tag:blogger.com,1999:blog-28745920527023385452024-03-05T10:50:47.844+00:00The Derby Property BlogKeeping you informed about the local property market and telling you the information that you need to know. Residential lettings, investment property recommendations and general property news - you will find it all here to help you make more informed decisions regarding your rental properties!Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.comBlogger76125tag:blogger.com,1999:blog-2874592052702338545.post-60322251101956359882015-07-22T17:32:00.006+01:002015-07-22T17:33:11.788+01:00I HAVE MOVED!I HAVE UPGRADED MY BLOG TO A MUCH MORE INFORMATIVE, USER FRIENDLY VERSION WHICH CAN BE FOUND AT:<br />
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UNFORTUNATELY, YOU WILL HAVE TO RE-REGISTER TO RECEIVE THE BLOG POSTS BY EMAIL - BUT IT WILL BE WORTH IT!<br />
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MANY THANKS<br />
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SimonAnonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com41tag:blogger.com,1999:blog-2874592052702338545.post-3259219090635752602015-07-13T10:49:00.001+01:002015-07-13T10:49:36.080+01:00There's a Drought in the Derby Property Market!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1phgDUkoCUuDgPr3ILzDMzq7m_PlB3a1r2PEDYimpfgcPvfJ6GcZlczyZd4ItedvF1xKZo_V2ukEf6SsGaSB4KM8HTvA-aZBTNjDNeF2mdoqd5uEPCOUyYaes1ha9Ym92JKtDUZ0L3mse/s1600/Drought.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1phgDUkoCUuDgPr3ILzDMzq7m_PlB3a1r2PEDYimpfgcPvfJ6GcZlczyZd4ItedvF1xKZo_V2ukEf6SsGaSB4KM8HTvA-aZBTNjDNeF2mdoqd5uEPCOUyYaes1ha9Ym92JKtDUZ0L3mse/s400/Drought.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Well the dust has settled and
the General Election was something that seems to have happened many months ago;
a bit like the end of the football season!
So, we can get back to a more normal property market, or that is what
the London based ‘Fleet Street’ journalists would lead you to believe. I do find
that their opinion is often tainted by the market ‘down south’ so I get my
local information from much more reliable sources. I have been talking to many
fellow property professionals in Derby; solicitors, conveyancers, mortgage
brokers and, one the best sources of information, the chap who puts all the
estate agent and letting boards up in the area. Each of them told me the same
story - they didn’t see any change in the couple of months that led up to the
Election itself on the 7<sup>th</sup> May.<o:p></o:p></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I am now of the opinion that,
maybe in the upmarket areas of Mayfair and Chelsea, the market went into spasm
with the prospect of a Labour/SNP pact with their Mansion Tax for properties
over £2,000,000, but, in little old Derby and the surrounding villages, there
has only been two properties sold above £2,000,000 mark in the last 7 years so
we had a somewhat different reaction!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In a nutshell, the General
Election didn’t really have any impact on people’s confidence to buy property
in Derby. As I write this article, of 1,687 properties that have come on to the
market in Derby since the 2<sup>nd</sup>
of April, 504 of them have a buyer and are sold subject to contract, that’s
nearly one in three - 29.87% to be
precise.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I actually think that things
are starting to change in the way people in Derby (in fact the whole of the
country as I talk to other agents around the UK) buy and sell property. Back in
the 1970’s, 80’s and 90’s the norm was to buy a terraced house as soon as you
left home and do it up. Meanwhile, property prices had gone up, so you traded
up to a 2 bed semi, then 3 bed semi and repeated to the process, until you
found yourself in large 4 bed detached
house with a large mortgage.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Looking into this a little
deeper like I have said in previous articles Derby people’s attitude to home ownership
itself have changed over the last ten years. The pressure for youngsters to buy
when young has gone as renting, not buying, is considered the norm for 20
something’s. This isn’t just a Derby thing, it’s a national thing, as I have
noticed that people buy property by trading up (or down) because they need to,
not because ‘it’s what people do’. This does means there are a lot less properties
on the market compared to last decade.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
A by-product of less people
moving is less people selling their property. My research shows there are a lot
fewer properties each month selling in Derby compared to last decade. For
example, in February 2015, only 240 properties were sold in Derby sold. Compare
this February 2002, and 423 properties sold and the same month in 2003, 421
properties. I repeated the exercise on
different sets of years, comparing the same month to allow for seasonal
variations, and the results were identical if not greater. So what does this
all mean?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<br />
<div class="MsoNoSpacing" style="text-align: justify;">
Demand for Derby property
isn’t flying away, but with fewer properties for sale, it means property prices
are proving reasonably stable too. Stable, consistent and steady growth of property
values in Derby, year on year, without the massive peaks and troughs we saw in
the late 1980’s and mid/late 2000’s might just be the thing that the Derby
property market needs in the long term.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;" target="_blank"><img border="0" height="142" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8d9zISoOAk4LfzLn89WmyLnoF9lMfj5wBaTDZq7SUqv1SII_PVkajtaiWAaZ-_dEfAEbMHqqMnJ3hq8JZGX70eVpkqFOEkGzbjXyNE5zEN3CK_lG7Ae2AUcyGCzDXaQcCz7ODOF9rjim0/s400/Simon.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com24tag:blogger.com,1999:blog-2874592052702338545.post-22017914435279070832015-07-09T10:45:00.000+01:002015-07-13T10:46:01.220+01:00Why are less and less people moving house in Derby?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoIRtXa1ZsJES9xc1f1muon7Db09ePNA5ibGA06nF7j5nt8AY3C4Ct3Hw8h4Z_wvtiktGOXO6uWVOb2cVHMHDh5L2eSMvp-FRntveUd5L60SrEiJGhMay1jBKsjgh1SPPZ8PXPDw_HbI5r/s1600/Move.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoIRtXa1ZsJES9xc1f1muon7Db09ePNA5ibGA06nF7j5nt8AY3C4Ct3Hw8h4Z_wvtiktGOXO6uWVOb2cVHMHDh5L2eSMvp-FRntveUd5L60SrEiJGhMay1jBKsjgh1SPPZ8PXPDw_HbI5r/s400/Move.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
During my school years, my
parents seemed to move every other year, or it certainly seemed that way! In
reality, looking back at the house moves, we actually moved three times before
I left home. In fact I read on the internet that the average UK person moves 8
times in their life - or every 9 to 10 years. However, whilst my parents kept
the removal van people in business whilst I was at school, from research I have
carried out it shows things have changed considerably in Derby over the last
few decades, and interestingly, the trend is getting worse ... for the removal
van people at any rate!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In Derby, there are 104,777
properties. However, after we remove the 20,289 council houses, 17,504
privately rented houses and 1,213 houses where the occupants live rent free,
that leaves us with 65,771 owned properties, be that 100% outright, with a
mortgage or shared ownership. This means 62.8% of the properties in Derby are
occupied by the owner (the national average is interestingly 64.2%) but the
number of people who have sold and moved house in Derby, over the last 12
months, has only been 4,282. This means on these figures, the homeowners of
Derby are only moving on average every 15.35 years.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
There are a couple of reasons
for this. Firstly, the cost of moving house has risen dramatically over the
last twenty years and, secondly, with many remortgaging their properties in the
mid 2000’s before the price crash of 2008, there is a reluctance or inability
in a small minority of homeowners to finance a home sale/purchase, due to lack
of equity. These are both factors leading to driving fewer moves by existing
homeowners.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, the big effect has
been the change in house price inflation. Back in the 1970’s and 1980’s, house
prices were doubling every 5 to 7 years. Even in Greater London, with its
stratospheric property price increases over the last few years, it has taken 13
years (August 2012 to be exact) for property values to double to today’s
levels.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
This change to a relatively low
inflation Derby property market - Derby property values not rising quickly - is
significant because the long term consequences of sustained low house price
growth is that it eats into mortgage debt more slowly than when property price
inflation is higher. Derby home owners cannot rely on inflation to shrink their
debt in real terms as much as they did in say the 1970’s and 1980’s.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So what does this all mean for
Derby buy to let landlords? Well, for the same reasons existing Derby homeowners
aren’t moving, less ‘twenty something’s’ are buying their first home as well. Derby
youngsters may aspire to own their own home, but without the social pressure
from their peers and parents to buy their first property as soon people reach
their early 20’s, the memory of the 2008 housing crisis and the belief the hard
times either aren't over or the worst is yet to come, current and would-be
homeowners are warming to the idea of renting. I also believe UK society has changed, with the
youngster’s wanting prosperity and happiness; but wanting it all now...
instantly... today... without the sacrifice, work and patience that these
things take. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
As a society, we now expect things instantly, and if it
doesn’t come easy, doesn’t come quick, some youngsters ask if it is really
worth the effort to save for the deposit?
Why go without holidays, the newest iPhone, socialising four times a
week and the fancy satellite package for a couple of years, to save for that 5%
deposit. Why should they if there is no longer a social stigma in renting or
pressure to buy as there was say a generation ago?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Even though, in real terms, property prices are 5% cheaper than they were ten years ago (when adjusted by inflation), 16.7% of Derby properties are privately rented, nearly double it was twenty years ago. As a result, the demand for rental properties continues to grow from tenants, meaning those wishing to invest in the buy to let market, over the long term, might be on to a good thing?</div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;" target="_blank"><img border="0" height="142" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1BngHiGDvqdIWGwmIUvsww5xzz1GqdKmmA1ToxCss-AxDWf8REDuQxzkUf3aa6nawYuThKtoqYVtTCmCHd75P0FSGU1KSZN43Jl8EvV9JloNTblWC3NgbSZzaBxQM5nOWz1npcQWAzLCE/s400/Simon.jpg" width="400" /></a></div>
<div style="text-align: justify;">
<br /></div>
Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com10tag:blogger.com,1999:blog-2874592052702338545.post-69517845282403355482015-06-18T09:56:00.000+01:002015-06-18T09:56:33.663+01:00Derby investment properties – the eternal bedroom question! <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s1600/DPB1.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s400/DPB1.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Last week, a Derby landlord
emailed me, after reading the Derby Property Blog, to ask if he should extend
his terraced house, making an extra bedroom in the loft. He had a builder
friend who owed him a favour, and thought it a good way to achieve
an ‘inexpensive’ extension.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Having more useable space is
generally thought to be consistent with better quality accommodation and
homeowners and tenants are prepared to pay for it. If you added a bedroom
to a two bed terraced to make a three bed terrace, it will add around 10% to
the value of the property. Turn a three
bed terraced into four bed terraced, and approximately 9% will be added to the
value. Looking at semi detached properties, and turn a two into a three
bed and around 12% will be added to the value, whilst making a three bed semi
into four bed will add 9% in value.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, before you rush off
to the planning department there are some important considerations, whether you
are a homeowner or landlord. What would
be the cost of making that extra bedroom? The average value of a terraced house
in Derby is currently £115,800 whilst the average value of a semi detached
house is £145,900, meaning to make money the cost of the extension would need
to be less than £11,001 on the terraced property and £15,319 on the semi
detached house. </div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHE22UvbdaovJt79zBKDL2zzG7bG5qqf3uoeHj51RcAKCzZz4m45JmzuxAxd9f9RXFtesxN-cdU_vkjPlHk3wuPvDS0KcOwouCJABM9wfElIMFu88pCW2sAU_g5NuD3_BNuz1Q3B_g0hyo/s1600/Bedrooms.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHE22UvbdaovJt79zBKDL2zzG7bG5qqf3uoeHj51RcAKCzZz4m45JmzuxAxd9f9RXFtesxN-cdU_vkjPlHk3wuPvDS0KcOwouCJABM9wfElIMFu88pCW2sAU_g5NuD3_BNuz1Q3B_g0hyo/s320/Bedrooms.png" width="320" /></a>Talking to a number of trade’s people in the City, most are
booking up into the New Year. Also, no matter how good a friend he was, I know
of no builders that would charge as little as that! Maybe the builder was just
thinking of a bit pointing work on the chimney!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Well, that got me thinking
about how bedrooms affect rental prices and rentability. Interestingly, you
