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.

 

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.