THIS WEEKS UPDATE ON THE PROPERTY MARKET IN LEAMINGTON SPA

Still no Clarity on The Smoke and Carbon Monoxide Alarm (England) Regulations 2015.

I sometimes manage to grab a coffee with some of our Landlords, this morning it was myself and a Landlord who has been with me for 9 years. We usually moan about the weather, government, business and lack of holidays however this morning we were wrapped up in the requirement for Carbon Monoxide testers in rental properties and he was confused on the requirements for his portfolio.

For me since I set the business up there has simply been to many associations to be a member of for example ARLA, NAEA, safe agents and the Property Ombudsman this leads to a lack of clarity on representation and on legal changes for our industry. There has been widespread talk of the requirement for Carbon monoxide testing from the 1st October 2015 on all rental properties well here is some clarity on the requirement's....

The legislation is in draft form Click here to review

It clearly states in clause 4.1.11 that the requirement currently applies to properties with solid fuel burning combustion appliance this is clearly not for example gas central heating.

My guidance to my Landlord was Carbon Monoxide testers should be installed as Best practice in due course as the legislation might change, its good professional care of your property and most importantly the safety of your Tenants.

THIS WEEKS PROPERTY TIP FROM THE LEAMINGTON SPA PROPERTY MAKRKET

Click here to view this property

This apartment looks really nice and spacious from the Photos. With demand in Leamington Spa being at a record high for rentals in the town it is worth a look at for an investment. According to Righmove it appears to have had good capital growth.

It is currently on the market with Reed Rains of Leamington Spa for £179,995. 

We have rented several high quality one bed apartments this year in Leamington Spa and would expect this to go quickly especially if furnished to a good standard. We would market this property at £800 to £850. So if we base our sums on the max figures, you would still walk away with a 5.6% yield, which in this market is typical in our area. 
 
If you would like any more advice on where (or not) to buy, just drop me a line on sean.driscoll@martinco.com

FABULOUS BUY TO LET PROPERTY ON THE MARKET IN LEAMINGTON SPA

Click on the link to view the property on Rightmove

http://www.rightmove.co.uk/property-for-sale/property-52995512.html

This apartment caught my eye this morning whilst I was looking reviewing Leamington Spa property Market. These Apartments are a very good size and always rent really easily.
It is currently on the market with Distinct Estate Agents of Banbury for £239,950. We have several rentals in Manor Court ranging from unfurnished two Beds at £995pcm up to the fully furnished two beds at 1150 pcm. So if we base our sums on the max figures, you would still walk away with a 5.6% yield, which in this market is typical in our area. However Capital Gain here would be fantastic and worth keeping the property for a few years
If you would like any more advice on where (or not) to buy, just drop me a line on sean.driscoll@martinco.com

Do Bedrooms affect a Buy to let Property’s investment potential in Royal Leamington Spa ?

Last week, a landlord from Royal Leamington Spa emailed me to ask, after reading the Royal Leamington Spa Property Blog, 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 would be get an ‘inexpensive’ extension.

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 / town house to make a three bed property, it will add 10% to the value of the property.  Turn a three bed terraced into four bed terraced, and 9% will be added to the value. Looking at semi detached properties, and turn a two into a three bed and 12% will be added to the value, whilst making a three bed semi into four bed will add 9% in value.

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 / town house in Royal Leamington Spa is currently £267,700 whilst the average value of a semi detached house is £263,900, meaning to make money the cost of the extension would need to be less than £25,431 on the terraced property and £27,709 on the semi detached house. Talking to a number of trade’s people in the town, 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!

Well, that got me thinking about how bedrooms affect rental prices and rent ability as well.   Interestingly below, you will see that whilst bedrooms do have an effect on the rent that can be achieved and the rent-ability of the property – the difference does not warrant the expense, hassle and trouble of extending.

·         58.4% of the one bed properties on the market to rent in Royal Leamington Spa have a tenant with an average rent of £751 per month

·         61.1% of the two bed properties on the market to rent in Royal Leamington Spa have a tenant with an average rent of £948 per month

·         61.2% of the three bed properties on the market to rent in Royal Leamington Spa have a tenant with an average rent of £1,281 per month

·         41.3% of the four bed properties on the market to rent in Royal Leamington Spa have a tenant with an average rent of £1,510 per month

Now, if you want to increase the value of your property, be you a Royal Leamington Spa 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.