will see below that whilst bedrooms do have an effect on the rent that can be
achieved and the rentability of the property – the difference does not really warrant
the expense, hassle and trouble of extending.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b>18.8%</b> of the one bed properties on the market to rent in Derby have
a tenant paying an average rent of <b>£411</b>
per month<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b>43.3%</b> of the two bed properties, have a tenant paying an average
rent of <b>£541</b> per month<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b>39.8%</b> of three bed properties costs a tenant an average rent of <b>£571</b> per month<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b>21.5%</b> of the four bed properties have a tenant with an average rent
of <b>£669</b> per month<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Now, if you want to increase the value of your property, be you a Derby landlord or homeowner, there are things that cost a lot less than building extra bedrooms. Spruce up the exterior, decorate all the rooms, install fresh carpets and curtains. For homeowners, a matter of a few hundred pounds will add thousands whilst for landlords, these things can add an extra 10% to the rent that you can achieve.</div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFkWfcki9rVpJnfRB48ofASrZn5-lKrWCfffT1NfcGRRIsesFOEht8aqeJi3B4ghmvHH8h0L2raadyz8MWZIDFriZllDpwMbMD1TgcvyxCxyPFS5kLpbVH5wlTStRSLA9C49y2tudKciqY/s1600/simon+to+let+board.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFkWfcki9rVpJnfRB48ofASrZn5-lKrWCfffT1NfcGRRIsesFOEht8aqeJi3B4ghmvHH8h0L2raadyz8MWZIDFriZllDpwMbMD1TgcvyxCxyPFS5kLpbVH5wlTStRSLA9C49y2tudKciqY/s320/simon+to+let+board.png" width="262" /></a></div>
<div style="text-align: justify;">
If you would like to discuss this topic in more detail or anything related to residential lettings in the Derby area then please don't hesitate to contact me on:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: center;">
<span style="font-size: large;">07977 235545</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
or via email on:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: large;"><a href="mailto:simonj@professionalproperties.co.uk">simonj@professionalproperties.co.uk</a></span></div>
Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com10tag:blogger.com,1999:blog-2874592052702338545.post-44261655932916434142015-06-11T14:26:00.003+01:002015-06-11T14:26:56.256+01:00Buy to Let in Derby. It’s all about Supply and Demand<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiORQ7CCmxOwG0PgxpCmf3EWxwQ6qc3KmdrX_MJZWYYuTPV7AqeJf0-Xerul6RZyKZANKmCugQ0GnwHQ6evYU9ZZAMLlbsHVkeDwwtVjVA3TppB9qAY67hNiVmSWXhDzqxFlCK7zrbayNpg/s1600/DPB5.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="177" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiORQ7CCmxOwG0PgxpCmf3EWxwQ6qc3KmdrX_MJZWYYuTPV7AqeJf0-Xerul6RZyKZANKmCugQ0GnwHQ6evYU9ZZAMLlbsHVkeDwwtVjVA3TppB9qAY67hNiVmSWXhDzqxFlCK7zrbayNpg/s320/DPB5.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I had a lot of enquiries and
conversations following my recent article about the state of the Derby Property
market and in particular what had happened to rents in Derby since 2008. If you
recall, I said that rents in Derby are still 4.68% lower than they were in
2008. One particular Derby landlord rang me after reading the Derby Property
Blog wanting to know more of the story of what was happening to rents in the
City. The reason he asked was that his current agent hadn’t increased his rent
for a number of years and he was questioning whether he was getting the best
return from his buy to let investment.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The Derby rental market is all
about supply and demand - isn’t it so in all parts of the economy? On the
supply side, 565 rental properties have come up for let in the last 31 days in
Derby. It sounds a lot doesn’t it until you consider there are 15,943 rental
properties in Derby, that means only 3.54% of the rental stock of properties in
Derby is coming onto the market and it is normally around 5%. One reason for this lack of new rental properties
coming on the market is the fact that tenants seem to be staying in properties
longer.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
With this lack of supply,
newer tenants have to pay more to secure the property <i>they want</i>. This is the crux of the matter.. properties<i> they want</i>. Older properties in Derby,
that haven’t been maintained, still retain their wood chip wallpaper from the
1970’s and thread bare carpets have seen their rents drop. Tenants want either
modern properties with all the mod cons or older style properties that have
been presented to an exceptional standard – and, generally, they are prepared
to pay for the privilege. Rents for top quality properties in Derby have risen
by 0.4% in the last month. Any properties, old or modern, put on the
market in good or excellent condition will rent in a matter of a few days. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhll5HcFClMIFhCAhlIJUHYeQoUHC2sE2qEAH9hSILTpBm2IA2_8Ti7TpfpN9bMW_b9UIcda1CXRZfY5PCWeBDc3UvtbIGaJsELtRbJT6mhAYgzOhFWVB-MYthw8FqKJUR2yag3wRbJkoD_/s1600/supplydemand.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhll5HcFClMIFhCAhlIJUHYeQoUHC2sE2qEAH9hSILTpBm2IA2_8Ti7TpfpN9bMW_b9UIcda1CXRZfY5PCWeBDc3UvtbIGaJsELtRbJT6mhAYgzOhFWVB-MYthw8FqKJUR2yag3wRbJkoD_/s320/supplydemand.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Interestingly, looking at Derby
property values, the Land Registry has just released it’s latest set of data on
property values. Throughout April 2015, the latest set of data, property values
remained static in Derby, with 0% growth, meaning they are now 3.3% higher than
they were a year ago. When one looks at the
regional picture, the East Midlands average property values rose by 1.4% in the
last month. The difference doesn’t concern me, as the regional and local
property values always even themselves out over the months.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Looking forward, after
considering all the statistics and talking to other property professionals, I
expect property values in Derby to rise by 3% to 5% over the coming 12 months,
following the Election result. In a forthcoming article, I will
discuss how the number of properties changing hands each month has dropped
considerably in the last 10 to 15 years in the City. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
..and so back to my chat with
the landlord.. Each property is unique and so, as his tenancy agreement allows
him to inspect the property with notice to the tenant, we will be visiting the
property next week! <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Keep reading the Derby Property Blog or get in touch; </div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" height="53" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglXrAT1OoibWsbVoaYVTwtirKympx0Pl_hpVqznTiJRf8cEXlL2_lI_Vx0OCKculrmDAdnSKq6sSdbOo4CB7JJ4AsvWM3LYl3F4oKmrfHVA7bvjtWS09ZMNHe0hLq4dAVyD7Ig2ohTD6wm/s400/email.png" width="400" /></a></div>
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<br />Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com6tag:blogger.com,1999:blog-2874592052702338545.post-34713917820197876452015-06-09T14:23:00.003+01:002015-06-09T14:23:59.441+01:00Investing in Derby – Should you look further afield? <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNFWxFGtiP5p9z1NHbhfaTU-B3bD3jJ4evYJxCY7wX8B59rUc-CKK__c3L5OT93Tum7V8ZSe9kX7k1X2qG7J6Zhic6OQGue8zbhtdpVn9Kd7c6XfYCNhaZNV1nLlZqez41OkB2fy90V6Cd/s1600/DPB2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNFWxFGtiP5p9z1NHbhfaTU-B3bD3jJ4evYJxCY7wX8B59rUc-CKK__c3L5OT93Tum7V8ZSe9kX7k1X2qG7J6Zhic6OQGue8zbhtdpVn9Kd7c6XfYCNhaZNV1nLlZqez41OkB2fy90V6Cd/s400/DPB2.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I was at a recent business
networking event in Derby, when a landlord who already owned a couple of
properties, bent my ear on where the next hot spot town or city is to invest
his money in and where the best rental yields are. Now it can be tempting to
just look at Derby when growing a buy to let property portfolio, but there can
be big differences in the amount of rental income you receive and how much your
property will appreciate by considering other locations in the country.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Now regular readers of my
articles of the Derby Property Blog know of my love of the ‘buy to let seesaw’.
On one side of the seesaw is return and the other, capital growth. Landlords
should be looking for a high rental return so that they can comfortably cover
any mortgage payments and make some profit from the income return, but you also
want the property to rise in value over time so you can get some capital growth
when you come to sell. However, high yielding property in such areas as the
Pear Tree area in Derby - sees the seesaw return arm go up - will suffer from
low capital growth - so the capital growth arm goes down. The relationship works in reverse as well, so
in such areas as Littleover, properties offer good capital growth, but at the
expense of a decent yield.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The North East and North West
of the UK are landlord magnets for great yields. The average yield in Derby
today is around 4.64%, which when you compare with say Hartlepool in the North
East, which achieves 7.73% or 9.43% in the Anfield area of Liverpool, doesn’t look
too healthy. Now of course, these are only averages and some of my Derby
landlords are achieving 6% to 7% on some of their Derby properties, but at the
expense of capital growth. Anyway, after wasting a tank full of petrol up the
A1 to Teeside or the M1 to Stanley Park,
that Liverpool property, would have dropped in value by 2.2% in the last
12 months and the Hartlepool property would have dropped by 1.4%.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhV1XZajd0fZiJf0Bf0BM_PASyxtJdUyJ87cA-IHMPQ9sbYzbCmb8I3OTr7UuOZ_7J_hdt6KuCvU7_VWe7iuV7-aKiqVph1pn4VvXV6tVuxQfCiORaY72vZ7MZQZcafVtRGnh1HQxGCqYdN/s1600/Graph1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhV1XZajd0fZiJf0Bf0BM_PASyxtJdUyJ87cA-IHMPQ9sbYzbCmb8I3OTr7UuOZ_7J_hdt6KuCvU7_VWe7iuV7-aKiqVph1pn4VvXV6tVuxQfCiORaY72vZ7MZQZcafVtRGnh1HQxGCqYdN/s400/Graph1.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
When you compare the long term
house price growth, it gets even worse. Looking at the graph, since 1995,
property values in Derby have risen by 142.6%, compared with Hartlepool at
21.02% and Liverpool at 90.11% – it just shows you shouldn’t always chase the
yield because of the poor increases in property values in those two places. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
As I always like to explain to
landlords when they either email me, pick up the phone or pop into my offices
for a coffee, a decent yield is important, but when you come to sell your buy
to let property it would also be nice to make a decent profit.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
At the end of the day, as a Derby
landlord, you want to be making gains from both your rent and house price
growth, particularly when you want to sell, because when combined, the rental return
and capital growth, that gives you the real return on your investment.<span style="color: red;"> <o:p></o:p></span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
Finally, do you know Hartlepool and Liverpool as well you know Derby? Do you know where the good and bad areas are in both those places? Are you happy that it would require you to take a day out of work if there was an issue with your property in the North? If you can’t answer yes to all three questions, then maybe you should be considering a property closer to home?<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSmxDgZMWXvM2bGM9ua8pygbJA7S03kRofiuLr7TOjkJR_YifkjNiQ8gLGw_EpVLIoL_BDppgGQtyqeRgsyh0Mk33QTw044BIovJricCNy0a75TrbqAgb3NRQc3OX2s8blg8jJGc2hQlao/s1600/simon+to+let+board.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSmxDgZMWXvM2bGM9ua8pygbJA7S03kRofiuLr7TOjkJR_YifkjNiQ8gLGw_EpVLIoL_BDppgGQtyqeRgsyh0Mk33QTw044BIovJricCNy0a75TrbqAgb3NRQc3OX2s8blg8jJGc2hQlao/s320/simon+to+let+board.png" width="262" /></a></div>
<div>
If you want to get in touch you can email me by clicking on the link below:</div>
<div>
<br /></div>
<div style="text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk"><span style="font-size: large;">simonj@professionalproperties.co.uk</span></a></div>
<div style="text-align: center;">
<br /></div>
<div style="text-align: left;">
Or you can give me a call on the mobile:</div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: center;">
<b><span style="font-size: large;">07977 235545</span></b></div>
<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com2tag:blogger.com,1999:blog-2874592052702338545.post-392717380681576332015-05-28T14:06:00.000+01:002015-05-29T14:07:31.660+01:00With the Derby Rental Market, everyone’s a winner! <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvGZmGDmDOjWA4a9qdFWXqtt8Lr9IWPPEVmfcrtTHjucELVbJRVNSunreOYec1mqRs1cGTt_MiJEs80uiqFXDM3h5M9JRlLvNLok3__bQ0FjrlTbEpbyYO7_o_xp9NvPncjK5vLK2vmx_D/s1600/DPB10.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="177" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvGZmGDmDOjWA4a9qdFWXqtt8Lr9IWPPEVmfcrtTHjucELVbJRVNSunreOYec1mqRs1cGTt_MiJEs80uiqFXDM3h5M9JRlLvNLok3__bQ0FjrlTbEpbyYO7_o_xp9NvPncjK5vLK2vmx_D/s320/DPB10.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
With the election now over and
the stability of Downing Street secure, with David Cameron and his Blue Tory’s
as the largest party in Westminster, in Derby, as in the rest of the UK,
average wages are beginning to grow faster than inflation. This is good news
for the Derby housing market, as some buyers may be willing or able
to pay higher prices given the more certain political outlook
and attractive inexpensive mortgage rates.
