Salisbury rents rise by 19.6% since 2005

The Salisbury Property Market is a very interesting animal and has been particularly fascinating over the last 12 years when we consider what has happened to Salisbury rents and house prices.

There’s currently much talk of what will happen to the rental property market following Brexit. To judge that, I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to judge rationale and methodically, the possible ramifications for long-term investors in the Salisbury property market. You see, an important, yet overlooked measure is the performance of rental income vs house prices (i.e. the resultant yields over time). In Salisbury (as for the rest of Great Britain), notwithstanding a slight drop in 2008 and 2009, property rentals have been gradually increasing. Continue reading

Sassoon Close – £229,950

Currently marketed with Connells, this three bedroom semi-detached house would make a cracking low maintenance BTL or equally as fantastic family home! Situated just off of the Wilton Road, on the outskirts of Salisbury City Centre, the property boasts from a downstairs WC, large Living/Dining Room, three good sized Bedrooms as well as a family Bathroom, rear garden and off-road Parking for one car. We recently let a 4 bedroom property just a couple of doors up on first viewing for £1350pcm, I would recommend a rental value of £975pcm for this property, meaning a respectable 5% yield! Alternatively, another fantastic reasonably priced family home. http://www.rightmove.co.uk/property-for-sale/property-65233757.html

 

Are you a sucker for character? Winchester Street – £185,000

This Grade ll Listed split level maisonette situated in a prime location within Salisbury City Centre is currently advertised with Bassets. The accomodation ‘enjoys a wealth of character and period features’ and is incredibly well presented throughout with good sized Reception Room, seperate fitted Kitchen, two double Bedrooms and a further Dressing Room. I would estimate a rental value of £775pcm, meaning at the current asking price, you could expect a yield of 5%. Alternatively, if you’re a sucker for character and are looking for a City Centre Pad on the lower end of the market, this could be the place for you! Give Bassets a ring to book your viewing!

If you would like our honest opinion on the rental potential of this property, one of your own properties or another property you have seen on Rightmove, give a member of the team a call! http://www.rightmove.co.uk/property-for-sale/property-48153540.html

 

Yet another Jubilee Close Flat!!! – £164,995

Yet another Carnival House flat on the market, and without a doubt, these properties making cracking investments!

For sale with Austin & Wyatt is two bedroom apartment within Carnival House, Jubilee Close. Whilst it may be situated a little way out of town, these flats offer extremely well proportioned accomodation for the money as well as offering off-road parking and a regular bus service into the City Centre. We sold a ground floor flat within the same development just last year for a figure of £154,000 which we then let for £725pcm. At £164,995, I would estimate that the rents would now be around £750pcm, bringing in a respectable yield of 5.4%.

http://www.rightmove.co.uk/property-for-sale/property-48054210.html

South Mill Road, Amesbury – £115,000

Situated in this popular area of Amesbury is this one Bedroom ground floor flat, curently advertised with Simon Colligan. The property benefits from a good sized double Bedroom, rear courtyard garden and off-road parking, highly desirable for tenants. The property is currently rented at £565pcm, bringing in a respectable yield of 5.8%. Don’t forget, this income will be effected by the current monthly maintenance of £15.43, but still a strong yield nonetheless. http://www.rightmove.co.uk/property-for-sale/property-47728095.html

 

1 bed Investment flat only £98,000 Yield of 6.4%

This flat is a perfect investment property (I would say that because I’m selling it) but it really is! Marketed at £98,000 with a share of the freehold and a 900+ year lease its a great addition to a portfolio or first time investor. Service and ground rents are also very low, based on current rent the yield would still be over 6.4%. Call us now to arrange a viewing.

http://www.rightmove.co.uk/property-for-sale/property-65829995.html

Salisbury’s housing affordability hits a ratio of 9.29 to 1

A Salisbury homeowner emailed me last week, following my article posted in the Salisbury Property Blog about the change in attitude to renting by the youngsters of Salisbury and how they thought it was too expensive for first time buyers to buy in Salisbury.  There can be no doubt that buy to let landlords have played their part in driving up property values in Salisbury (and the UK) and from that made housing a lot less affordable for the 20 and 30 somethings of Salisbury.

