Falling Down
Reading all the current property trends online, landlords and homeowners alike are holding back on selling, buying and renting due to waiting for the outcome of the election or Brexit negotiations before doing anything! And as an estate agent I have visions of the 1993 movie starring Michael Douglas 'Falling Down' as the general uncertainty and lack of action impacts the market.
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| "Falling down is an accident, staying down is a choice" |
Don't wait! According to Robert Garner, Nationwide's Chief Economist 'History suggests that an upcoming election is not the foremost in either a buyer or a sellers mind when buying or selling a property. Trends tend to remain consistent before during and after general elections'
Although according to landlordnews.co.uk UK house prices have fallen for the 3rd consecutive month the first time since 2009 and house price growth slid to 2.1% the weakest in nearly 4 years.
Mr Garner adds 'Broader economic trends appear to dominate any immediate election-related impacts. It is too early to conclude whether the slow down in house price growth is merely a blip, a reflection of the impact of the squeeze on household budgets . This, together with mounting housing affordability pressures, is likely to exert drag on activity and house price in the quarters ahead'
As an agent I would suggest now is the time whilst the competition wait!
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| Part of Bailey and Staples Recommended Trades |
Rental trends
Latest Rental Index from Homelet
Generally across the UK rental prices on new tenancies have reduced by 0.3% on the same month of 2016 to £901 per month. London has reported a 3% reduction on rents since May 2016 to an average £1502 per month. Luckily North West hasn't followed this trend with rents rising by 2.2% on May 2016 from £664 to £679 per calendar month. Source Landlordnews.co.uk
Propertywire.com named Liverpool as the top spot for buy-to-let rental yields in the UK and stated that 'Landlords have been achieving an 8% rental yield once mortgage costs are taken into account'. they also go on to say 'As housing and mortgage costs are the biggest influence on yields in the current market, the city takes the top spot as it has a combination of low average house prices at just £122,283 and strong rents at £1,021 per month.
Location is everything when considering a buy-to-let to ensure optimisation of rental yields and long term investment for capitol gain. Strong rental demand is the key and this tends to be better in larger cities and university towns. With restrictions on tax relief on mortgage interest, mortgage costs need to be kept low. Lower mortgage rates are available to landlords and an independent mortgage advisor may be able to offer products to help with the most affordable available option. Sean Church, director of Finance
We have access to excellent independent mortgage and insurance brokers available to suit your needs and ensure your monthly outgoings are kept to a minimum, please ask for more details.
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| Part of Bailey and Staples Recommended Trades |
Wirral buy-to-let market
With the publication of Liverpool being named as the top spot this will filter down to the Wirral area as we too have some of the most affordable housing and the rental market is still strong in the area. With regular bus links to the City there's no reason why this positive headline won't directly influence the popularity of this smaller slightly less well known neighbour The Wirral, often mistaken for Liverpool anyway!
Desirable investment property available on Hamilton Square, Birkenhead only 10 minute train journey to Liverpool Centre. Please email: info@baileyandstaples.co.uk for a viewing.
Bailey and Staples - Hamilton Square apartment for sale
Search Facebook for the local support group: “Wirral Property Investors & Landlords Support Group” or https://www.facebook.com/groups/1079126728851319/
Deals for readers:-
- Property Management Switching Service - 2 months management fee free and no sign up deals
- June Deal - Fully managed deal reduced to only 7% for our readers!
- Sales - Sell your home for only £500 flat fee on completion!
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