However, sellers who think they have the upper hand due to the lack of
property for sale should be aware that we should start to see an increase in
the number of people putting their properties on to the market in Derby
giving buyers some extra negotiating power.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
At the last election in May
2010, there were 2,067 properties for sale in Derby and by October 2010, this
had risen to 2,609, an impressive rise of 26% in five months. An increase in
the supply of properties coming on to the market could tip the balance in the
demand and supply economics seesaw, thus potentially denting prices. However,
as most sellers are buyers and confidence is high, this means there will be
good levels of property and buyers, well into the Summer, as demand will
continue to slightly outstrip supply.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Just before we leave the run
up to the election discussion, it is important to consider what the uncertainty
in April did to the Derby Property market. I mentioned a few weeks ago that property
values, defined as what properties were actually selling for, had dropped by
0.4% in March 2015. Now new data has been released from Rightmove about April’s
asking prices of property in Derby. It shows that pre-election nerves
finally came home to roost in the final weeks of electioneering, with the
average price of property coming to market only increasing by
a very modest 0.7% - this takes on more significance when you consider that April
is normally one of the best months of the year for house price growth. I am
sure our local MP’s, Margaret Beckett and Amanda Solloway, would agree that the
biggest issue is the lack of new properties being built in Derby. The
Conservative manifesto pledged to build 200,000 discounted starter homes for
first-time buyers in the next five years. For Derby to gets its share, that
would mean only 185 such properties being built in Derby each year for the next
five years, not much when you consider there are 102,271 properties in Derby!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6TAdiKXHedc6VFqPbcuVmGJa_yF_77u0LPtnHHXAffRZA1KshXxVPQXZGLQayoVKEoOgpP-5V26AlmT4Hm_p1KFr8veuYppNMKzYkRdwbkauwPqaIvpSEW_Uq1LKQS32xVSNb6QONQ9B9/s1600/610+PROPERTIES.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6TAdiKXHedc6VFqPbcuVmGJa_yF_77u0LPtnHHXAffRZA1KshXxVPQXZGLQayoVKEoOgpP-5V26AlmT4Hm_p1KFr8veuYppNMKzYkRdwbkauwPqaIvpSEW_Uq1LKQS32xVSNb6QONQ9B9/s320/610+PROPERTIES.png" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
On the face of it, it seems
that housing is not a big issue for Conservative voters and because London is
an increasingly Labour city where the biggest housing issues are found by a
country mile, so will it remain on the ‘to do list’ but probably won’t get
recognition it deserves. We may have to
wait until another political party gets back into power before something will
seismically change in the property market, thus demand for housing will
continue to outstrip supply, meaning property values will increase; good news
for existing landlords and homeowners! However, as rents tend to go up and down
with tenant wages, in the long term, rents are still 4.68% lower than they were
in 2008; good news for tenants!... in the private rental sector, it seems,
everyone wins! <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
Don’t forget, you can call in and see me at our offices on St. James’ Street to chat about everything lettings!<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:derby@professionalproperties.co.uk" target="_blank"><img border="0" height="53" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s400/email.png" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="52" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s400/call+me.png" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com7tag:blogger.com,1999:blog-2874592052702338545.post-70758573316726352322015-05-21T14:00:00.000+01:002015-05-29T14:02:08.013+01:00Property values fell by 0.4% in Derby<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uiTnk4HDJXwv_-sDSxXlyAgTNFlRWSvQCfOhJAPTfIE6ADJ0hxOuEKkeXPpPV6i_gyxTb0WH623N-6_ugR4UmHhPVuLgeH_VbZv6BA9aU-GZVvJM3eua7NxufiKEoYk94OSqd-AAT1rx/s1600/DPB4.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uiTnk4HDJXwv_-sDSxXlyAgTNFlRWSvQCfOhJAPTfIE6ADJ0hxOuEKkeXPpPV6i_gyxTb0WH623N-6_ugR4UmHhPVuLgeH_VbZv6BA9aU-GZVvJM3eua7NxufiKEoYk94OSqd-AAT1rx/s320/DPB4.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Property values in Derby fell
by 0.4% in March. This follows several months of sluggish activity in the Derby
property market in the run up to the Election, putting the average price of a
property in Derby at £170,400, 3.7% higher than in March 2014. Despite the not
so insignificant fall in March, the figures showed property values in Derby
were still higher in the first quarter of 2015 than in the last quarter of 2014.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Interestingly, the Council of
Mortgage Lenders and Estate Agent trade bodies over the last few months have reported
seeing a fall in mortgage lending and enquiries from prospective homebuyers. This
is important because it comes amid an overall fall in housing market activity
in Derby. Data from the Land Registry state that completed house sales in Derby
in the three months to January 2015, (the most up-to-date figures available)
fell by 10.49% (compared to the same three month period up to January 2014).<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, I believe that the
slowdown in property sales in Derby is actually supporting Derby property
values, as there is a shortage of houses coming onto the market. Even though in
the whole of the first Quarter of 2015, Derby property value increases may seem
subdued when compared to 2014, let us remember, property values are still
rising well above the level of inflation.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
As I have said many times
before, the population in Derby is growing at a much higher rate than the
number of properties being built. This increasing demand for a roof over
people’s head in Derby, which is outpacing the supply of new houses being built
in Derby, is creating a severe imbalance
in both the Derby and the rest of the UK housing markets, thus making
homeownership an ever increasingly distant dream for many of Derby’s potential
first time buyers.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEitQoxIpUHcJsLMwySL4gpdaCr0yxjolnVNQG_e9BzHw9SnX8AqUebBoFsAyUCPuXrnwmx0rzPt1SzE9MpNawG2Aztg8oZFHjXEIxtd1fopDRpjxD-yA612TW7S5fSDGMligK440KlCuslB/s1600/iStock_000007148318Small.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEitQoxIpUHcJsLMwySL4gpdaCr0yxjolnVNQG_e9BzHw9SnX8AqUebBoFsAyUCPuXrnwmx0rzPt1SzE9MpNawG2Aztg8oZFHjXEIxtd1fopDRpjxD-yA612TW7S5fSDGMligK440KlCuslB/s320/iStock_000007148318Small.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In fact, I still maintain the
view that house prices are likely to rise by around 3 to 5% in Derby in 2015,
even after taking into account this blip at start of the year. The reason being
is that the rise reflects both strong economic conditions and steady market
conditions with and, this is the most important factor, very low numbers of
properties on the market.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Many Buy to Let landlords know
that investing in the Derby property market is a long term strategy of 10, 20
even 30 years. Governments come and go, but unless the powers that be start to
build thousands of new properties a year to make up for the shocking lack of
supply, we will continue to have problems. Derby people will always want a roof
over their head, and irrespective of which party is in power, if there aren’t
any council houses and they can’t, or are unable to buy, a demand for rental
properties will always remain.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
As my existing Derby landlord clients will testify, whether you manage your property yourself, or another Derby agent manages your properties, everyone is always made to feel welcome when they pop in for a coffee at our offices in Derby to discuss anything to do with the Derby property market, and how Derby compares with its closest rival towns. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. However, if you are too busy to pop into town, you could always visit the Derby Property Blog for advice, intelligent commentary and analysis of the Derby Property market!<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" height="53" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s400/email.png" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com3tag:blogger.com,1999:blog-2874592052702338545.post-33567300094423376032015-05-13T07:58:00.000+01:002015-05-13T07:58:14.508+01:00What does the General Election result mean for the Derby Property Market?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="177" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s320/DPB3.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
After the shock of the
Conservatives returning to power with a majority at Westminster, all the
potential issues and possible uncertainties of a hung parliament has lifted the
cloud from the Derby property market. Talking to other Derby agents, surveyors
and solicitors in the area over the last few days, there are signs this has
started a new impetus the Derby property market after a subdued six months,
when an amalgamation of tougher lending conditions, a natural correction after
the strong recovery in Derby property prices in 2014, and political uncertainty
ahead of the General Election slowed demand.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Against the back drop of
Labour’s election promises of rent controls and three year tenancies, some
Derby buy to let landlords were waiting to see how these new policies would be
implemented before they committed themselves to buying more property for their
portfolio. Now that uncertainty has been removed, the long term picture is very
positive.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So, where next for the Derby
property market? Well, with inflation at zero and with the Money Markets happy that
David Cameron is still at No.10, the Bank of England have no reason to raise
interest rates until 2016 at the earliest. As mortgage rates are at their
lowest levels since 2010, landlords with larger deposits will now be wooed by
the mortgage companies in the coming months with low rates.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Over the past couple of years,
Derby landlords have benefitted from a booming Derby job market. Unemployment
in the city has dropped to 3.15%, as a year ago, 5,357 people were claiming
unemployment benefit compared with today’s 3,287. With more jobs and better
pay, as the level of rents is directly linked to tenant’s wages, there has been
an increase in the rental prices tenants are willing to pay for good quality
Derby properties.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcHTcm6UYh9tR3s9QmD88BZGcKvvRO2laIX_YRhs3dcZTVkt9Jj9D7oidBmPue3E5jsLFhF5j82prSt4VbuzHtEtIcKYPzr4YrztoBwaQKOdNg8amdD0HiwdxwYFYaoERHnUMtzkKPPlHz/s1600/david_cameron_3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcHTcm6UYh9tR3s9QmD88BZGcKvvRO2laIX_YRhs3dcZTVkt9Jj9D7oidBmPue3E5jsLFhF5j82prSt4VbuzHtEtIcKYPzr4YrztoBwaQKOdNg8amdD0HiwdxwYFYaoERHnUMtzkKPPlHz/s320/david_cameron_3.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Some landlords might be
nervous about the Tory’s plans for the housing market in the next five years in
terms of tenant demand for their rental properties. One plan is for Housing
Association tenants to have the right to buy their property. However, these
tenants were never in the private rented sector and will actually increase the
supply of properties in the housing stock in decades to come. The Government
‘Help to Buy Scheme’ has only helped to buy 180 Derby properties since April
2013. Considering 4,366 properties have changed hands in the last year alone in
Derby, I don’t think it has made a huge difference to our local property
market.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The biggest matter, when it
comes to tenant demand of rental property going forward, comes from the shift
in the mindset and attitudes towards renting itself. Twenty years ago, in some
quarters, you were seen as a second class citizen if you rented a property. Not
any more! In Derby, as in the rest of the UK (apart from Central London),
renting continues to offer good value for money for tenants. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
If you are an existing landlord in Derby or thinking of becoming one (or as we like to call you.. a FTL.. a ‘first time landlord’), then I must recommend you out seek specialist advice and opinion. Like many agents in Derby, we will happily give you our opinion on the current state of the market and the advantages/disadvantages to investing in the Derby property market, so why not you pop into our offices for a chat. However, if time is at a premium, another source of information on the Derby Property Market is the Derby Property Blog!<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" height="53" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s400/email.png" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="52" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s400/call+me.png" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-60310685138500780862015-05-08T13:11:00.002+01:002015-05-08T13:11:58.577+01:001303% return for Derby landlords since 1999...<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyclxOVtowbYMn42WEwGxP4siiwdt-W2C2CQN94GporFHG4ypiexr3vg3TgzfOlskU875oyQvz3HZvEw2DA3Pe35R38SmsVTCnUlik-Y16xpmtqhmLzg7YlCaa36gOYG9HBc9QfCznMQEa/s1600/DPB10.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyclxOVtowbYMn42WEwGxP4siiwdt-W2C2CQN94GporFHG4ypiexr3vg3TgzfOlskU875oyQvz3HZvEw2DA3Pe35R38SmsVTCnUlik-Y16xpmtqhmLzg7YlCaa36gOYG9HBc9QfCznMQEa/s400/DPB10.jpg" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Investing in property is
essentially different from investing in stocks and shares or putting money in
the Building Society. Whilst these other investments (Building Society
Passbooks, Stocks and Shares etc) are passive
<i>i.e. once the money has been invested it you leave it
alone, </i>with buy to let, things are more hands on, in fact it’s almost a
business!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
One thing the landlords I
speak to say is the fact that they like buy to let because it is both an
investment as well as a business. It is this factor that attracts many of my Derby
landlords – they are making their own decisions rather than entrusting them to
others - such as City Whizz Kids in London playing roulette with their pension pots.
