional home or a untouched new home, whatever home you buy, it can result in supplementary costs that are often not taken into math’s when buying by potential homeowners or buy to let landlords.

So looking at the numbers in greater detail, let’s see what type of new homes people have been buying in Salisbury and the wider local authority area .

I thought the mix of what was built/bought locally over the last 10 years when compared to the national figures was fascinating … it’s interesting (but not surprising) to see a greater proportion of detached homes built locally and fewer flats being built, when compared to the national averages. This is because of the nature of the Salisbury area, its position in the country, the availability of building land, planning restrictions by Wiltshire Council and the price of building land.

So, should you buy a new home (because a lot of people locally have over the last ten years)?

Well if you are considering new, take care when buying one, as often the show home isn’t the actual property you end up buying. It’s like visiting the car showroom and falling in love with the model in the showroom (which is spec’d up to an inch of its life) – only to get the base model when handed the keys. Look out for things like curtain rails, tv aerials (or lack of them), kitchen appliances, carpets and curtains … and outside – make sure you aren’t unwittingly buying a square piece of earth instead of the manicured landscaped gardens.

New homes are a lot more efficient on energy consumption compared to the old drafty, high fuel bill Victorian semis, as their owners can testify. Older properties will have maintenance issues, with 100yo brickwork and roofs that might need replacement and extra insulation, rotten wooden windows and a dodgy central heating boiler (all sounding rather a strain on your bank balance if you weren’t aware). The point I am trying to get across is open your eyes and don’t assume .. ask questions and get a surveyor to make a detailed inspection of the property so you know what you are getting yourself into.

Next, I also wanted to break down the new home stats to each individual year in our local area to see if there was a pattern to when people bought a new home. As you can see, there was a drop in new homes selling after the start of the Credit Crunch (2008) but since then; the general trend has been better! Looking at the much larger second hand housing market in Salisbury over the same 10 years, the coloration between the new homes market and second market has been quite strong – which shows the new home builders don’t make (or break) the Salisbury housing market – just follow it (although with the planned building locally in the next 10/20 years – who knows if that will continue to be the case?).

So, should you buy brand-new or second hand? If price is your sole motivator, then new homes are always CHEAPER when the economy is bad. However, in normal and good housing market conditions, you will pay a ‘new build premium’. The Royal Institute of Chartered Surveyors admits that this can be as high as 10% extra, when compared to a similar second hand property – so be aware of that (it’s like paying extra for a new car and losing a bit (or a lot) of money as soon as you drive off the forecourt). Although, it’s not always about pure pound notes.

Older houses are bigger (more room) yet take more money to heat. Older houses have bigger gardens (to enjoy) – but you will spend more time tending to them. Older houses are in more established areas (with more facilities), whilst everyone is starting afresh on new homes. It all comes down to personal opinion. One final thought though, at least with new homes there is no gazumping or no upward chain to ruin any sale completion dates …

The choice as they say … is yours!


Fisherton Street, Salisbury – £185,000

Perfect for First Time Buyers, Commuters and Investment Purchasers!

Advertised with Carter and May is this fantastic two Bedroom ground floor flat, situated on Fisherton Street, perfect for leaving your car behind and jumping on the train with direct links to London Waterloo.

The accomodation is immaculately presented throughout, with the open plan Living Room/Dining Room/Kitchen perfect for entertaining! The rest of the accomodation briefly comprises two good sized Bedrooms and family Bathroom. The property also benefits from a communal courtyard Garden and underground parking.

I would estimate a rental value of £800pcm, giving you a fantastic yield of 5.1%!

Give Carter & May a call to arrange your viewing.


Dews Road, Salisbury – £205,000

REDUCED! Advertised with Carter & May is this three bedroom property situated on Dews Road, just a stones throw from Salisbury Mainline Station, and a short walk to the City Centre.

The accomodation, which would benefit from updating throughout, briefly comprises Living Room, Dining Room, Kitchen, two double Bedrooms, single Bedroom and family Bathroom.

The property further benefits from a rear courtyard Garden, and is advertised with no forward chain. This property would make an ideal first time buy or investment purchase, with an estimated rental value of around £850pcm – £875pcm, giving you a fantsatic yield of between 4.9% and 5.1%.

If you would like our advice on the rental potential of a property, whether it’s your own property, one you are in the process of purchasing, or one you have seen advertised, contact a member of the team! 


Archers Way, Amesbury – £175,000

This modern build situated on Archers Way Amesbury, provides a fantastic BTL opportunity. The immaculately presented accomodation is well proprtioned and briefly comprises Lounge/Dining Room/Kitchen, two Bedrooms and Bathroom. The advertising agent, Bassets, mention that there is some Builders Warranty remaining, meaning few initial maintenance costs, maximising your yield. I would estimate a rental value of £775pcm, giving you a fantastic yield of 5.2%.

