Highfield Road, Salisbury – £185,000

Making your blue monday that little bit better with this absolute gem, ideal for a first time buy or investment opportunity!

Currently advertised with Carter & May is this fantastic two bedroom property, situated just a short walk from Salisbury City Centre and its Mainline Station. The accomodation is immaculately presented throughout having been fully refurbished by its current owners, and comprises Living Room, Dining Room, Kitchen, two double Bedrooms and family Bathroom. To the rear of the property is a well proportioned courtyard garden.

I would expect to achieve a rental value of around £825pcm, giving investor purchasors a respectable yield of 5.2%. Alternatively, this is a very reasonably priced two bedroom property within Salisbury City Centre, and therefore would prove to be attractive to first time buyers.

Give Carter & May a call to arrange your viewing. http://www.rightmove.co.uk/property-for-sale/property-52434507.html

Whitebridge Road, Laverstock – £250,000

Something a little different on this dull Tuesday afternoon!

We regularly get enquiries from applicants searching for a bungalow, and for this very reason, they appear to be few and far between. One particular area where they appear occasionally is Laverstock, well known as one of the more desirable areas of Salisbury, perfect for those who don’t want to live in the City Centre, but just a short drive to the amenities that Salisbury has to offer.

This two bedroom bungalow, currently advertised with Middelton & Major, has been on the market since 2nd January 2018. Accomodation comprises entrance Hallway, Living/Dining Room, Kitchen, two Bedrooms and family Bathroom. This property also benefits from a single Garage, off-road Parking and rear Garden. In my opinion, the accomodation appears to be presented in a good condition, although i believe it would benefit from some updating.

Unlike our previous posts, the figures don’t particularly add up from the point of view of an investor, however I believe that this property would be well suited to an owner occupier, potentially looking for a property to retire to.

If this property is of interest to you, be sure to give Middleton & Major a call! I’m sure this property will be snapped up! http://www.rightmove.co.uk/property-for-sale/property-63364129.html

 

 

Salisbury Rents Set to Rise to £805 pm in Next 5 Years

It’s now been a good 12/18 months since annual rental price inflation in Salisbury peaked at 3.4%. Since then we have seen increasingly more humble rent increases. In fact, in certain parts of the Salisbury rental market over the autumn, the rental market saw some slight falls in rents. So, could this be the earliest indication that the trend of high rent increases seen over the last few years, may now be starting to buck that trend?

Well, possibly in the short term, but in the coming few years, it is my opinion Salisbury rents will regain their upward trend and continue to increase as demand for Salisbury rental property will outstrip supply, and this is why.

The only counterbalance to that improved rental growth would be to meaningfully increase rental stock (i.e. the number of rental properties in Salisbury). However, because of the Government’s new taxes on landlords being introduced between 2017 and 2021, that means buy-to-let has (and will) be less attractive in the short term for certain types of landlords (meaning less new properties will be bought to let out).

Interestingly, countless market experts assumed at the start of 2017, that the number of rental properties would in fact drop throughout the year. The assumption being as the new tax rules for landlords started to kick in, landlords looked to kick their tenants out, sell up and invest their capital elsewhere. (Although ironically that would lower supply of rental properties, decreasing the supply, meaning rents would increase again!).

Anecdotal evidence suggests, confirmed by my discussions with fellow property, accountancy and banking professionals in Salisbury, that Salisbury landlords are (instead of selling up on masse), actually either (1) re-mortgaging their Salisbury buy-to-let properties instead or (2) converting their rental portfolios into limited companies to side step the new taxation rules.

The sentiment of many Salisbury landlords is that property has always weathered the many stock market crashes and runs in the last 50 years. There is something inheritably understandable about bricks and mortar – compared to the voodoo magic of the stock market and other exotic investment vehicles like debentures and crypto-currency (e.g. BitCoin).

Remarkably, there is some good news for tenants, as Tory’s recently published the draft Tenants’ Fee Bill, which is designed to prohibit the charging of tenants lettings fees on set up of the tenancy. However, looking at evidence in Scotland, I expect rents to rise to compensate landlords, thus hammering faithful tenants looking for long-term tenancy agreements the hardest. This growth will be on top of any usual organic rent growth.  It really is swings and roundabouts!

So, what does this all mean for landlords and tenants in Salisbury? In my considered opinion,

Rents in Salisbury over the next 5 years will rise by 10%, taking the average rent for a Salisbury property from £732 per month to £805 per month.