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So if you are investing in the Derby property market, you
can earn from your investment in two ways. When a property increases in value over
time, it is known as<span class="apple-converted-space"> </span><strong><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;">'capital growth'.</span></strong><span class="apple-converted-space"> </span>Capital growth, also known as capital
appreciation, this has been strong in recent times in Derby, but the value of
property does go up as well as down just like shares do but the initial
purchase price rarely decreases. Rental income is what the tenant pays you -
hopefully this will grow over time. <span style="background: white;">If you
divide the annual rent into the value, or purchase price, of the property, <strong><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: minor-latin;"> this is your yield, or annual return. </span></strong><strong><span style="font-family: "Calibri","sans-serif"; font-weight: normal; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></strong></span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
I was talking to a landlord who bought a terraced house in the Dairyhouse Road area of Derby. He bought a very pleasant 4 bed terraced house in 1999 for £27,000. It sold again in January just gone for £115,000, a rise of 325.92% in just over 15 years – a compound annual return of 10.14%.<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSPFY2DLYKzHBqHmsaslLsW3XIg288fb-A9P1WFjHvN0r7z4d4WSmK4HIbhYWVuDRb6zPzyPQRv7JDpTWfxb6fz51f2lJBnV4cn1783vdQgeFXn3rBnTyaXcb5eFXI4mg5ns3LonC2zsDM/s1600/ROI.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="243" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSPFY2DLYKzHBqHmsaslLsW3XIg288fb-A9P1WFjHvN0r7z4d4WSmK4HIbhYWVuDRb6zPzyPQRv7JDpTWfxb6fz51f2lJBnV4cn1783vdQgeFXn3rBnTyaXcb5eFXI4mg5ns3LonC2zsDM/s320/ROI.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, the real returns are
for those Derby landlords who borrowed money to purchase their buy to let
property. They have made significantly higher returns than those who paid 100%
cash. If the landlord had borrowed 75% of the £27,000 purchase price of the Dairyhouse
Road terraced house on an interest only 75% mortgage, he would have only needed
to invest his deposit of £6,750 and then borrowing the remaining £20,250. His
£6,750 would be worth £94,750 today; £115,000 less £20,250 interest only
mortgage) ..a rise of 1303.7%! - <strong><span style="background: white; font-family: Calibri, sans-serif;"> a compound annual return of 19.26%. ..and I haven’t even mentioned the rent he
would of received in those 15 years!</span></strong><strong><span style="background: white; font-family: Calibri, sans-serif; font-weight: normal;"><o:p></o:p></span></strong></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
This demonstrates how the Derby
buy to let market has not only provided very strong returns for average
investors since 1999 but how it has permitted a group of motivated buy to let Derby
landlords to become particularly wealthy. In fact, if this landlord had
continued to remortgage the property as it went up in value, he could by our
reckoning have had an additional two or three properties, albeit with larger
mortgages but greater future potential. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
As my article mentioned a few weeks ago, more and more Derby people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to grow from strength to strength. If you want to know what (and would not) make a decent property to buy in Derby for buy to let, then one place for such information would be the Derby Property Blog!<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" height="53" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s400/email.png" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="52" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s400/call+me.png" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com3tag:blogger.com,1999:blog-2874592052702338545.post-44003831919908528102015-05-01T15:05:00.001+01:002015-05-01T15:05:42.712+01:00Will the Election cure the issues within the Derby property market?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX6jFCXvmUeXVetxI72iQEYeuArgg0jCxEIkE6fNhyMzSv8eF6xTzoBhGPBiJwHKRwaCfbuBQw0Szpy0sdoEjzMRXOiFhfm0CvrL8GivYaNVle1EY6sadk3KVd-XW4Fivzza45l5DbA6g-/s1600/polling.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX6jFCXvmUeXVetxI72iQEYeuArgg0jCxEIkE6fNhyMzSv8eF6xTzoBhGPBiJwHKRwaCfbuBQw0Szpy0sdoEjzMRXOiFhfm0CvrL8GivYaNVle1EY6sadk3KVd-XW4Fivzza45l5DbA6g-/s1600/polling.png" height="240" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
With the General Election
almost upon us, all the parties are trying to woo voters with policies that
will attract those important votes come the 7<sup>th</sup> May 2015. </div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b><br /></b></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<b>There are 30,724 tenants of voting age in
Derby living in private rented accommodation</b>. In a tight election, their
votes could be crucial.</div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Labour’s motivation to keep
the private rental sector rents in line with inflation is pretty straightforward;
cap rents and extend tenancy terms whilst the Conservatives are focussing on a ‘Right
to Buy’ solution. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Since the turn of the Millennium,
there has been a significant change in the proportion of people who own their
own home in Derby. In 2001, 69.23% of homes in Derby were owner occupied, today
the figure is 61.37%, a significant decline in such a short time. Buy to let landlords can find tenants because
young people say they cannot afford a deposit to buy unless they inherit money
or are given a loan from the ‘Bank of Mum and Dad’ …but wasn’t that the way how
most people got on to the property ladder; 10, 20 even 30 years ago or you just
got on and went without and saved up?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In Derby, only 38.08% of 25 to
34 year olds have a mortgage. When you compare Derby against the national
average of 35.93%, it just shows how different parts of the country have
different housing markets. However, the really interesting fact is that if you
roll the clock back to 1991 and nationally, 67% of 25 to 34 year olds had a
mortgage. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
After WW2, the supply of
properties being built kept up with demand as millions of council homes were
built. Also private house building increased in the 1950’s, but especially in
the 1960’s and 1970’s, and as the Country
got more prosperous it meant that by 1971, there were more home owners
than renters. However, since the 1970’s, the population has grown but the
number of new properties being built hasn’t kept up at the same rate, the
result is that there have been huge rises of property prices in the early ‘70s,
the late 80s and more recently between 1999 and 2004. Interestingly, since the
early 1970’s, out of the 34 richest countries in the world, the UK has seen
highest property prices rises.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
95% mortgages have been
available to first time buyers since late 2009, but with property prices rising
by 153% since 1997 in Derby, as property prices have been rising and first time
buyers have been saving, the amount they have to save is continually rising at
the same time. The stress on saving even for that kind of deposit, coupled with
the new stricter mortgage rules introduced in 2014, means that most 20/30
something’s in Derby are renting instead of buying. Yet at the same time, don’t
blame the landlords for this. For every mortgage approved for a landlord last
year, three were approved for first time buyers!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCRzJbPKNERHkIQ9zWohYrSVCXGOCxL5zJBaB6GhEPGKAqXDNdnSecWnCQygJ49rs2qIts6G5U7-Nqlyfq2QJdlaUXrwBZuTKVSXATXAP17HqJzwkhieKYABx3xjpALVivo4T4kAdRiZAI/s1600/election.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCRzJbPKNERHkIQ9zWohYrSVCXGOCxL5zJBaB6GhEPGKAqXDNdnSecWnCQygJ49rs2qIts6G5U7-Nqlyfq2QJdlaUXrwBZuTKVSXATXAP17HqJzwkhieKYABx3xjpALVivo4T4kAdRiZAI/s1600/election.png" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The issue quite simply comes
back down to a lack of new homes being built. In Derby, only 984 properties a
year are being built whilst the population is rising by 2,250 a year. The
supply of new homes has been limited by planning laws, local councils not
having the money to build council houses, hard-hitting green belt limitations,
and our old friend nimbyism (Not in my back yard!). In fact, I read the Lyons Housing Review Report
a few months ago, and in it, it said that at least 243,000 properties a year need
to build to keep up with the number of new households being formed in the UK.
In 2014, the country only built 109,000! <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
With a rising population and
net migration, especially from the EU, the mismatch between demand and supply
is why we have the problem. Until politician’s have the backbone to realise the
Country needs a lot more decent homes built, the problem will just get worse.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
In the meantime, demand for rental property will continue to grow because people need a roof over their head at the end of the day ......fact.<div>
<br /></div>
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<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com1tag:blogger.com,1999:blog-2874592052702338545.post-40943385082758902892015-04-23T17:15:00.001+01:002015-04-23T17:15:37.578+01:00Just who are the Renters in Derby?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" height="177" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Speaking to a Bank Manager the
other day in Derby, we got talking about the state of the Derby property market
and whether we, as a country, are turning more and more to the European style
of property ownership, where it is the norm to rent as a opposed to
automatically buying once you have a good job etc.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Even though a recent report by
the Halifax stated homeownership remains a goal for 85% of twenty to forty five
year olds, there is information emerging that attitudes in the UK towards
renting your own home as opposed to owning it have softened, showing more and
more, that renting is being seen as a life style choice. In fact it is recognised in learned circles
that the cycle of renting is also repeated by the fact that people who
grow up primarily in rented accommodation are themselves more likely to
rent than buy.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Many people think that the
UK should lose its fixation with homeownership and that people would be
happier as a result. If this pattern were to continue, then this would
suggest that the people entering the housing market are less likely to
want to own a home, and are more likely to remain ‘Renters for Life’, irrespective of changing
market conditions, leading to a longer
term shift in the home ownership make-up of the country.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The biggest barrier often mentioned to buying a house is the claim that
they are not buying property at the moment because of a lack of sufficient
wages and by the high level of deposits but like we said a few weeks ago,
in Derby, a single person on the average Derby salary of £26,241pa, assuming
they had a reasonable credit history they would be showered with lenders
offering them a 95% mortgage (a reasonable credit history means they haven’t defaulted
on loans, paid all their bills on time nor got any County Court Judgements.
Just because you missed just one credit card payment won’t mean you have messed
up your credit score and your ability to get a mortgage) <u>and</u> they would only need to find £4,500
as a deposit to buy a decent terraced house in Rosehill. ..it comes down to the
<b>perceived capability</b> of the
youngsters in Derby to buy nowadays.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Interestingly, when I looked at the Derby figures, the average Derby tenant has a younger profile than the England and Welsh average, as can be seen from the graph below. What interested me as well was the relatively large number of people renting over the age of 50! I know we have a large number of mature tenants at our agency, but I always thought that was the exception to the rule. Obviously not! - and that is good news for landlords as they make excellent tenants!</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUVmdiKa6XNfTjfLFkDK2DHEea4Be8q_HDkczu4l5ePJnWkPJ1huP2AW5DrmeiZwgHSq_PwypFvs68ts5m44RAHz3Gsj2E5wcdn-bzd9FWWvYywxrIqr73fg1yKmxv2lnOHewcpA1I5yAK/s1600/55+Graph.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUVmdiKa6XNfTjfLFkDK2DHEea4Be8q_HDkczu4l5ePJnWkPJ1huP2AW5DrmeiZwgHSq_PwypFvs68ts5m44RAHz3Gsj2E5wcdn-bzd9FWWvYywxrIqr73fg1yKmxv2lnOHewcpA1I5yAK/s1600/55+Graph.jpg" height="266" width="400" /></a></div>
<div>
<span style="text-align: justify;">So what does all this mean for
Derby landlords and future Derby landlords? I honestly believe there is a
difference between the hope and perceived capability of the younger
generation to buy a home. Although homeownership is seen as advantageous
by a majority, many tenants admitted in the Halifax report they are not taking
the steps they need to purchase their own home.</span></div>
<div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
As the local authority aren’t building any properties in Derby, people still need a roof over the head, and that is why, as I mentioned a few weeks ago in the Derby Property Blog, the demand for rental properties will only continue to steadily rise in the coming decade. If want to know where the Derby Property market is heading and where you should (and shouldn’t buy), maybe the one place you should visit is the Derby Property Blog or send me an email!</div>
<div>
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<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-88810294690623746672015-04-09T09:33:00.000+01:002015-04-08T09:36:09.156+01:00Derby v London.. it's like being in a different country!<div class="separator" style="clear: both; text-align: center;">
</div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" height="177" width="320" /></a></div>
I had an interesting
conversation with a local Derby accountant the other day. He is quite an observant
chap - I know this because I have known him for a few years, but I suppose you
have to be to be an accountant! Anyway, he mentioned a few things he had
noticed recently in Derby, one that Derby property prices had gone up in the
last few years but nowhere near the growth levels that were being achieved in
central London, and secondly, that he thought the number of for sale boards in
Derby - and more importantly ones with sold slips on them - had increased over
the last couple of years.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The rate of house price
inflation in Derby continues to slow with growth of 4.6% in the 12 months to
February compared to 5.5% just over six months ago, according to the latest
Land Registry data. However, there is considerable local variation with house
price growth ranging from 1.6% in Leicester, to 8.3% in Northamptonshire over
the last 12 months.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Whilst Derby hasn’t seen the
20%+ per year in house price growth of London over the last couple of years,
Derby has seen a sharp uplift in the number of properties sold throughout 2014
as base line demand for housing grows, which suggests there is substance to the
recent pick-up in house price growth in the City. Since the Second World War in
the UK, when the number of properties sold has grown, property values grew soon
after. The 7% uplift in property transactions in Derby in 2014, compared to
2013, indicates the most significant recovery in house market activity in Derby
(outside London) since 2007.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2iSyGWm1Ey0G2AxRJmyz57rord0Q04Fx-1EcCISErdq7oIKQOm7-Z-XjEKEDS2Vhgc7nLTjaBZhI6602LK1WJdl38Q13KfJ_rSS2kDXrZPEbqfjWkzx3DA-MSCbcyMtpp8XcWuuDD7gq7/s1600/harrods.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2iSyGWm1Ey0G2AxRJmyz57rord0Q04Fx-1EcCISErdq7oIKQOm7-Z-XjEKEDS2Vhgc7nLTjaBZhI6602LK1WJdl38Q13KfJ_rSS2kDXrZPEbqfjWkzx3DA-MSCbcyMtpp8XcWuuDD7gq7/s1600/harrods.jpg" height="211" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
When you compare Derby with
London, you could be looking at two different countries. In London, its
mid/late teens house price to earnings ratios are impacting demand; i.e. the
average property value is often 15 or 17 times the average wage in London.. in
fact, in Knightsbridge the ratio can be 30 to 1. However, the number of people wanting to sell