They asked if the Bank of England (BoE) should be tasked to control house price inflation in the same way as the BoE controls inflation.  The BoE has a target for the annual inflation rate of the Consumer Prices Index of 2%, whilst it is also required to support the Government’s economic policy, including its objectives for growth and employment.  So, should BoE be charged with containing buy to let housing market, by possibly changing the rules on the loan-to-value (LTV) ratio’s?

So, let’s look at how affordable Salisbury is?  The best measure of the affordability of housing is the ratio of Salisbury Property Prices to Salisbury Average Wages, (the higher the ratio, the less affordable properties are).   (i.e. looking at the table below, for example in 2014, the average value of a Salisbury property was 8.70 times higher than the average annual wage in Salisbury.)

 

This deterioration in affordability of property in Salisbury over the last couple of years has been one of the reasons why the younger generation is deciding more and more to rent instead of buy their own house.

… but it’s not the only reason.

A quick look on Money Supermarket today found 169 lenders prepared to offer 75% LTV Buy to let Mortgages and none at 85% LTV.  Lenders have self-imposed a high level of entry for buy to let landlords (i.e. putting down at least 25% of the purchase price in cash).  The BoE don’t need to meddle there!  Also, the Tories have certainly done lots to level the playing field in favour of first time buyers.  For nearly a year now, Landlords have had to pay an additional 3% in stamp duty on any buy to let purchase and over the coming four years, tax rules on landlord’s claiming mortgage interest relief will affect their pocket.  Neither, it doesn’t help that the local Authority sold off council houses in the Thatcher years and so for many on low incomes or with little capital, owning a home has simply never been an option (today or in the past).

It’s easy to look at the headlines and blame landlords.  First time buyers have been able to access 95% LTV mortgages since 2010, meaning even today, a first-time buyer could purchase a 2 bed terraced in Salisbury for around £200,000 and only need to find £10,000 deposit.  Yes, a lot of money, but first time buyers need to decide what is important to them.  Either save up for a couple of years to save the deposit and go without two annual foreign holidays, the full Satellite or Cable TV package with Sports and Movies costing three figures a month, the latest mobile phone and out socialising … or not as the case maybe?

I think we as a Country have changed … renting is returning to be the norm.  So my opinion is, landlords have it tough.  Let’s not blame them for the ‘perceived’ woes of the nation … because to be frank … we haven’t always been a country of homeowners.  Roll the clock back to 1964, and nationally, 30% of people rented their home from a private landlord – today – its only 15.3% nationally.

If you are an existing landlord or someone thinking of become a first-time landlord looking for advice and opinion and what (or what not to buy in Salisbury), why not contact me.

Hildon House, East Tytherley – £2,500,000

The Wednesday drag called for something a little different today, like this former coach house in Broughton, Hampshire. This stunning property is ‘set within it’s own parkland within the heart of the Test Valley’ and boasts five to six reception rooms, two to three bedrooms, three bathrooms, outbuildings, swimming pool and is set in approximately 18.92 acres! Despite having few bedrooms, its vast amount of reception rooms and surrounding land as well as it’s immaculate modern interior more than justifies the price tag! This would certainly make a cool pad for those who love to entertain. If you’ve got a spare £2.5 mil and fancy a dip in your own private pool in the glorious British sunshine, give Knight Frank of Winchester a call! http://www.rightmove.co.uk/property-for-sale/property-47890761.html

 

Are you a Cash Buyer? Finnis Road – £140,000

ATTENTION CASH BUYERS!! Fancy a BTL on Finnis Road? This three bedroom property is on the market with Connells of Amesbury at just £140,000. Whilst it is of Reema construction and therefore only available to Cash buyers, the property boasts well proportioned accomodation throughout and also benefits from the opportunity to buy the property with tenants in situ, maximising income from completion. At a potential rental value of £775pcm, you could be looking to achieve a yield of 6.6%! Definitely a cracking property to add to your portfolio! http://www.rightmove.co.uk/property-for-sale/property-47927853.html

 

Wilton Road BTL Gem – £125,000

Purple Bricks are currently advertising this ‘immaculately presented newly converted’ ground floor apartment benefitting from an enclosed rear garden, just a 20 minute walk to Salisbury City Centre and Mainline Station. Althought the accomodation is on the small side, the property boasts modern decor and fixtures and fittings throughout suggesting that maintenance would be limited and making an incredibly attractive rental. I would expect to achieve a rental value of around £575pcm, which means you could be looking at a potential return of 5.5%. http://www.rightmove.co.uk/property-for-sale/property-59079403.html