To put all that into perspective though, rents in Salisbury over the last 12 years have risen by 23.7%. In fact, that rise won’t be a straight-line growth either, because I have to take into account the national and local Salisbury economy, demand and supply of rental property, interest rates, Brexit and other external factors. Please see the graph for my projections

In the past, making money from Salisbury buy-to-let property was as easy as falling off a log. But with these new tax rules, new rental regulations and the overall changing dynamics of the Salisbury property market, as a Salisbury landlord, you are going to need work smarter and have every piece of information, advice and opinion to hand on the Salisbury, Regional and National property market’s, to enable you to continue to make money.

Salisbury Homeowners Are Only Moving Every 14.5 Years (part 2)

In the credit crunch of 2008/9 the rate of home moving plunged to its lowest level ever. In 2009 the rate at which a typical house would change hands slumped to only once every 21.5 years. The biggest reason being that confidence was low and many homeowners didn’t want to sell their home as Salisbury property prices plunged after the onset of the financial crisis in 2008. However, since 2009, the rate of home moving has increased (see the table and graph below), meaning today:

The average period of time between home moves in
Salisbury is now 14.5 years.

This is an increase of 46.95 per cent between the credit crunch fallout year of 2009 and today, but still it is a 20.16 per cent drop in moves by homeowners, compared to 15 years ago (The Noughties).

So why aren’t Salisbury homeowners moving as much as they did in the Noughties?

The causes of the current state of play are numerous. In last weeks article I talked about how ‘real’ incomes and savings had been dropping. Another issue is the long-term failure in the number of properties being built. Only a few weeks ago in the blog, I was discussing the draconian planning rules meaning house builders struggle to locate building land to actually build on.

Back in the 1960’s and 1970’s, as a country, we were building on average 300,000 and 350,000 households a year. The Barker Review a few years ago said that for the UK to stand still and keep up with housing demand (through immigration, people living longer, a just under 50% increase in the number of households with a single person since the 1980’s and family makeup (i.e. divorce makes one household now two)) we needed to build 240,000 households a year. Over the last few years, we have only been building between 135,000 and 150,000 households a year.

Finally, as the UK Population gets older, there is no getting away from the fact that a maturing population is a less mobile one.

So, what does this mean for Salisbury homeowners and landlords?

Well, if Salisbury people are less inclined to move or find it hard to sell a property or acquire a new one, they are probably less likely to move to an improved job or a more prosperous part of the UK.

Many of the older generation in Salisbury are stuck in property that is simply too big for their needs. The fact is that, in Salisbury and Wiltshire, more than five out of every ten (or 56.2 per cent) owned houses has two or more spare bedrooms; or to be more exact …

74,461 of the 132,546 owned households in the Wiltshire
area have two or more spare bedrooms
.

So, as their children and grandchildren struggle to move up the housing ladder, with those young families bursting at the seams in homes too small for them i.e. overcrowding, we have a severe case of under-occupation with the older generation – grandparents staying put in their bigger homes, with a profusion of spare bedrooms.

Regrettably, I cannot see how the rate of properties being sold will rise any time soon. Many commentators have suggested the Government should give tax breaks to allow the older generation to downsize, yet in a recent White Paper on housing published just weeks before the General Election, there was no reference of any thoughtful and detailed policies to inspire or support them to do so.

This means that there could be an opportunity for Salisbury buy to let landlords to secure larger properties to rent out, as the demand for them will surely grow over the coming years. As for homeowners; well those in the lower and middle Salisbury market will find it a balanced sellers/buyers market, but will find it slightly more a buyers market in the upper price bands.

Interesting times ahead!

Augustine Court, Salisbury – £139,950

Reduced Price! Situated on a desirable development within walking distance of Salisbury City Centre and Mainline Station, this one bedroom top floor flat would offer a fantastic buy to let opportunity.

Advertised with Jordans, this one bedroom flat, situated on the Spire View development offers attractive accomodation throughout comprising open plan Living Room/Kitchen, good sized double Bedroom and Bathroom. The property also benefits from a large storage cupboard and allocated parking space.

I would estimate a monthly rental value of £625pcm, giving you a respectable yield of 5.3%. There is a maintenance charge of £621.41 to be paid half yearly and ground rent of £62.50 to be paid half yearly which of course will effect your yield.

Give Jordans a call to arrange your viewing! http://www.rightmove.co.uk/property-for-sale/property-69719873.html