has dropped considerably, meaning that falling sales volumes combined with a
general slowdown in activity in the run up to the General Election are
resulting in lower mortgage approvals for home purchase.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Transactions are a great
indicator for house prices. The acceleration in house price growth in London in
the last two years was preceded by three years of rising transactions. A
similar pattern is being registered in the Derby area, as pent up demand
returns to the market supported by low mortgage rates and an improving economic
outlook.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
But before you get the
Champagne out, while the uplift in activity is welcome news, the number of
Derby property sales in 2014 is still 58.8% lower than the level seen in 2007
and property values are 11% below the 2007 levels. The ongoing housing recovery
is far from broad based and remains focused on middle to higher value areas
within Derby where households have equity and find it easier to access mortgage
finance. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNoSpacing" style="text-align: justify;">
If you want to know more about
the Derby Property Market, please to not hesitate to contact me! Mobile, office, text, e-mail, carrier pigeon - I'm not bothered!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
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<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwVRpGE3S4dF2kRBzCxSLgjDOaYhNNv_9OoiXbcoCmdaCB3u3tDShyphenhyphenbpqlwziNWxLpGdF1wwyDVxKpIz0gDAPffTm64oVMf8YDR7b1SiAKkfezGkebVvcAlZATGmjCpWJ_eWS1qwUYE5sX/s1600/carrierpig.png" height="200" width="190" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com2tag:blogger.com,1999:blog-2874592052702338545.post-174543986411931612015-04-02T09:24:00.000+01:002015-04-08T09:25:20.817+01:00Have we got a dual speed property market in Derby?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s1600/DPB1.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s1600/DPB1.jpg" height="177" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Even with the General Election
on the horizon, property values in Derby are still 0.42% higher than they were
3 months ago, the diversion and ambiguity of an election typically makes house
sellers who need to sell, price their property more realistically - although
this only lasts a couple of months!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Looking specifically at it
from a Derby landlord’s point of view, the Derby properties favoured by investors
are in short supply in many parts of the city because of a number of factors. One
of the factors has been that we seen the number of first time buyers coming to
buy their first home increase over the last 12 months in Derby. Another
factor has been the fact that the banks have been pushing ‘let to buy’ - yes ‘let
to buy’ is different to ’buy to let’! - to homeowners (<i>more of ‘let to buy’ in an up and coming article</i>). Next, because of
the banks, who are chasing low risk landlords with high deposits with very low
mortgage rates - and the low risk landlords with high deposits tend to be
attracted to the safer modern two and three bed town houses and semis in Derby.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
As I mentioned a few weeks back, the pension rules are
changing which means buy to let landlords can use some, or all, of their
pension pot to buy a property. It
shouldn’t be forgotten there are tax implications taking more than a quarter of
your pension pot out (see the article from a couple of weeks ago), so whilst
many pension pots may not be able to fund a suitably big enough tax free lump
sum to buy the property outright, for most it will provide enough for the 25%
deposit required by most BTL mortgage providers. It shouldn’t be forgotten
landlords that the interest paid on the mortgage is tax deductible against the
rent, thus lowering your income tax paid.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In the last 12 months, I have
noticed a particular uplift in interest from ‘50 something’ Derby people
wanting to become landlords for the first time. In Derby, the highest returns
for the lowest investment are at the lower end of the market e.g. the classic
Victorian terraced house. Unfortunately Victorian terraced houses, with two
bedrooms are coming to the market in smaller numbers than the larger four bedroom
ones in top end sectors of the Derby
property market. <o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicra3ueJlsjwd12FLp8qQq5k3F88_U7HLnt4l1t4BWrJGYphZ7byixF9bUy07FRUI_OzbMPyJJOXbeULtA0h9M6BeDyhdq8R3jHqDd4-mUv4dmr0PyxfwXOvsOLAsK8sPLFxRXx7d-TxtX/s1600/2speed.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicra3ueJlsjwd12FLp8qQq5k3F88_U7HLnt4l1t4BWrJGYphZ7byixF9bUy07FRUI_OzbMPyJJOXbeULtA0h9M6BeDyhdq8R3jHqDd4-mUv4dmr0PyxfwXOvsOLAsK8sPLFxRXx7d-TxtX/s1600/2speed.png" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
When looking at the actual
numbers, in the latter part of the Summer of 2014 in Derby, in one month alone
589 two bed houses were on the market in Derby. However, in January this year,
a notoriously excellent bumper month for properties coming on to the market, there
were only 440 two bed houses on the market in Derby to choose from. Today, that
figure stands at only 360..whilst the number of four and five beds has
increased significantly... interesting
don’t you think?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
At that lower end of the property market in Derby, where first time buyers and landlord investors compete with each other to buy those smaller properties, I believe throughout 2015, there will be a slow and steady tipping of the scales between supply and demand. In fact, from what I am seeing and hearing, early anecdotal evidence has suggested over the last few months (although we will need to look at figures later in the Spring once we have the data from The Land Registry), we are beginning to see a polarised Derby property market, where we have high demand but low supply at the bottom end of the property market, yet high supply but lower demand at the top of market.. and that can only mean one thing ... prices will go up quicker on the smaller properties than the larger ones in Derby, thus narrowing the gap for people looking to move up market!<div>
<br /></div>
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<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com2tag:blogger.com,1999:blog-2874592052702338545.post-42880328046379722832015-03-31T02:00:00.000+01:002015-03-31T02:00:01.810+01:00Rent Guarantee. It's a No-Brainer!When a landlord invests in property, insurance is an area some end up neglecting. The kind of cover that a standard home policy deals with is often inadequate for the requirements of landlords. This is because they need a policy that deals with all sorts of potential issues to do with tenancies, third party damage and so on.<br />
<br />
Landlords are aware that the usual landlord insurance policies will provide them with protection against such events as damage caused by a tenant as well as rent lost when a property is inhabitable following a valid insurance claim. However, these policies will not stretch as far as actually covering the rent when a tenant simply fails to pay up.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuR57-EqHlyYiiaNFCghuvgKDX8YVxWegICUVXoChx7Im8tVZe8Hoxq39NS5xlv7FQX8kVW6ezvMvJKUz1akfW_CdxKYQneD2Nq-B30jrMahF5ZY4Z5d4PycosiNYJzaU1E59h4apGakxu/s1600/Homepage+image4.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuR57-EqHlyYiiaNFCghuvgKDX8YVxWegICUVXoChx7Im8tVZe8Hoxq39NS5xlv7FQX8kVW6ezvMvJKUz1akfW_CdxKYQneD2Nq-B30jrMahF5ZY4Z5d4PycosiNYJzaU1E59h4apGakxu/s1600/Homepage+image4.jpg" height="153" width="400" /></a></div>
It is very realistic that there are occasions when a tenant simply fails to pay, be it out of malevolence, financial incompetence or a sudden change for the worse in their financial circumstances that they might not even tell the landlord about. Landlords without a rent guarantee insurance policy may be in for a shock. Those who do have such cover can rest easy. It is at this point where a landlord can make a claim on their rent guarantee policy and ensure their rental income is safe. The insurer can then chase up the tenant for the shortfall. For those landlords who don't, the implications can be awful, especially if there is a mortgage on the property and the rent is relied upon to help make the necessary loan repayments.<br />
<br />
<br />
One of the great benefits of having Rent Guarantee insurance in place is that the policies often include Legal Expenses cover necessary for potential evictions. Lengthy court cases take up time, energy and can stifle cash flow. However, your Rent Guarantee insurance can cover the legal costs and help reduce the process.<br />
<br />
Indeed, with disputes often ending up in court, it is not just the repayment of the missing rental money that becomes an issue. Legal costs can be prohibitive for landlords if they are unable to get the money without recourse to such measures, so it will be reassuring to know that rent guarantee insurance can also take care of this, particularly as legal fees will be much harder to pay for those whose budgets are hit by non-payment.<br />
<br />
There is always a chance landlords will be hit by non-payment. How much better it would be to have a policy in place that will help mitigate losses, as well as ensuring legal costs are covered to prevent a catch-22 situation occurring where an investor is too cash-strapped by the loss of income to pay for the legal action needed to recover unpaid rent.<br />
<br />
<br />
Professional Properties offer two types of Rent Guarantee protection. Firstly, we offer the a policy that will recover rent if the tenant fails to pay. The policy includes such benefits as Nil Excess; Payable until vacant possession; Cover limit of £2,500; Total claims limit of £50,000; Full legal expense cover.<br />
<br />
An alternative is our RentOnTime product which guarantees to pay your rent, on time, every month, whether your tenant pays on time. The great advantage of this is that the payment of rent is not retrospective, it is immediate.<br />
<br />
If you wish to discuss either of the products in more detail, then please do not hesitate to contact me directly on 07977 235545 or our lettings office in Derby on 01332 366171.Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-6830805039452707592015-03-29T12:57:00.001+01:002015-03-29T12:57:37.177+01:00Government plans to allow subletting.. What effect on landlords?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVbJprPthi5OoolLdmrkR1OAAFl8ORJRz2fIqFsB_MX24v2uNZX3lyi5g-Xj-pkJs-nLh1pZZqAkug6Zr8gn8-KgAdqhNOa0yxve81Q7MGxutej9m9tvN5Ly4EWbQsyR4X2m2fvBUjBrSe/s1600/budget.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVbJprPthi5OoolLdmrkR1OAAFl8ORJRz2fIqFsB_MX24v2uNZX3lyi5g-Xj-pkJs-nLh1pZZqAkug6Zr8gn8-KgAdqhNOa0yxve81Q7MGxutej9m9tvN5Ly4EWbQsyR4X2m2fvBUjBrSe/s1600/budget.png" height="221" width="400" /></a></div>
George Osborne's Budget seemed to be aimed at homeowners and first-time buyers - but hidden in the small print is a change of rules for renters. And it could be a big deal. Renters sometimes face strict rules on sub-letting, which can create a sticky situation if one tenant suddenly needs to leave.<br />
<br />
But could this be about to change? In the 2015 Budget, the Government outlined plans to make it easier to sub-let rooms. In particular, it plans to ban landlords from introducing rules preventing us from sub-letting on a short-term basis. This could be on the cards for longer-term tenancies as well.<br />
<br />
Almost buried on page 51 of the Budget Red Book the Chancellor gives a very brief outline of his intention to prevent the Private Rental Sector from stopping tenants being able to sublet.<br />
<br />
This document states:<br />
<br />
<i>“<u>Support for the sharing economy 1.193</u></i><br />
<i><br /></i>
<i>The government wants to ensure that Britain is the global centre for the sharing economy, enabling individuals and businesses to make the most of their assets, resources, time and skills through a range of online platforms. This Budget therefore announces a comprehensive package of measures that will break down barriers, create opportunities for sharing, and unlock the potential of this dynamic and growing area. Building on the recommendations of the independent review of the sharing economy, the government will:</i><br />
<i><br /></i>
<i>Make it easier for individuals to sub-let a room through its intention to legislate to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis, and consider extending this prohibition to statutory periodic tenancies.”</i><br />
<br />
The government hasn’t given any further details about the proposal which could mean anything from letting spare rooms in rental properties to giving tenants the power to sub-let entire properties to third parties.<br />
<br />
Residential Landlords Association (RLA) chairman Alan Ward described the move as a <i>“nightmare in the making” and said it smacked of “back of the fag packet” policy making".</i><br />
<br />
Key questions remained unanswered such as who will be responsible for a property if the tenant sub-letting leaves the house but the tenant they are sub-letting to stays? Similarly, given the Government wants landlords to check the immigration status of their tenants, who would be responsible for checking the status where sub-letting occurs?<br />
<br />
Eviction specialist firm Landlord Action said the move would be <i>“catastrophic for the rental industry”</i>.<br />
<br />
Founder Paul Shamplina has repeatedly warned about the increase in subletting scams in the private rented sector.<br />
<br />
<i>“We have never seen so many subletting cases going to court because of unscrupulous tenants trying to cream a profit from a property they have rented,”</i> he said. <i>“We experience continual problems with tenants taking out tenancy agreements and then, in some instances, not even moving into the property themselves, but putting up partitions and subletting to as many people as possible. They draw up separate agreements and trick sub-tenants into thinking they are the landlord. By the time landlords find out, damage to properties from over-crowding can run into thousands, and the tenant who holds the legitimate tenancy agreement is nowhere to be found.”</i><br />
<br />
Sub-letting also throws up problems from an insurance point of view. Pricing for landlord insurance policies is based on the tenant type, among other factors, with insurers attributing higher risk for certain types of tenant.<br />
<br />
<i>“It will be difficult for a landlord to disclose the details of their tenants, and answer the risk question accurately if they no longer have the final say on who occupies their property”</i> said Steve Jones, director of Rentguard Insurance. <i>“The real problem would come if underwriters decide to charge the higher rate to everyone to factor in the likelihood of damage cause by tenant’s sub-letting the property.”</i><br />
<br />
Problems may also arise as tenants are unlikely to professionally reference those they sublet to and may as a result know very little about them, their lifestyle, background and ability to regularly pay the rent.<br />
<br />
So, it remains to be seen if the government will rethink this move after the backlash it has faced from the private rented sector, as at the moment it is hard to see who this new ruling actually benefits.<br />
<br />
Keeping reading my blog for further updates.Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-42859312765816904882015-03-26T09:00:00.000+00:002015-03-26T09:00:08.208+00:00Rents paid by tenants In Derby are on the rise…<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXUmV-0vk9VpMJPUZ-9lbWLSxOnM-qAYapoEUD7TlHMkoNFm-Su2fLY8llyUu-vHooiqhNkZ3NLTwn2puBQwqMA7x___LOJHDmqRD09HUx1zKxIhbDePPIgtZo-2GuYZHR3Rz32-tmY4oK/s1600/DPB7.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXUmV-0vk9VpMJPUZ-9lbWLSxOnM-qAYapoEUD7TlHMkoNFm-Su2fLY8llyUu-vHooiqhNkZ3NLTwn2puBQwqMA7x___LOJHDmqRD09HUx1zKxIhbDePPIgtZo-2GuYZHR3Rz32-tmY4oK/s1600/DPB7.png" height="177" width="320" /></a></div>
<div class="MsoNormal">
<span style="text-align: justify;">With Easter almost upon us and
considering we are a quarter of the way through 2015, I was talking to landlord
from Allestree the other day about what is happening to the level of rents that
are being achieved in the Derby property market.</span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
In terms of rents in Derby, it
appears that rents being achieved for new rentals (i.e. when the tenant moves
out and new tenant moves in) have risen by 4% in the last 12 months on top of
the range modern semis, yet remained static for older Victorian terraced houses.
