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.

The Close Salisbury £POA not a BTL

Feeling flush? This magnificent property in The Close is on the market for an undisclosed sum with agents Hamptons. By clever deduction I can tell you its between £1.7m and £3m and also has 6 bedroom. The last time it sold was in 2009 for £1,037,500 If you’re tempted check out the details here>> http://www.rightmove.co.uk/property-for-sale/property-71711033.html

Extra Funding Is Required for Affordable Homes in Salisbury

In my blog about the Salisbury Property Market I mostly only talk about two of the three main sectors of the local property market, the ‘private rented sector’ and the ‘owner occupier sector’. However, as I often stress when talking to my clients, one cannot forget the third sector, that being the ‘social housing sector’ (or council housing as some people call it).

In previous articles, I have spoken at length about the crisis in supply of property in Salisbury (i.e. not enough property is being built), but in this article I want to talk about the other crisis – that of affordability. It is not just about the pure number of houses being built but also the equilibrium of tenure (ownership vs rented) and therein, the affordability of housing, which needs to be considered carefully for an efficient and effectual housing market.

An efficient and effectual housing market is in everyone’s interests, including Salisbury homeowners and Salisbury landlords, so let me explain ..

An average of only 618 Affordable Homes per year have been built by Wiltshire Council in the last 9 years

The requirement for the provision of subsidised housing has been recognised since Victorian times. Even though private rents have not kept up with inflation since 2005 (meaning tenants are better off) it’s still a fact there are substantial numbers of low-income households in Salisbury devoid of the money to allow them a decent standard of housing.

Usually, property in the social housing sector has had rents set at around half the going market rate and affordable shared home ownership has been the main source of new affordable housing yet, irrespective of the tenure, the local authority is simply not coming up with the numbers required. If the local authority isn’t building or finding these affordable homes, these Salisbury tenants still need housing, and some tenants at the lower end of the market are falling foul of rogue landlords. Not good news for tenants and the vast majority of law abiding and decent Salisbury landlords who are tarnished by the actions of those few rogue landlords, especially as I believe everyone has the right to a safe and decent home.

Be it Tory’s, Labour, SNP, Lib Dems, Greens etc, everyone needs to put party politics aside and start building enough homes and ensure that housing is affordable. Even though 2017 was one of the best years for new home building in the last decade (217,000 home built in 2017) overall new home building has been in decline for many years from the heady days of the early 1970s, when an average of 350,000 new homes were being built a year.  As you can see from the graph, we simply aren’t building enough ‘affordable’ homes in the area.

The blame cannot all be placed at the feet of the local authority as Council budgets nationally, according to Full-Fact, are 26% lower than they have been since 2010.

So, what does this mean for Salisbury homeowners? Well, an undersupply of affordable homes will artificially keep rents and property prices high. That might sound good in the short term, but a large proportion of my Salisbury landlords find their children are also priced out of the housing market. Also, whilst your Salisbury home might be slightly higher in value, due to this lack of supply of homes at the bottom end of the market, as most people move up the market when they do move, the one you want to buy will be priced even higher.

Problems at the lower end of the property market will affect the middle and upper parts. There is no getting away from the fact that the Salisbury housing market is all interlinked .. it’s not called the Property ‘Ladder’ for nothing!

Sarum Close -if the price is right…? Rental Property salisbury £215k

Everyone loves a bargain so why not offer on the slow moving property with Jordans. Its been on the market since September 2017. At £195k it would make a reasonable return of around 4.8%. The last 2 bed that sold down this road (July 2017) made £185k.

http://www.rightmove.co.uk/property-for-sale/property-71825186.html

Previous sales> http://www.rightmove.co.uk/house-prices/SP2/Sarum-Close.html

Salisbury Property Market – Asking Prices Up 2.2% in the Last 12 Months

The average asking price of property in Salisbury increased by 2.2% or £7,187 compared to a year ago, with particularly good demand from landlords and home-movers in the first few months of the year. This takes the current average asking price to £338,504, compared with £331,317 this time last year.

The rise in asking prices is being aggravated by buyers jumping into action looking to benefit from potential stamp duty savings (especially first-time buyers) or beat impending mortgage interest rate rises later in 2018. Of the numerous Salisbury buyers starting their property hunting in the usually active spring market this year, many face paying even more than ever for the property of their dreams, although as I mentioned a few weeks ago, there are more properties for sale in Salisbury compared to 12 months ago.

Looking at the different sectors of the Salisbury property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices now compared to a year ago. Firstly, looking at the Pound note amounts …

Interestingly, when one looks at the percentages, the most upward average asking price pressure is in the detached property type sectors, with both first-time-buyer and second-time-buyer properties at new Salisbury asking price highs.

Now, I must stress this growth in the asking prices of Salisbury property doesn’t mean the value of Salisbury property is going up by the same amount … nothing could be further from the truth.  Only time will tell if the current levels of Salisbury asking prices is a catch-up abnormality after a couple of months of restrained asking price rises in the first few months of 2018, or is it an initial sign that we are in for a better 2018 Salisbury Property market than all of us were expecting at the start of the year?

I believe these asking prices must be viewed with a pinch of salt, as it will be fascinating to see whether Salisbury properties actually sell at these higher asking prices. Just because house sellers (be they owner-occupiers or landlords liquidating their assets) are asking for more money it doesn’t mean buyers will be enthusiastic to part with their hard earned cash. Like my Mum and Dad used to say to me all those years ago, “You can ask … but you might not get”.

Also, Salisbury homeowners and landlords wanting to sell their property need to be aware of progressively strained buyer mortgage affordability and the more those sellers increase asking prices, the more buyers will hit their maximum on the amount they are able borrow on a mortgage.

However, those Salisbury buyers who need a mortgage (be they owner-occupier or landlord), will paradoxically benefit from lower mortgage payments before interest rates rise … maybe another reason for the uplift in the number first time buyers and landlords buying? Only time will tell!