Green Lane, Old Sarum – £192,950

 

Situated i

Situated within the increasingly popular area of Old Sarum is this two bedroom property advertised with Oliver Chandler.

Accommodation is well presented and briefly comprises Lounge/Diner, Kitchen, two Bedrooms and Shower Room.

This property would make a fantastic first buy or investment purchase. I would estimate a rental value of between £750pcm and £795pcm, giving you between 4.6% and 4.9%

 

Contact Oliver Chandler for your viewing. http://www.rightmove.co.uk/property-for-sale/property-65826121.html


Nearly Three Babies Born for Every New Home Built in the Past Five Years in Wiltshire

Nearly 3.1 babies have been born for every new home that has been built in Wiltshire since 2012, deepening the Salisbury housing shortage.

This discovery is an important foundation for my concerns about the future of the Salisbury property market – when you consider the battle that todays twenty and thirty somethings face in order to buy their first home and get on the Salisbury property ladder. This is particularly ironic as these Salisbury youngsters’ are being born in an age when the number of new babies born to new homes was far lower.

This will mean the babies being born now, who will become the next generation’s first-time buyers will come up against even bigger competition from a greater number of their peers unless we move to long term fixes to the housing market, instead of the short term fixes that successive Governments have done since the 1980’s.

Looking at the most up to date data for the area covered by Wiltshire Council, the numbers of properties-built versus the number of babies born together with the corresponding ratio of the two metrics …

It can be seen that in 2016, 2.55 babies had been born in Wiltshire for every home that had been built in the five years to the end of 2016 (the most up to date data). Interestingly, that ratio nationally was 2.9 babies to every home built in the ‘50s and 2.4 in the ‘70s. I have seen the unaudited 2017 statistics and the picture isn’t any better! (I will share those when they are released later in the year).

Our children, and their children, will be placed in an unprecedented and unbelievably difficult position when wanting to buy their first home unless decisive action is taken. You see it doesn’t help that with life expectancy growing year on year, this too is also placing excessive pressure on homes to live in availability, with normal population growth nationally (the number of babies born less the number of people passing away) accumulative by two people for every one home that was built since the start of this decade.

Owning one’s home is a measure many Brits to aspire to. The only long-term measure that will help is the building of more new homes on a scale not seen since the 50’s and 60’s, which means we would need to aim to at least double the number of homes we build annually.

In the meantime, what does this mean for Salisbury landlords and homeowners? Well the demand for rental properties in Salisbury in the short term will remain high and until the rate of building grows substantially, this means rents will remain strong and correspondingly, property values will remain robust.

 


£145k 2 Bed BTL Flat The Brambles

Great investment – just buy it. At the asking price this is a 5.4% yield. Ex-local authority flats have minimal service charges and peanut ground rents. Oliver Chandler await your call on 01722 688080 

http://www.rightmove.co.uk/property-for-sale/property-65693683.html


Boscombe Heights, Amesbury – £150,000

Offered for sale with Simon Colligan is this fantastic two bedroom flat situated in the increasingly popular town of Amesbury. We have rented a number of properties within this block, and all have proved popular with those working at Boscombe down and the surrounding area.

Accomodation briefly comprises Living Room, Dining Room, two Bedrooms and Bathroom. The block also benefits from off-road parking and the amenities of Amesbury within close proximity.

This particular flat was rented in 2016 at a figure of £725pcm, which would provide you with a fantastic yield of 5.8%. I would estimate a rental value of £750pcm in the current market, giving you a yield of 6%.

Give Simon Colligan a ring to book your viewing! http://www.rightmove.co.uk/property-for-sale/property-73637315.html

 


How Affordable is Property for Average Working Families in Salisbury?

The simple fact is we are not building enough properties. If the supply of new properties is limited and demand continues to soar with heightened divorce rates, i.e. one household becoming two, people living longer and continued immigration, this means the values of those existing properties continues to remain high and out of reach for a lot of people, especially the blue collar working families of Salisbury.

Looking at some recent statistics released by the Government, the ratio of the lower quartile house prices to lower quartile gross annual salaries in Wiltshire Council has hit 9.75 to 1.

What does that mean exactly and why does it matter to Salisbury landlords and homeowners?

If we ordered every property in the Wiltshire Council area by the value of those properties, the average value of the lower quartile properties (i.e. lowest 25%) would be £194,995. If we then did the same, and ordered everyone’s salary in the same council area, the average of the lowest quartile (lowest 25%), the average salary of the lowest 25% is £19,998 pa, thus dividing one with the other, we get the ratio of 9.75 to 1.

Assuming there is one wage earner in the house, the chances of a Salisbury working family being able to afford to buy their own home, when it’s just under ten times their annual salary, is very slim indeed. The existing affordability crisis of people wanting to buy their own home is the unavoidable outcome of the decade on decade failure to build enough homes to keep up with demand. Nevertheless, improving affordability is not a case of just constructing more homes. Wiltshire Council needs to ensure more properties are not only built, but built in the right locations and of the right type and at the right price to ensure the needs of these lower income working families are met, because at the moment, they presently have few options apart from the private rental sector.

Looking at the historic nature of the ratio, it can clearly be seen in the graph below that this has been an issue since the mid 2000’s.  Previous figures from the late 90’s to mid 2000’s (Salisbury District Council) were significantly lower.

However, if one looks at the historic data, those on the bottom rung of the ladder (those in the lower quartile of wage earners) used to be housed by the local authority instead of buying. However, the vast majority of council houses were sold off in the 1980’s, meaning there are much fewer council houses today to house this generation.

Many of the lower quartile working class families were given a lifeline to buy their own homes in middle 2000’s, with 100% mortgages, but the with the credit crunch in 2009, that rug (of 100% mortgages) was rudely pulled from under their feet. You see it is cheaper to buy than rent … it’s the finding of the 5% deposit that is the challenging issue for these Salisbury working class families. So unless the Government allow 100% mortgages back, the fact is, demand for rental properties will outstrip supply.