However, landlords with existing tenants, irrespective of age, are not
increasing their rents, as most landlords prefer to keep their existing tenant
paying the same rent and have the peace of mind that their tenant remains,
paying the rent thus reducing the risk of a void period.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It must be remembered rents dropped
by 7.8% over 2008/9, due to oversupply in the rental market in 2009.) A lot of
the people who couldn’t sell their property in Derby in 2008/9 when the Credit
Crunch hit in 2008, decided to let their house out instead of selling at a
loss. In fact, the number of houses on the market in Derby dropped by 62.5%
between March 2008 and March 2010, a lot of which came on to the rental market
in Derby. However, looking at the longer term though, tenants have had it
good because since the turn of the
Millennium, average wages have grown by 46%, but rents outside London have only
grown by 36% rental growth over this period.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I told the landlord that there
is a lack of new rental properties in Derby coming on the market, in fact
according to the Office of National Statistics, there are only 81 new rental
properties are coming to the market each month in Derby but the population of
Derby is rising by 225 people a month – something will have to give soon! This
is compounded by the fact a number of landlords are looking to sell their
rental properties in the coming months, as the property market in Derby has
improved. This further compounded as tenants in existing rental properties
appear to be staying in properties for longer periods of time.<o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6fAQtsq_Dx0V0HQINj9wCKPk7xKJLNO04GyvpfCLSFwy-ryi86loPXIrLESLpprt9q33I-3ce86VgeubMsXObs0ynJBbKxV0yJLot6JqeND5XtBLaoUMr13tz2UFjBt4Jh2LTMJoFIA2y/s1600/monopoly.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6fAQtsq_Dx0V0HQINj9wCKPk7xKJLNO04GyvpfCLSFwy-ryi86loPXIrLESLpprt9q33I-3ce86VgeubMsXObs0ynJBbKxV0yJLot6JqeND5XtBLaoUMr13tz2UFjBt4Jh2LTMJoFIA2y/s1600/monopoly.jpg" height="199" width="320" /></a></div>
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Looking at the rents charged
in Derby, historic evidence in the UK suggests private market rents have moved
in line with general inflation. Government figures only go back as far as the
year 2000, but looking at other countries with similar housing markets (America,
Australia, Ireland and Holland) the fact is rents paid by tenants tend to rise
in line or just ahead of inflation.</div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
As short term wage growth in
Derby has eased off recently, rising by only 1.3% in the last 12 months, taking
average salaries in Derby to £26,241p.a, with the tax breaks announced by The
Chancellor in the Budget, I believe, even though rents have kept pace with
inflation in the past, renting as an option has become more affordable, and is
increasingly seen as a lifestyle choice. With returning economic growth and
expected increases in the rate of growth of wages, above inflation rental
growth could rise.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
If you want a chat about the local Derby property market, pop in for a coffee or email me via the link below!<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-12898012140631713832015-03-19T12:38:00.000+00:002015-03-24T12:40:13.166+00:00Your Pension could now buy a Buy to Let property!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiORQ7CCmxOwG0PgxpCmf3EWxwQ6qc3KmdrX_MJZWYYuTPV7AqeJf0-Xerul6RZyKZANKmCugQ0GnwHQ6evYU9ZZAMLlbsHVkeDwwtVjVA3TppB9qAY67hNiVmSWXhDzqxFlCK7zrbayNpg/s1600/DPB5.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiORQ7CCmxOwG0PgxpCmf3EWxwQ6qc3KmdrX_MJZWYYuTPV7AqeJf0-Xerul6RZyKZANKmCugQ0GnwHQ6evYU9ZZAMLlbsHVkeDwwtVjVA3TppB9qAY67hNiVmSWXhDzqxFlCK7zrbayNpg/s1600/DPB5.jpg" height="177" width="320" /></a></div>
<div class="MsoNormal">
<span style="text-align: justify;">In a recent article, I
mentioned that pension rules are changing this April. It certainly created a
few emails, with people asking questions about it. Therefore, this week, I want
to look a little deeper into the subject of your pension and the Derby property
market.</span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
George Osborne, in last
years’ Budget, announced pension reforms that come into effect this April,
which will give people with pensions unprecedented access to their pension pot
and the freedom to look for alternatives. In a nutshell, after the 6<sup>th</sup>
of April, anyone aged over 55 will be allowed to withdraw all or part of their
pension pot and spend it as they wish. Until now, you were allowed to take out
a quarter of it and were forced to buy an annuity policy with the rest.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, my readers always
know that I like to tell it ‘as it is’. There are always two sides to a story,
good and bad. Let me tell you the bad news first. There are some hefty tax
implications by taking money from your pension pot. As before, as per the old
rules, the first 25% can still be withdrawn from the pension pot tax free but,
here is the sting in the tail, if you take more than a quarter of your pot
(25%), anything above that initial 25% level will be taxed as income. So
if you took the whole lot out, the first 25% will be tax free but the remaining
75% will be taxed at your income tax rate of 20%, 40% (or even 45% if you earn
over £150,000 a year).<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
..and now the good news!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Under the old scheme, if you
bought an annuity, when you died your annuity normally died as well. You would
have no asset to pass on to your family. Also, the returns from pensions are
awful at the moment. The best rates according to Hargreaves and Lansdown (big
wigs in the City) state if you were 55 years old, the best rate you would get
on your annuity pension would be 4.4% fixed for life (so it would never go up)
or 2.2% but the payment would go up with inflation. The sort of rates (also known as yields in
the property investing game) being achieved in Derby are in the order of 4% to
7%, and they tend to rise in line with wages.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRL8Tm0lsPkfpA1fEEzZis8q49T9BF-OWQB0W7o2Jp9BlKc2z7TQWvui1BgvBE1DOmvTNKaTnos6yh5Jrmzz5s6dmeRywZQMNjjR0W8mOsq1in5AXEw6omoqvzTJdlwskx9PuJvZvEBZRD/s1600/uk%20buy-to-let%20page.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRL8Tm0lsPkfpA1fEEzZis8q49T9BF-OWQB0W7o2Jp9BlKc2z7TQWvui1BgvBE1DOmvTNKaTnos6yh5Jrmzz5s6dmeRywZQMNjjR0W8mOsq1in5AXEw6omoqvzTJdlwskx9PuJvZvEBZRD/s1600/uk%2520buy-to-let%2520page.jpg" height="177" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The other aspect of property
investment is how the fact property values have risen consistently over the
last 50 years. According to the Office
of National Statistics, the life expectancy of a 65 year old male in Derby is
18.4 years (its only 16.9 years in Nottingham). If we roll the clock back 18
years 4 months to November 1996, property values in Derby have risen by 153.1%
to today .. you wouldn’t have had that with your pension! But
this is the biggest win, even by taking a hit in income tax now, by buying a property, you buy an asset that
you can pass on to your family when you die.... (or the cats home if they
aren’t nice to you!).<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNoSpacing" style="text-align: justify;">
So where next? It totally
depends which strategy you are going to look at, one strategy is to look to
achieve relatively small rental returns (ie low yields) in an up market area
which has decent capital growth or, alternatively, another strategy is to buy properties
in not so good areas known to produce a high returns (ie high yields) but low
capital growth (ie how much the value of the property goes up). Now, I am not
financial adviser, so cannot offer financial advice on what the best thing for
you with your pension is. However, I can share my knowledge and experience of
the Derby property market, what to buy, what not to buy and where to buy etc
etc. </div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
My thoughts on the Derby Property
market can always be found on the Derby Property Blog! <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com4tag:blogger.com,1999:blog-2874592052702338545.post-18431567971223129552015-03-12T12:33:00.000+00:002015-03-24T12:34:40.646+00:00Is home ownership inevitable in Derby?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVMxk2J7KJPq8lWk0ICiZYcQq52m7qJjVDUorETKAobriY1qDXDw6lyjdlFIykPq3iLbs1zSA5tyxYR-LORcq1bUCUHLoOernFWMIyeRkE8m70eayeK5XDng1mSyo2znaToE7qGZ_ziZUb/s1600/DPB3.jpg" height="177" width="320" /></a></div>
<div class="MsoNoSpacing">
<b>“You have to rent
where you want to live, or buy where you don’t want to live.”</b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
After the end of the Second
World War, just over a quarter of the UK population owned their own home, the
rest rented from private landlords or the local Council. If someone told you in
the 1970’s and 1980’s that they rented, they were considered a second class
citizen. Everyone wanted to own their own home.. it was the done thing. We
think that home ownership will inevitably happen, but it won't.<o:p></o:p></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It all changed in the 1970’s,
when two things happened. Firstly, the number of people who owned their own
home broke through the 50% barrier in 1971 and by 1981 it was at 57%. Tied in
with that, the average house prices in Derby were doubling at one point every
four years in the 1970’s so property and profit started to feed off each other.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
To put that growth in context,
if we were to look at the last 85 years in Derby, in 1930, the average Derby
property was worth £361. It took 16 years for Derby property values to double,
rising to £893 by 1946. Another 15 years and the average Derby property doubled
again to £1,696 in 1961. The next doubling only took 10 years, as by 1971 the
average Derby property had reached £3,449 in value.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It was, as mentioned above,
the 1970’s when things really took off, as by 1975 (only four years later) they
had doubled to £7,217 and they doubled again to £14,418 by 1980. It took
another eight years for values to double again, as an average Derby property
reached £30,221 in 1988. Twelve years had to pass until the doubled again in
2000 (£62,181) and just six years to double again by 2006, when they reached
£125,111. Where are we today? The
average property value in Derby currently stands at £174,700.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG3JVPSFD0Q1ETmbNQizO1PCNljxzwOo6M7h4Icv90fB_4OgUVBahY7bSegrBR7U7op0y5tFG38wOTC9fev89Oro1pOOUgpchLks6l-8ljZHLkjKS7vGtfar9JTkqMPbPmd2t7QoZonkB9/s1600/maggie.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG3JVPSFD0Q1ETmbNQizO1PCNljxzwOo6M7h4Icv90fB_4OgUVBahY7bSegrBR7U7op0y5tFG38wOTC9fev89Oro1pOOUgpchLks6l-8ljZHLkjKS7vGtfar9JTkqMPbPmd2t7QoZonkB9/s1600/maggie.png" height="192" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
We could blame Maggie Thatcher
for making home ownership the ultimate goal, but what we now need to consider
is that the country is turning on its head and we need to, as a Country, love renting again. Some blame the banks, but
obtaining a 95% mortgage is hard work, but nowhere near impossible. A typical
Derby first time buyer would only need to save £5,000 for a deposit and fees
and they could buy a very decent Victorian two up two down in <span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Rose Hill</span> in Derby, and
it would be over £100 cheaper a month in mortgage payments than renting.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
People might say on the
surveys they want to buy, when it comes down to it. If you have been living in
a lovely three bed semi in <span style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Littleover</span> for £700 per month, but the bank will only
lend you enough to buy a terraced house Rose Hill, and don’t get me wrong, Rose
Hill has really pulled its socks up over the last ten years, but, some would
say, it isn’t Littleover, is it? <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
What would you do? Look again
at the quote at the top... “You have to rent where you want to live, or buy where you don’t want
to live.”<b><i><o:p></o:p></i></b></div>
<br /> With tenant demand only going in one direction, it is probably why more and more people are getting into buy to let in Derby. With the new rules on pensions and the ability to use them to buy residential rental properties from April onwards, this could be the time for you to buy a rental property. You must take advice on your pension from a Independent Financial Advisor (there are plenty in Derby) and you must take advice from people who know what to buy (and not to buy) in Derby to ensure you get the best from your investment. One place for such advice is the Derby Property Blog!<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
<div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-91431495233263569962015-03-05T15:44:00.002+00:002015-03-05T15:44:57.043+00:00Are Derby landlords on a par with politicians and traffic rangers!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSNILoTvdHp6GKMTdS6NlRQ366wyFxZUEazbeH-dsRfjkCNmfiC9m7RGwQSR9WGlxN9aegjwZ95k2C6mtXEGuE9Y2czcGXfKdkPhhO3-Wrh-7Md3Px0Nq8wtxn-6ZDg3tFOFtkvXOVh7UT/s1600/DPB3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSNILoTvdHp6GKMTdS6NlRQ366wyFxZUEazbeH-dsRfjkCNmfiC9m7RGwQSR9WGlxN9aegjwZ95k2C6mtXEGuE9Y2czcGXfKdkPhhO3-Wrh-7Md3Px0Nq8wtxn-6ZDg3tFOFtkvXOVh7UT/s1600/DPB3.jpg" height="177" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
At the time of the last census
in 2011, there are 3,401,675 properties in England that were privately rented,
of which it is estimated, were owned by over 1.25 million private landlords. The
rapid growth of buy-to-let is hugely controversial, especially as only ten
years before that, there were only 1,798,864 properties under private renting
