Back again on Rampart Road! £240k 4 bed BTL HMO?

I blogged precisely a year ago about this property and its still here! Originally with Connells (for around £300k IIRC) and now with Carter & May (just reduced to £240K) this property just doesn’t seem to sell, but why? Rear garden is small, parking is via residents permit but location is pretty good! Just outside the ringroad, great for the town centre and perfect for an HMO near the college. If you are serious about improving that portfolio give Carter & May a call to arrange a viewing, happy to go with you to give my opinion…..

Carnival House, Salisbury – £170,000

Without a doubt, these properties making cracking investments!

Advertised for Sale with Bassets is yet another of the Jubilee Close flats, situated just off of the Wilton Road, just a 30 minute walk to Salisbury City Centre and Mainline Station. There are also fantastic transport links, with an abundance of local bus stops.

Accomodation comprises Large Living Room with Juliette Balcony, seperate fitted Kitchen, Master Bedroom with En-suite, further double Bedroom along with family Bathroom. The property further benefits from an allocated parking space.

I would estimate a rental value of £750pcm, giving you a potential yield of 5.2% at the current asking price. Don’t forget to take into account Ground Rent, which in this case is £50 per annum.

Give Bassets a call to arrange your viewing!


Salisbury House Prices Outstrip Wage Growth by 16.1% since 2007

I recently read a report by the Yorkshire Building Society that 54% of the country has seen wages (salaries) rise faster than property prices in the last 10 years. The report said that in the Midlands and North, salaries had outperformed property prices since 2007, whilst in other parts of the UK, especially in the South, the opposite has happened and property prices have outperformed salaries quite noticeably.

As regular readers of my blog know, I always like to find out what has actually happened locally in Salisbury. To talk of North and South is not specific enough for me. Therefore, to start, I looked at what has happened to salaries locally since 2007. Looking at the Office of National Statistics (ONS) data for Wiltshire Council, some interesting figures came out…

Salaries in Wiltshire have risen by 5.62% since 2007 (although it’s been a bit of a rollercoaster ride to get there!) – interesting when you compare that with what has happened to salaries regionally (an increase of 18.63%) and nationally, an increase of 17.61%.

Next, I needed to find what had happened to property prices locally over the same time frame of 2007 and today. Net property values in Wiltshire are 21.72% higher than they were in late 2007 (not forgetting they did dip in 2008 and 2009). Therefore…

Property values in the Salisbury area have increased at a higher rate than wages to the tune of 16.1% … meaning, Salisbury is in line with the regional trend

All this is important, as the relationship between salaries and property values is the basis on how affordable property is to first (and second, third etc.) time buyers. It is also vitally relevant for Salisbury landlords as they need to be aware of this when making their buy-to-let plans for the future. If more Salisbury people are buying, then demand for Salisbury rental properties will drop (and vice versa).

As I have discussed in a few articles in my blog recently, this issue of ‘property-affordability’ is a great bellwether to the future direction of the Salisbury property market. Now of course, it isn’t as simple as comparing salaries and property prices, as that measurement disregards issues such as low mortgage rates and the diminishing proportion of disposable income that is spent on mortgage repayments.

On the face of it, the change between 2007 and 2017 in terms of the ‘property-affordability’ hasn’t been that great. However, look back another 10 years to 1997, and that tells a completely different story. Nationally, the affordability of property more than halved between 1997 and today. In 1997, house prices were on average 3.5 times workers’ annual wages, whereas in 2016 workers could typically expect to spend around 7.7 times annual wages on purchasing a home.

The issue of a lack of homeownership has its roots in the 1980’s and 1990’s. It’s quite hard as a tenant to pay your rent and save money for a deposit simultaneously, meaning for many Salisbury people, home ownership isn’t a realistic goal. Earlier in the year, the Tories released proposals to combat the country’s ‘broken’ housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving bad landlords.

This is all great news for Salisbury tenants and decent law-abiding Salisbury landlords (and indirectly owner occupier homeowners). Whatever has happened to salaries or property prices in Salisbury in the last 10 (or 20) years … the demand for decent high-quality rental property keeps growing. If you want a chat about where the Salisbury property market is going – drop me note via email, like many Salisbury landlords are doing.

Kingfisher Drive, Durrington – £130,000

This fantastic one bedroom ground floor Flat, offered to market with no onward chain, would make a cracking buy to let investment opportunity.

Advertised with Simon Colligan is this fantastic one bedroom ground floor flat, situated on the popular Avondown Road estate in Durrington. Accomodation comprises Sitting room, seperate fitted Kitchen, double Bedroom and Bathroom. The property also benefits from a private rear Garden and Garage. I believe that the property would benefit from some general updating throughout, however properties in the area generally prove popular to tenants and we would expect to fill the property quite quickly.

In the current market, i would estimate a potential rental value of £600pcm, giving you a respectable yield of 5.5%. Of course, any ground rent and maintenance charges will effect this.

Give Simon Colligan a call to arrange your viewing.