In the long term, to alleviate that, I would suggest the Salisbury community hold their local politicians at Wiltshire Council to account for the actions they could take to ensure the affordability of housing and the extent to which they work with private developers and housing associations and aggressively use the planning tools at their disposal to safeguard the local community getting the new households we need. Wiltshire Council could make certain parcels of residential building land for private rented development only, eliminating the opportunity of the land being bought to develop large executive homes, which do not solve the current problem.

Yet in the short term, all this means is demand for rental properties will continue to grow, keeping Salisbury house prices high and Salisbury rents high.


Cracking 2 bed Sidney Street BTL Salisbury £175k

What I like about this place is the location and price. Ok it needs a bit of work circa £20k but for £195k you are getting a great BTL investment. Yield will be upwards of 4.8%. These 2 beds rent from around £775 pcm and are normally around £210k upwards to buy – last 2 bed on Sidney Street sold for £207k but the ceiling is £225k. Possibly a bargain then…..Call Wooley Wallis and make yourself a booking.

http://www.rightmove.co.uk/property-for-sale/property-73348298.html


Middleton Road, Salisbury – £119,950

This one bedroom flat, situated on Middleton Road, is incredibly well priced at £119,950, making it an ideal investment purchase or first time buy.

 

Accommodation briefly comprises Kitchen/Living Room, bedroom and bathroom. Within walking distance of Salisbury City Centre and Mainline Station, and at such a reasonable price, this property is a star buy!

With an estimated rental value of £625pcm, you could be looking to achieve a potential yield of 6.2%. Contact Bassetts to arrange your viewing!

http://www.rightmove.co.uk/property-for-sale/property-53662671.html


Nursery Road, Salisbury – £225,000

Ending the week with this fantastic three bedroom property situated on Nursery Road, just a short walk from Salisbury City Centre and Mainline Station. The property is immaculately presented throughout and would be an ideal investment, or alternatively a well priced first home.

The accomodation comrpises Living Room, Dining Room, Kitchen, downstairs Bathroom and three good sized bedrooms.

 

I would predict a rental value of £895pcm, giving you a fantastic yield of 4.7%. Contact McKillop and Gregory to book your viewing!

 

http://www.rightmove.co.uk/property-for-sale/property-72874148.html


515 Salisbury Landlords Plan to Expand Their Buy To Let Portfolios

A noteworthy number of buy to let landlords in Britain plan to buy more properties over the next year notwithstanding the frustrations, challenges and seismic changes in the private rented sector. According to Aldermore, the specialist Buy To Let lender, their research shows around 41% of portfolio buy to let landlord’s objective is to grow their buy to let portfolio (Portfolio landlords are landlords that own more than one property).

So, I thought, “Are Salisbury landlords feeling the same?” If so, if these numbers were applied to the Salisbury private rental market, what sort effect would it have on the Salisbury property market as whole?

Talking to the landlords I deal with, most are feeling quite optimistic about the future of the Salisbury rental market and the prospect it presents notwithstanding the doom and gloom prophecies that the property market will shrink. Many of those landlords who are looking to enlarge their portfolio are doing so because they still see the Salisbury rental market as a decent investment opportunity.

With top of the range Bank and Building Society Savings Accounts only reaching 1.5% a year, the rollercoaster ride of Crypto currency and the yo-yoing of the Stock Market, the simple fact is, with rental yields in Salisbury far outstripping current savings rates, the short term prospect of a minor drop in property prices isn’t putting off Salisbury landlords.

The art to buying a Salisbury buy to let investment is to buy the profit on the purchase price, not the anticipation of the future sale price.

No matter what the historical economy has thrown at us, with the global meltdown in 2008/9, dotcom crash of 2000, ERM in 1992, the three day week, oil crisis and hyperinflation in the 1970’s (the list goes on) … the housing market has always bounced back stronger in the long term. That’s the point … long term. Investing in buy to let is a long-term strategy. The simple fact is, over the long term with the increasing demand for rental properties, predominantly among Millennials as many cannot afford to get on the property ladder, and with councils not building enough properties of any kind, many youngsters are having to resort the private rental market for their accommodation needs.

So, what of the numbers involved in Salisbury?

There are 577 landlords that own just one buy to let (BTL) property in Salisbury and 1,257 Salisbury landlords, who are portfolio landlords. Between those 1,257 Salisbury portfolio BTL landlords, they own a total of 2,638 Salisbury BTL properties and they can be split down into the size of landlord portfolio in the graph below….

If I apply the Aldermore figures that means 515 Salisbury landlords have plans to expand their BTL portfolio in the coming year or so.

However, the Aldermore Research also showed that 8% of private landlords intended to reduce the number of properties they own. They put this down to continuing Government intervention in the housing market (as many landlords mentioned too many limitations and higher taxation) while some believed that tenants are excessively protected to the disadvantage of the landlord.

I would say there is no repudiating that the buy to let market has taken a bit of a beating, thanks to a plethora of Government regulation, new mortgage underwriting rules in 2014 and George Osborne’s tax changes. Yet there still remains an overall consciousness of optimism among the vast majority of Salisbury buy to let landlords. Despite these latest changes, many landlords still view buy to let as a good investment, as long as you buy right and expand your portfolio taking into account the second rule of buy to let … assess your position on the ‘buy to let seesaw’ of capital growth and yield.

If you want to buy right and assess your own portfolio on the yield/capital growth seesaw … drop me a note. I don’t bite and the opinion I give, whether you are landlord of mine or not as the case may be, is given freely, without obligation or cost. The choice is yours. Thank you for reading this article.