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 Royal Leamington Spa property market. Talking to other Royal Leamington Spa agents,
surveyors and solicitors in the area over the last few days, there are signs
this has started a new impetus in the Royal Leamington Spa property market
after a subdued six months, when an amalgamation of tougher lending conditions,
a natural correction after the strong recovery in Royal Leamington Spa property
prices in 2014, and political uncertainty ahead of the General Election slowed
demand.
Against the
back drop of Labour’s election promises of rent controls and three year
tenancies, some Royal Leamington Spa 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 buy to let portfolio. Now that uncertainty has
been removed, the long term picture is very positive.
So, with all
that uncertainty now removed, where next for the Royal Leamington Spa property
market? Well with inflation at zero and
with the Money markets happy 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 large
deposits will now be wooed by the mortgage companies in the coming
months with low rates.
You see over
the past couple of years, Royal Leamington Spa landlords have benefitted from a
booming Royal Leamington Spa job market. Unemployment in Royal Leamington Spa and Warwick has dropped
to 1.1%
A year ago,
1,021 people were claiming unemployment benefit compared to today’s 586. 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 Royal
Leamington Spa properties.
Some
landlords might be nervous about Tory’s plans for the housing market over 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. These
kind of 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 52 Royal Leamington Spa
and Warwick properties since April 2013. Considering 998 properties have changed hands in the last
year alone in Royal Leamington Spa and 902 in Warwick, I don’t think
it has made a huge difference to our local property market.
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 you were seen as a second class citizen if you rented a property. In
Royal Leamington Spa, as in the rest of the UK (apart from Central London),
renting continues to offer good value for money for tenants. If you are an existing landlord in Royal
Leamington Spa or thinking of becoming one (or as we like to call you .. a FTL
.. a ‘first time landlord’), then I must suggest you seek out specialist advice
and opinion. Like many agents in Royal Leamington Spa, we will happily give you
our opinion on the current state of the
market and the advantages/disadvantages to investing in the Royal
Leamington Spa property market if you pop into our offices.2
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