Lanfranc Close, Old Sarum – £167,500

Offered to market with Whites is this fantastic, well proportioned two Bedroom Flat, situated within a popular Old Sarum Development.

Accomodation comprises open plan Living Room/Dining Room/Kitchen, two double Bedrooms and family Bathroom. This lovely top floor flat benefits from allocated parking space, bike storage and far reaching views of the surrounding Countryside.

We let a similar flat within the same block for a figure of £750pcm, in the current market, i would expect to achieve a similar figure, giving you a potential yield of 5.3%. Of course this will be effected by the Ground Rent, which is currently £200 per annum.

If you would like our honest opinion on the rental potential of a property, be it your own property, one you are purchasing or one you have seen advertised, give the office a call, we would be more than happy to discuss this with you, or alternatively attend any viewings with you.

Moving from a 2 bed Salisbury Property to a 4 bed will cost you £812 pm

Moving to a bigger home is something Salisbury people with growing young families aspire to. Many people in two bedroom homes move to a three-bedroom home and some even make the jump to a four-bed home. Bigger homes, especially three-bed Salisbury homes are much in demand and it can be a costly move.

If you live in Salisbury in a two-bedroom property and wish to move to a four-bedroom house in Salisbury, you would need to spend an additional £205,521 (or £811.81 pm in mortgage payments (based on the UK Bank average standard variable rate)). However, going straight to a four bed from a two-bed home is quite rare as most people jump from a two to three-bedroom home, then later in life, from a three to four-bedroom home.

So, after being asked my thoughts on moving home in Salisbury by a friend recently, please find my analysis of the local property market and then some thoughts. To start with, let us see what the average property price is for a Salisbury property by the number of bedrooms it has.

I then decided to calculate what it would cost to make the jump upmarket from one bedroom to two bedrooms, two to three bedrooms etc, etc, both in actual money and in mortgage payments (using the current standard variable rate of UK Banks of 4.74% – so the mortgage cost could be higher or lower depending on the mortgage taken).

There are some interesting jumps in costs when moving upmarket as a Salisbury buyer. The cost of moving from one to two beds, and two to three beds is relatively reasonable, whilst the jump from three to four beds in Salisbury is quite high and therefore financially prohibitive for most families. This helps provide a partial explanation as to why some four-bed properties are currently taking slightly longer to sell.

As an aside, there is a lesson here for all my blog readers. You can quite clearly see why the larger 4 and 5 bed properties don’t offer the best returns for buy to let. Simply put the monthly finance costs and rents achieved don’t match up so well (i.e. a mortgage for a 4 bed home in Salisbury would cost you 39.48% compared to a 3 bed mortgage, but the jump in rent would be a lot less than that). I don’t wish to be dismissive about the solidity of investing in larger properties because it does depend on your circumstances. Four bedroom properties sometimes offer other advantages. Pick up the phone if you want to know what they are in more detail.

A further look at the stock of properties in Salisbury is revealing.

The most active purchasers are 20 and 30 something home-owning parents with growing families. Many look to more modern developments for the perfect balance of access to decent primary schools, commutability and lifestyle. For landlords looking to buy within Salisbury, they face stiff competition from these 20/30 something families, making the three bedroom Salisbury home massively in demand, often attracting spirited offers and selling within weeks of listing. This mix of homebuyers and landlords is a pressure point in the Salisbury property market.  Again, if you are a landlord, call me and I will show you areas with decent returns where you aren’t in so much competition with young Salisbury family homebuyers.

Yet, the cost of an additional bedroom can be too much for some Salisbury buyers. It is quite challenging moving home the first time, but to then find you are priced out on the next move up the ladder can be quite disconcerting, with families often having to move to a different part of town to get the bigger home they need.

Nevertheless, that’s the position many homeowners find themselves in with the cost of the additional bedroom being too much to bear. To those buying their home for the first time, all I suggest is they not only consider the mortgage payments and other costs of their first home, but also do their homework into their next rung up the Salisbury property ladder. Thinking about it now will keep you ahead of the game in the future; as your number of bedrooms, family property needs and lifestyle wants change.

..and Salisbury landlords – well these changes in the way people live also mean there are opportunities to be had in the Salisbury rental market. Many Salisbury landlords are starting to pick my brain on this, so if you don’t want to miss out – drop me a line.

Wellworthy Drive, Harnham – £195,000

This cracking two bedroom flat, situated in a highly desirable area, would make a perfect first time buy or buy to let investment opportunity.

Currently advertised with Goadsby is this fantastic two bedroom Coach House, situated in the increasingly popular Harnham area. Accomodation comprises large open plan Living room/Kitchen, two good sized bedrooms and family Bathroom.The property also benefits from one of the garages situated below the property with internal access.

We believe the current tenant has been in the property since 2009, when they paid a rental figure of £725pcm. In the current market, I would expect to achieve a rental figure of £800pcm, giving you a very respectable yield of around 4.9%

Giev Goadsby a call to arrange your viewing!