in England. Buy to let landlords have been held responsible for forcing up property
prices and preventing our younger generations from being able to buy. There is
also growing resentment toward the billions of pounds in tax relief (estimated
to be nearly £10 billion) landlords claim on their mortgage interest tax relief
not available to homeowners. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
They may be asset rich thanks
to recently rising property values, but let us not make the landlords the warlocks
they could easily be called! They are not quite on a par with the traffic rangers who raise around £1.4 million a year for the Council! Despite all these benefits enjoyed by private
landlords, let us not forget the good they have done, especially in Derby.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWyFE1JvvdP68J_E7n6E2wSAlf2zHOAdMutLHZf0rEallbc3zu5toAsl1E2MPGNRywraafeWlllkDpnDQtUILidz60_zYQLnfC4LciBk2KOpfhArJrDLxWyYFc9YNKDmOihYoJgY55-ctO/s1600/9362958-large.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWyFE1JvvdP68J_E7n6E2wSAlf2zHOAdMutLHZf0rEallbc3zu5toAsl1E2MPGNRywraafeWlllkDpnDQtUILidz60_zYQLnfC4LciBk2KOpfhArJrDLxWyYFc9YNKDmOihYoJgY55-ctO/s1600/9362958-large.jpg" height="214" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Property values today in Derby
are still 11.5% below the 2007 property boom levels (2007 being the peak of
last property boom before everything dropped in 2008/9), yet inflation has
risen by 26% in the same time frame, so in real terms, properties today are
37.5% <b>CHEAPER</b> than they were in
2007. Just think how low they would be without landlords buying all those
rental properties in the city. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Interest rates are at an all
time low and first time buyers only need to save a £6,000 deposit to secure a
lovely 2 bed semi in Chellaston or Oakwood with a 95% mortgage. Forget what the
papers say, first time buyers <b>can</b>
borrow money on a 95% mortgage and, nine times out of ten, it’s cheaper to buy
than rent. So why aren’t people buying?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The number of people choosing
to rent, either for lifestyle or economic reasons, has grown over the last 15
years. I also believe they will continue to grow for some time to come, as does
every report on the subject. In fact I would go as far to predict the number of
rental properties in Derby will have risen from the 15,943 properties recorded in
2011 to 21,800 by 2021. Sound fanciful? Well in 2001, there were only 6,739
privately rented properties in Derby.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It is a fact that we as a
Country are more and more turning into a European model when it comes to
homeownership, where the norm is renting for the first ten years, as opposed to
the norm from the 1960’s to 1990’s, where first time buyers were encouraged to
buy as soon as they left school and got a job.<o:p></o:p></div>
<br /> Tenants, in particular, will also feel the benefit from potential changes in the market. The likelihood of interest rate increases in late 2015, existing economic conditions, combined with the uncertainty of new Government manifestos following the General Election in May will result in low demand for people to buy yet also put a dampening effect on increases in rent. As long as landlords buy the right sort of property, that allows for a reasonable yield, decent capital growth, everyone will be a winner. If want a chat about what would make the best sort a property that would offer that in Derby, then please email me on simonj@professionalproperties.co.uk.Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-18129841575240915832015-02-28T09:54:00.000+00:002015-02-28T09:54:23.949+00:00Are landlords to blame for Derby's rising house prices? <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNFWxFGtiP5p9z1NHbhfaTU-B3bD3jJ4evYJxCY7wX8B59rUc-CKK__c3L5OT93Tum7V8ZSe9kX7k1X2qG7J6Zhic6OQGue8zbhtdpVn9Kd7c6XfYCNhaZNV1nLlZqez41OkB2fy90V6Cd/s1600/DPB2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNFWxFGtiP5p9z1NHbhfaTU-B3bD3jJ4evYJxCY7wX8B59rUc-CKK__c3L5OT93Tum7V8ZSe9kX7k1X2qG7J6Zhic6OQGue8zbhtdpVn9Kd7c6XfYCNhaZNV1nLlZqez41OkB2fy90V6Cd/s1600/DPB2.jpg" height="221" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
East Midlands property asking
prices jumped by more than £4,000 to £177,100 in February according to
Rightmove, an increase of 2.3% from January and 4.7% higher than a year ago.
After the traditionally quiet months of January and February, the property
market starts to heat up, but talking to some Derby Estate Agents, they are
reporting their lowest ever stocks of quality property for sale. However,
asking prices have <b><u>no</u></b>
relation to what property sells for! With property, the definition of price is
what someone is prepared to pay, not what the agent thinks it’s worth!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So, is the issue a lack of
supply?<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Putting aside Derby’s continual
housing supply shortage, (we only built 9,866 properties in the last decade but
the population of Derby grew by 27,044), this is now, according to some people,
being exaggerated by an increase in homes being owned by buy to let investors,
who tend to be buying a property as part of a long term pension plan and are
more likely to keep it for longer than an owner occupier would. I have also
seen unwillingness among homeowners looking to move, to put their <b>o</b>wn property on the market as they can find
few suitable properties to make it worth their while going through the whole
moving process.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
What I would say to that is
that I believe this is the new norm in the Derby property market, and is the
consequence of over 35 years of not enough homes being built to meet the escalating
growth in household numbers, resulting in a lack of quality homes for sale in
many popular areas of Derby.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
When one looks at the historic
data, in March 2008, there were 4084 properties on the market in Derby compared
to today’s 1579. Should we be worried?
Well in March 2010, there were only 1574 properties for sale in Derby but
seven months later in October 2010, this had jumped to 2609 properties, for it
to drop to 2176 properties in January 2011. The number of properties on the
market is a cyclical thing in Derby, it always has been and always will be. As
we go into the Spring of 2015, the number of new properties coming onto the
market will increase ... just as the daffodils will flower.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTeFa5bP_9KfhaFgrpbDocqSezcyKTOYOlTf5D1q8t3yC8u_t5asF_8aaZK17LtkZC3s-LezgljaClcM6xHFQHE4pNQ5FgYJobsxzWckzyP5a8pmFVFnESOkumyElAMC-hlk9pDBfIrvQ0/s1600/supply-and-demand.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTeFa5bP_9KfhaFgrpbDocqSezcyKTOYOlTf5D1q8t3yC8u_t5asF_8aaZK17LtkZC3s-LezgljaClcM6xHFQHE4pNQ5FgYJobsxzWckzyP5a8pmFVFnESOkumyElAMC-hlk9pDBfIrvQ0/s1600/supply-and-demand.jpg" height="166" width="400" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So are landlords to blame? Well,
on one side of the coin, yes they are. If they buy a property to rent out, that
means someone can’t buy it to live in. However, it doesn’t matter if someone
wants to live in a property if they can’t afford the deposit and upkeep.. and
the youngsters of Derby still need a roof over their head. So on the other side
of the coin, if the Council aren’t building any properties and people can’t
afford the large deposit for the mortgage, then Derby landlords have stepped in
and bought property to rent out to them. Derby landlords have bought 9,204 properties
over the last decade (investing approximately £1.6bn buying those Derby
properties) and now house 37,828 Derby people in 15,943 Derby properties. Derby
tenants are in fact getting a good deal as well, as average rents in Derby are 4.5%
below they were seven years ago. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
That sounds like a win-win
situation for everyone to me. So, we should stop pointing the finger at
landlords and start building more properties in Derby.. that is the only
answer!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
In the meantime, the demand from Derby tenants for Derby property is only set to rise over the coming years. If you want some advice and opinion on where (or not) to buy, please email me or call me on the number below!<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-64849912865447055422015-02-20T17:47:00.002+00:002015-02-20T17:47:43.582+00:00A Derbyshire man’s home ..is his semi... or terraced... or his bungalow…<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD6LhHeNQtgRJDETWwK0pLs2jPegVDu-Wt3TrtozqcVlFz_n_4STGKJD6AWNhP5-Hl1bA1J2mNk_C7LwWqLio2-XR9K_OXC_xetWwGocKz4Lh7ZVGIdjIuyoubevnZubA2mVK3d8QZThOU/s1600/DPB4.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjD6LhHeNQtgRJDETWwK0pLs2jPegVDu-Wt3TrtozqcVlFz_n_4STGKJD6AWNhP5-Hl1bA1J2mNk_C7LwWqLio2-XR9K_OXC_xetWwGocKz4Lh7ZVGIdjIuyoubevnZubA2mVK3d8QZThOU/s1600/DPB4.jpg" height="221" width="400" /></a></div>
<span style="text-align: justify;">Ok, a slight turn of phrase
there on the classic, an Englishman’s home is his castle but when it comes to
the UK, the Brit’s are still a nation of
homeowners - although wasn’t it Napoleon who thought we were all shop keepers?!</span><br />
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It is interesting to note that
up until the mid to late 1960’s, more people rented their home, albeit mostly
from the local council, than owned their own property. In fact, I was surprised
to read that in 1921, over 75% of homes in England and Wales were privately
rented with the remaining 25% being owner occupied.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
It was only after the Second
World War, when the Beatles were rocking, that people started to buy instead of
rent.. but instead of owning our property outright, we borrowed money from
banks and building society’s to buy them and the roots of the growth of the
private rental sector can be drawn back to the late 1970’s early 1980’s, when
the council houses began to be sold off under the right to buy scheme. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Even though 63,979 households
in Derby were owner occupied in 2001 and that number had only dropped to 62,765
households by 2011, the percentage of homeowner properties in Derby dropped
drastically from 69.23% to 61.37%. Why, because whilst an additional 9,866
properties were built in Derby between 2001 and 2011, a lot of them were bought
as buy to let investments, thus more than doubling the number of private rental
properties in Derby. In fact, the number of properties in Derby that were
privately rented, jumped from 7,464 in 2001 to 17,163 in 2011!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="MsoNoSpacing" style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9yhR3pA6pF8ng7NPCHGIxIUtKfyFeqtsbwkRvjhEuHBy-tJAdr7olX_Tug5Q3wohzbxNXA5XzZQweJ1NTIt5QxXOA3Q0qSmh8SnIl_fcb50KnoTrO1XC7unQMqfENwJ2piEQa8DGRWTMN/s1600/sPEND+OR+sAVE.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9yhR3pA6pF8ng7NPCHGIxIUtKfyFeqtsbwkRvjhEuHBy-tJAdr7olX_Tug5Q3wohzbxNXA5XzZQweJ1NTIt5QxXOA3Q0qSmh8SnIl_fcb50KnoTrO1XC7unQMqfENwJ2piEQa8DGRWTMN/s1600/sPEND+OR+sAVE.png" height="176" width="320" /></a>With stagnation in the number
of people who own their home in Derby and no more council houses being built,
this is increasing the number of people looking to renting, as everyone needs a
roof over their head. With the Derby City Council house waiting lists being in
the 5 to 10 year range for a decent property in a decent location, it shouldn’t
be forgotten that it is Derby landlords who house tenants waiting for a council
house. Derby landlords do not receive any subsidies from HMRC and income tax is
paid on rent paid by the tenant combined these reduce the cost on the tax
payer. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
However, it’s not all doom and
gloom in Derby, as we have noticed more and more of the younger generation are renting,
largely because they can‘t afford to buy - raising a deposit being the sticking
point for most. Also, a high percentage of the expansion in private renting is
due to those who need and want temporary accommodation. There are even a few
landlords who rent their own Derby property out for the short term, for ease,
and not necessarily purely for profit.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNoSpacing" style="text-align: justify;">
Therefore, with every report
stating the rental market will continue to grow throughout the rest of this
decade, with high demand and limited supply in the Derby, if you are
considering buying a property for investment in the near future in Derby, I am
always happy to give you my considered opinion on which property to buy (or not
as the case may be) to give you what you want from your investment. If you are
a landlord, new or old, I am certainly more than happy for you to pick up the
phone or visit me at our office on St. James' Street!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com1tag:blogger.com,1999:blog-2874592052702338545.post-79078046834206692182015-02-12T18:43:00.004+00:002015-02-12T18:43:54.749+00:00It pays to plan your property investment in Derby<div class="MsoNoSpacing" style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjagV-qgNF-qonj4GzFaai0oKzhQ-kKmTORo2nU8v59nvmQKrLd7EbnhIOW2quWpXDZvxiIXUhOHBE6YFFPw1X3BRi7RDfP0tzqfVpJXShu0tBSgfFJHdA9_gv7Qk7kX95xgIffiIQfDuTX/s1600/DPB2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjagV-qgNF-qonj4GzFaai0oKzhQ-kKmTORo2nU8v59nvmQKrLd7EbnhIOW2quWpXDZvxiIXUhOHBE6YFFPw1X3BRi7RDfP0tzqfVpJXShu0tBSgfFJHdA9_gv7Qk7kX95xgIffiIQfDuTX/s1600/DPB2.jpg" height="221" width="400" /></a>The buy to let sector in
Derby, in fact the whole of the East Midlands buy to let sector is doing very
well at the moment, but it can be a minefield. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
I could regale you with many
stories where investors have got it tremendously wrong in Derby, like some