Give Bassets a ring to arrange your viewing.



The Salisbury Bank of Mum and Dad Lent £7.43m Last Year

My analysis has shown that up to the end of the last quarter, Salisbury first time buyers purchased 476 Salisbury properties. With wages rising at 2.8%, unemployment at a low rate of 4.2% (down from 4.6% from a year earlier and the joint lowest since 1975), national GDP rising at 1.87% and inflation at 2.3%, tied in with indifferent house price growth (compared to a few years ago), this has given first time buyers a chance to get a foot hold on the Salisbury property market.

Over the last year, the average purchase price of a Salisbury first time buyer property has been £220,300 and the average deposit was £35,689. Furthermore, my calculations show the average Salisbury parents contributed £15,614 of that £35,689 figure.

You see “The Bank of Mum and Dad (Salisbury Branch)” is for countless Salisbury twenty something’s, perceived to be the only way they will ever be able to afford their first home. In fact, Salisbury parents put up a substantial £7.43m in the last 12 months to help their nearest and dearest progeny onto the property ladder. This assistance towards the deposit makes a huge difference, enabling Salisbury youngsters who thought they couldn’t get on the housing ladder more able to do so.

With mortgage rates at all-time lows, few Salisbury twenty something’s would struggle to make mortgage repayments, but it is the requirement of the deposit which is the issue, although as parents (and grandparents) are helping out where they can, it does little to address the real problems of the housing market, whether for people renting or buying their first home.

If you think about it, as a Country we have been fortunate that the older generation who control the biggest share of the nation’s wealth are so plentiful to those following after. We need to remember, though, that this generosity is a sign of the issues of the British housing shortage, not its solution.

But before I leave this article … note I used the word PERCEIVED in a previous paragraph. Yes, the average first time buyer deposit is 16.1%, but that is an average. Did you know 95% mortgages returned to first time buyers in late 2009 and have been available ever since? Also, lenders like Barclays and many local Building Society’s now offer 100% mortgages (i.e. no deposit) at 2.75% fixed for three years.

The perception is you need 15%, 20% even a 25% deposit to be a first-time buyer – you don’t! You don’t need any deposit, but (there is always a but!)…

Over the last decade, many renters have upgraded themselves into homes that they (or any generation before them) could never have ever afforded as a first time buyer in the past. You see the British housing market started to change with the dawn of the new Millennium and I am seeing a slow but steady attitude change when it comes to renting. Those tenants have found the price difference of upgrading from the typical 1970’s TV show Rigsby “Rising Damp” style rental property to plush terraced house or even semi-detached home, with all the mod cons, comparatively inexpensive (when compared to the increase in mortgage payments if they had to make the move as buyers).

Renting isn’t seen as the poor man’s choice, as many young (and increasing older) people are becoming more at ease and comfortable with the flexibility offered by private renting a property rather than jumping ‘lemming like’ into home ownership. Salisbury landlords will continue to see growth in sector, and like Germany, todays renters will become homeowners in 20 years’ time – when they will inherit the wealth of their parent’s home.

Kings Road, Salisbury – £125,000

Offered for sale with Hamptons is this one bedroom flat, situated on the highly desirable Kings Road, just off of Wyndham Road. The accomodation is well proprtioned and briefly comprises Living Room, Kitchen, Bedroom and Bathroom. The property would benefit from full modernisation.

In the current market, you’d be looking to achieve a monthly rental value of £650, giving you a fantatstic yield of 6.2%.

If you would like our advice on the rental potential of a property, whether it’s your own property, one you are in the process of purchasing, or one you have seen advertised, contact a member of the team!

The Beeches, Salisbury – £155,000

Advertised for sale with Whites is this fantastic, well proportioned two Bedroom flat, situated off of Tollgate Road.

Accomodation briefly comprises Lounge, Kitchen, two Bedrooms and Bathroom. I would expect this cracking property to achieve a rental figure of £750pcm, giving you a healthy 5.8% Yield.

Give Whites a call to arrange your viewing

£290,015 – The Typical Profit Each Salisbury Landlord Could Make in The Next 25 Years

I am of the opinion that buy to let investment in Salisbury, in the long-term, will bring substantial returns for landlords, irrespective of latest regulation and tax changes.

Taking a very conservative (with a small ‘c’) view, I believe landlords will see a projected net profit of £492,386 per property over the next 25 years through capital gains and rental. When inflation is taken into account that works out at £290,015 (in today’s money) or around £11,601 per year. The breakdown applies to a basic tax-paying landlord placing a characteristic 25% deposit on a £265,200 terraced/town house property.

