Even with the General
Election on the horizon, property values in Royal Leamington Spa are still
0.39% 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). Looking specifically at it from a Royal
Leamington Spa landlord’s point of view, the Royal Leamington Spa properties
favoured by investors are in short supply in many parts of the town 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 Royal Leamington Spa.
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 (more of ‘let to buy’ in an up and coming article).
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 Royal Leamington Spa.
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 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.
In the last 12 months, I
have noticed a particular uplift in
interest from ‘50 something’ Royal Leamington Spa people wanting to become
landlords for the first time. In Royal Leamington Spa, the highest returns for
the lowest investment are at the lower end of the market eg the classic
apartment . Unfortunately one/two bedrooms apartments are coming to the market
in smaller numbers than the larger four bed’s in top end sectors of the Royal Leamington Spa
property market. When looking at the actual numbers, in the later part of the
Summer of 2014 in Royal Leamington Spa, in one month alone 121 one/two bed
properties were on the market in Royal Leamington Spa.
However, in January this
year, a notoriously excellent bumper month for properties coming on to the
market, there were only 71 one/two bed properties on the market in Royal
Leamington Spa to choose from. Today, that figure stands at only 91 ..whilst
the number of four and five beds has increased significantly ... interesting don’t you think?
At that lower end of the
property market in Royal Leamington Spa, (ie 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, we are beginning to
see a polarised Royal Leamington Spa 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 Royal Leamington Spa, thus narrowing the gap
for people looking to move up market!