modern apartments on Drage Street in Chester Green, that were sold for an eye
watering £168,000 in 2005, only to be selling today for £95,000/£97,000, a drop
of over 42%. It is interesting to note that at that time in 2005 for £165,000,
you could have bought a lovely 3 bed bay fronted semi in Littleover or a four
bed detached house in Sunnyhill. A two bed apartment for the same price as a
decent semi or nice modern detached house, doesn’t in hindsight, quite stack
up. The thing is, I still see mistakes being made on a day by day basis in
Derby. If you make even a small mistake, it could still prove to be very
costly.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So what should you buy in
Derby? One option is Houses of Multiple Occupation (HMO’s). While they can be
profitable, chiefly in the student market with Derby University students, they
can make things much more complex and costly, with the need for HMO licences
etc. If you look back at some of my previous articles listed on ‘The Derby
Property Blog’, you will see a lot of interesting facts on which types of
properties let well, as well as sell well!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Mortgage rates on buy to let
are really low at the moment and for the right property and person you can get
rates below 3.9% if you put down a decent deposit of 25%, but the best rates
are for deposits of 40% deposit and, as I type this, you can get a 5 year fixed
rate buy to let mortgage from the Post Office for 3.65%. Also, the deposit will
ensure you have plenty of equity in the property, if the property market
stagnates in the future. The important thing to remember is the amount you can
borrow is driven by the rental income, so it is vital you can identify a
property with a decent yield that lets easily.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9IxjVcWnrdpHQSa2wiX5Jx7wCDzc4Uzs7C8GfZ1vEwScQ3Is85bGy9CJ0VWtVblIDvCAc2V5HUiiL1BrCBG8yW2I0bUIZhFu9gfVh1iZyy7pfi0pAVw6A4lXSLM6x7FLdslo7iyOhpSoU/s1600/iStock_000023751671Small.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9IxjVcWnrdpHQSa2wiX5Jx7wCDzc4Uzs7C8GfZ1vEwScQ3Is85bGy9CJ0VWtVblIDvCAc2V5HUiiL1BrCBG8yW2I0bUIZhFu9gfVh1iZyy7pfi0pAVw6A4lXSLM6x7FLdslo7iyOhpSoU/s1600/iStock_000023751671Small.jpg" height="211" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Finally though, if are
investing so much time and money in building wealth for you and your family, it
is equally important for you to identify ways to protect it. Do not forget, if
you spend years building a successful property empire in Derby, when you pop
your clogs, your family could face an inheritance tax bill of 40 %, which they
would have to pay within six months of the death. In a buoyant market, selling
in six months is not an issue, but what if the market was like it was in Derby
between 2008 and 2012, when things took seasons to sell, not weeks. Quite apart
from losing nearly half of the assets you built for your family to the tax man,
if they had to sell some of your portfolio, possibly at a discount because the taxman wanted
his money so quick, it might be wise to consider some life insurance that will
offer protection against inheritance tax. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNoSpacing" style="text-align: justify;">
There are plenty of good
advisors in Derby that can help you with the mortgages and life insurance. We
aren’t one, because we are a letting agent, but what we can help with is
choosing the right Derby property to
buy. It’s in our interest to do so, because if we offer the best advice and
opinion, without any conflict of trying to sell you anything because we aren’t
estate agents so have nothing to sell you, you might consider, although there
is no obligation, to trust us to manage the property.</div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="mailto:simonj@professionalproperties.co.uk" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju6AU42_2aQc5YWlcKcUwn9TWoPxPzKACYwm3JyoMUoAWTJe3Nf1awTbbUf2ZkuABzmeyRHBVRWHoDVmVVeKdbKDAeotoD-vlChxF8scy5sVBHtC8PtmpfMH5o60t83GgxrU4zEbx2mEie/s1600/email.png" height="53" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizDMMTAgGOB4_wYKRh5VSpnOIJ-y9qCPBIPeREBk8GbZCOPmypDiJA8OS7Lb89CucoSew-HYpgfweumqU2oUHujO9rEEfHe6fkNIslcbM21kddKIQgviTMwxmE16Rf2MsQ_LtgxI3KUK6v/s1600/call+me.png" height="52" width="400" /></a></div>
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<o:p></o:p>Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com1tag:blogger.com,1999:blog-2874592052702338545.post-30824521254527101322015-02-06T17:43:00.003+00:002015-02-06T17:43:52.781+00:00Which value of properties are actually selling in Derby?<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s1600/DPB1.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRtmyMdLnqWntPi9-OgOfx-MdwRwDEniZhYVC2lOFhZESo3m3UBz46eUvN_WhtS48TC40IC_UnZnQZGBQC8cNayjcrNueDyOK17zlJvEQj63-Lo-D5v_iewwavTqRDqLazFR2hyphenhyphenT7V_v9l/s1600/DPB1.jpg" height="177" width="320" /></a></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Prices up, prices down, prices
stable… the newspapers are full of good news, bad news and indifferent news
about the Brit’s favourite subject after the weather... the property market. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The thing is, the UK does not
have one housing market. Instead, it is a patchwork of mini property markets
all performing in a different way. At
one end of scale is London, which has seen average prices grow in the last
twelve months by a shade under 19% (and again that is an average because some
Borough’s in London have risen by 26%) whilst in the land of daffodils, by
contrast, Wales, only saw a 2% increase in property values, although in the
Merthyr Valleys they dropped by over 11%!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Well, we can’t ignore the rest
of the UK, and we can’t forget that the Chancellor’s Stamp Duty reforms have
polarised the London property markets above £1,000,000 because at the top end
of the market, punitive Stamp Duty charges will dampen demand further. Whilst
the Bank of England warned of the growing London property price bubble in the Spring
of 2014, even talk of a recovery in some areas was premature. In 2015,
irrespective of where you are in the UK, one story will unite the patchwork quilt
of markets – really slow property value growth.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
So, what about our own patch
in this patchwork market, Derby? Well, we haven’t had the December figures from
the Land Registry yet but the last few months’ activity and prices achieved would
suggest neither house price growth nor drops.
In fact, most sellers are buyers anyway, so if you need to take less for
yours, you won’t have to pay as much for the one you want to buy ... and that
is good news for everyone as most move up market when they move. This is also
great news for landlord investors, as they can bag a bargain as well!<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtQLypOFfRcsFR-yyhJ7TVJ0AJpB35tu5QHfOJWLYxgzl868c9hmlm3vbCGlCEqNg1bUk47PTTBsMNLG7qjUzwqtfEmTQwIC3k7hrXabIGp-tqFHL-GCmcgWqZEV95_zGuRBZvrRf8q6my/s1600/PipResearch.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtQLypOFfRcsFR-yyhJ7TVJ0AJpB35tu5QHfOJWLYxgzl868c9hmlm3vbCGlCEqNg1bUk47PTTBsMNLG7qjUzwqtfEmTQwIC3k7hrXabIGp-tqFHL-GCmcgWqZEV95_zGuRBZvrRf8q6my/s1600/PipResearch.png" height="192" width="320" /></a>The question you should be
asking though is not only is what happening to property prices, but which price
band exactly is selling? I like to keep an eye on the property market in Derby
on a daily basis because it enables me to give the best advice and opinion on
what (or not ) to buy in Derby.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
Over the last two months (56
days to be precise), 231 properties with asking prices under £100k have come
onto the market in Derby and 12.9% of them (30 properties have a buyer and sold
stc. Between £100k and £150k, of the 284 properties that come on to the market,
21.8% of them (62 properties) have a buyer. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The £150k to £200k price range
has seen 173 properties come on to the market, and impressive 24.8% have a
buyer (43 properties). <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The more expensive £200k to
£300k range has seen 35 of the 158 properties that came on to the market find
buyers (22.1%) but the £300k+ range has been slower, with only 9.8% (8
properties) of the 81 that have come on to the market, find buyers.<o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
<div class="MsoNoSpacing" style="text-align: justify;">
The next three months’ activity will be crucial in understanding which
way the market will go this year and I honestly believe we will not see
any house price growth or drops this side of the election. Election or no
election, people will always need a roof over their head and that is why the
property market has rode the storms of oil crisis in the 1970’s, the 1980’s
depression, Black Monday in the 1990’s, and latterly, the Credit Crunch
together with the various house price crashes of 1973, 1987 and 2008. <o:p></o:p></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<br /></div>
And why? Because Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash.... there is always a silver lining when it comes to the property market!<div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0tag:blogger.com,1999:blog-2874592052702338545.post-63141340157234062032015-01-28T12:12:00.001+00:002015-01-28T12:12:52.180+00:00There is Apathy in the Derby Property market..<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyBOkKEY4P_BXJ1cBaf72J_N96KtW_s6Sj7TUgRTUdMA7Ah4Tz0-E1uQiPaoNBwUPILfjm84wvTJAcncEjb2RUFf81_3PLW2YoEXqmBZJvajeg-BekowrYMd1lFyj_rf5yIXXJyDDwk9Py/s1600/Pip+Moving.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyBOkKEY4P_BXJ1cBaf72J_N96KtW_s6Sj7TUgRTUdMA7Ah4Tz0-E1uQiPaoNBwUPILfjm84wvTJAcncEjb2RUFf81_3PLW2YoEXqmBZJvajeg-BekowrYMd1lFyj_rf5yIXXJyDDwk9Py/s1600/Pip+Moving.jpg" height="160" width="320" /></a></div>
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A state of indifference has
hit the Derby housing market as sellers
await the outcome of the general election and stricter mortgage regulation
suppresses buyer demand. Now, I have contacted both the BBC and ITV to see if I
can get spot on the live TV election debates and give all parties a bit of
advice regarding the Private Rental Sector. As yet, I have not had a response… <o:p></o:p></div>
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This feeling of apathy is
mirrored around the UK as Rightmove reported the number of homes registered for
sale per estate agent fell to its lowest level for five years in December, with
available stock 10 per cent lower than in the same month a year earlier.<o:p></o:p></div>
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Looking at Derby, in the
summer of 2014, each estate agent in Derby had on average 44 properties on its
books (as there were a total of 2,289 properties up for sale in Derby at the
peak in the Summer of 2014). Our research shows that number has plummeted to 38
per agent in December and looking at first three weeks of January, this number
will lower by the month’s end. While the
lack of new properties coming onto the market in the later months of 2014 in
Derby pushed asking prices up slightly from November to December, traditionally
a quiet season for the housing market, property sellers will need to work hard
in 2015 to complete a sale.<o:p></o:p></div>
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The length of time a property
takes to sell has increased over the last few months. Two bedroom properties in
Derby are now taking 86 days to sell, three bedroom 94 days, four bedrooms 92
days, but here an interesting figure, one beds are taking on average 169 days
to find a buyer.<o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj12m-Ub01CCsmsT-SZGJNIAbnKoOjmx9M0guwPII4P_SWP_PZIqnECDSzAaRo9qxgir7Vk8LsDk4Hr_1V-QDQ8BT96o1DjjGZYzy1JjxcsBBgXZNM8Pe842iKtl44AtvH7cWv7g7FahrSi/s1600/DPB1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj12m-Ub01CCsmsT-SZGJNIAbnKoOjmx9M0guwPII4P_SWP_PZIqnECDSzAaRo9qxgir7Vk8LsDk4Hr_1V-QDQ8BT96o1DjjGZYzy1JjxcsBBgXZNM8Pe842iKtl44AtvH7cWv7g7FahrSi/s1600/DPB1.jpg" height="177" width="320" /></a></div>
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2015 will be the year of the
selective mover. With only 986 brand new properties a year being built in Derby
since the turn of the Millennium, this woefully low and insufficient number of
new buildings in the City over the past few decades and a systemic change in
the type of properties homeowners want (with families splitting etc so we have
too many larger houses and not enough smaller ones), buyers are becoming
dissatisfied with, and therefore dismissive of what is up for sale.<o:p></o:p></div>
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In my opinion, the heat has
gone out of the Derby property market and I anticipate a moderate reduction
from the high transaction volumes seen in 2014. That might mean Derby landlords
could bag a bargain during this period of uncertainty, especially if the
financial markets do not like the election outcome. Markets and buyers do not
like uncertainty, but savvy buy-to-let landlords know that property investment is
a long term game, and irrespective of short term apathy, a reduction in the
quality and quantity of stock for homeowners to buy or the election, if people
don’t buy property, they rent. <o:p></o:p></div>
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Derby City Council aren’t
building anymore properties, the council house waiting list is decades, not
years for the better type of property.. the only other way to get a roof over
your head is to rent a property! Good
old Bricks and Mortar!<o:p></o:p></div>
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Therefore, if you are considering buying a property for investment in the near future, as I don't sell property, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment.<div>
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Anonymoushttp://www.blogger.com/profile/10751410377623744956noreply@blogger.com0