Capital gains make up a substantial part of a landlord’s returns. Again, being conservative, I have assumed that Salisbury house prices over the next quarter century (between 2018 and 2043) will rise at half the rate they did between 1993 and 2018 (the preceding 25 years), therefore the example Salisbury property in the previous paragraph would grow in value to £723,320, providing gross capital gains of £458,120.

A typical Salisbury landlord receives, on average, rent of £9,600 per annum per terraced/town house property and so, over a 25-year period, that example property would generate a total rental income of £366,960 (again – very conservatively assuming a compound annual growth rate in the rent of 1.71% per annum).

Nevertheless, there are costs to running a buy to let property (mortgages, void periods, repairs, agents fees etc) .. and over those same 25 years, I have estimated that to be £131,338  .. giving the net profit levels mentioned in the second paragraph.

Now of course I have had to make assumptions to reach these figures, yet I hope you would agree, I have been very unadventurous with my assumptions.

The Salisbury (and UK as a whole) buy to let property market is experiencing a massive sea of change. Regulation and tax changes have altered the dynamic in the property market, diminishing its appeal to inexperienced and amateur landlords, and these new tax changes mean higher tax bills for higher rate tax landlords. Yet, despite these rising costs, there are still healthy returns to be found in Salisbury buy to let investment for knowledgeable and steadfast landlords. Nonetheless, the days of anything making money and idle speculation are long gone.

Buy to let is a long-term business undertaking, necessitating commitment and expertise. Don’t put your head in the sand and think it doesn’t affect you. Salisbury buy to let landlords must be equipped to start business and tax planning, take portfolio management advice to ensure their investments will meet their investment goals, appreciate the risks as well as the rewards, and, most crucially, the obligations they have towards their tenants.

If you are a Salisbury landlord, irrespective of whether you are a client of mine or another agent in Salisbury (or even you do it yourself), feel free to drop me a line or pop into the office for an informal chat on the future direction of the Salisbury rental market and where opportunities may lie.

Additional 1,378 Salisbury Rented Homes Required by 2027

I have been doing some research, looking both at National and Regional reports on the demand and supply of property and people together with future projections on the economy, population and family demographics with some interesting results.  According to the Office of National Statistics, in the last financial year nationally, private renting grew by 74,000 households, whilst the owner occupied dwelling stock increased by 101,000 and social (aka council and housing association) stock increased by 12,000 dwellings.

It was the private rental figures that caught my eye.  With eight or nine years of recovery since the Credit Crunch, economic recovery and continuing low interest rates have done little to setback the mounting need for rented housing.  In fact, with house price inflation pushing upwards much quicker than wage growth, this has meant to make owning one’s home even more out of reach for many Millennials, all at a time when the number of council/social housing has shrunk by just over 2.5% since 2003, making more households move into private renting.

There are 7,321 people living in 3,215 privately rented

properties in Salisbury.

In the next nine years, looking at the future population growth statistics for the Salisbury area and making careful and moderate calculations of what proportion of those extra people due to live in Salisbury will rent as opposed to buy, in the next ten years, 3,138 people (adults and children combined) will require a private rented property to live in.

Therefore, the number of Private Rented homes in Salisbury will need to rise by 1,378 households over the next nine years,

That’s 153 additional Salisbury properties per year that will need to be bought by Salisbury landlords, for the next nine years to meet that demand.

… and remember, I am being conservative (with a small ‘c’) with those calculations, as demand for privately rented homes in Salisbury could still rise more abruptly than I have predicted as I would ask if Theresa May’s policies of building 400,000 affordable homes (which would syphon in this 5-year Parliamentary term is rather optimistic, if not fanciful?

So, one has to ask wonder if it was wise to introduce a buy to let stamp duty surcharge of 3% and the constraint on mortgage tax relief could curtail and hold back the ability of private landlords to expand their portfolios?

Well a lot of landlords are taking on these new hurdles to buy to let and working smarter.  Buying the property at the right price and using an agent to negotiate on your behalf (we do this all the time) … and the 3% stamp duty level isn’t an issue.  Incorporating your property portfolio into a Limited Company is also a way to circumnavigate the issues of mortgage tax relief (although there are other hurdles that need to be navigated on that tack), but just look at the growth of proportion of Buy to Let properties in the Country since the Summer of 2016 … something tells me smart Landlords are seeing these challenges as just that … challenges which can be overcome by working smarter.

I have a steady stream of Salisbury landlords every week asking me my opinion on the future of the Salisbury property market and their individual future strategy and, whether you are a landlord of mine or not, if you ever want to send me an email or pop into my office to chat on how you could navigate these new Buy to Let waters … it will be good to speak to you (because you wouldn’t want other landlords to have an advantage over you – would you?).