Is there a two speed Nottingham property market?

Even with the General Election on the horizon, property values in Nottingham are only 1.74% lower 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 generally only lasts a couple of months). Looking specifically at it from a Nottingham landlord’s point of view, the Nottingham properties favoured by investors are in short supply in many parts of the town because of a number of factors.

Firstly, there’s been an increase in first time buyers coming to buy their first home over the last 12 months and secondly, to continue to keep their risk profile as low as possible, the banks have also been chasing landlords with high deposits (by offering very enticing mortgage rates on smaller loans). These type of landlords tend to be attracted to the modern two and three bed town houses and semis in Nottingham.

As I mentioned a couple of 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 (if they are happy to overlook the tax implications) 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 also shouldn’t be forgotten that, for landlords, 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’ Nottingham people wanting to become landlords for the first time. In Nottingham, the highest returns for the lowest investment are at the lower end of the market eg the classic Victorian terraced house/apartments . Unfortunately Victorian terraced houses/apartments , with two bedrooms are coming to the market in smaller numbers than the larger four beds in top end sectors of the Nottingham property market. When looking at the numbers, in the later part of the Summer of 2013 in Nottingham, in one month alone 1,368  two/three bed properties were on the market. However, in January this year, a notoriously excellent bumper month for properties coming on to the market, there were only 968 two/three beds to choose from. Today, that figure stands at only 960 ..whilst the number of four and five beds has increased significantly!

At that lower end of the price brackets, (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 steady decrease in supply and likewise an increase in demand. This could lead to a polarised Nottingham property market, as more properties become available at the top of market, there may not be so much demand .. and that can only mean one thing ... prices will go up quicker on the smaller properties than the larger ones in Nottingham, thus narrowing the gap for people looking to move up market!

If want a chat about the Nottingham property market please email me on jaclyn.bartlett@centrickproperty.co.uk or call 0115 855 9720 (option 1).

Three bedroom house in Long Eaton, Nottingham with a yield of 4.8%.

Just a quick update! The three bedroom property in Long Eaton, has now been sold. Another great property for the Nottingham market and potential investors. 

The way it works in Nottingham is that you have to rent where you want to live, or buy where you don’t want to live

I had a really interesting chat the other day, with some of my tenants who live in The Park. They are a lovely couple in their early thirties and I know they have decent jobs in Nottingham. They have been tenants of ours for quite a while, so I know them quite well.  We got talking and I enquired if they ever thought of buying a property for themselves, to which they replied back with the title of this article.

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.

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 Nottingham were doubling at one point every four years in the 1970’s so property and profit started to feed off each other.

To put that growth in context, if we were to look at property prices in Nottingham, in 1930, the average Notts property was worth £355. Around the 70’s, this was around £7,500. Still very reasonable. However, by 1980, this had already gone up to £14,000 and by 2006, average prices had rocketed up to £123,521. So, where are we today? The average property value in Nottingham currently stands at pretty lofty £167,500.

We could blame Maggie Thatcher for making home ownership the ultimate goal, but we now need to consider whether we should start to love renting again. Some blame the banks and yes - obtaining a 95% mortgage is hard work, but nowhere near impossible. A typical Nottingham first time buyer would only need to save £6,000 for a deposit and fees and they could buy a very decent property. For example, you could buy a property in Sneinton, and it would be cheaper each month in mortgage payments than renting.

People might say on the surveys they want to buy, when it comes down to it. If you have been living in a top of the range large property in The Park, but the bank will only lend you enough to buy a smaller property in Sneinton, you may not wish to make the move. Don’t get me wrong, Sneinton isn’t bad at all, but it isn’t exactly The Park if we are being fair?

With tenant demand only going in one direction; it’s why more and more people are getting into buy to let in Nottingham. You must take advice on your pension from a Independent Financial Advisor and you must take advice from people who know what to buy (and not to buy) in Nottingham to ensure you get the best from your investment. For more information, email me on jaclyn.bartlett@centrickproperty.co.uk .

Look at this one bedroom duplex apartment in Hockley, Nottingham.

A perfect investment property has popped up on the market this morning. Located in the Heart of heart of Nottingham city centre. Take a look at the property here: http://www.zoopla.co.uk/for-sale/details/36512780

This is a perfect rental property and the perfect property for landlords looking for an investment property.  Located in a historic building, which has been converted into contemporary apartments.  

A bedroom duplex apartment consisting of an open plan kitchen, open plan living room with integrated white goods and double bedroom.

This is a great property for professional tenants looking for contemporary accommodation, who require to be located in Nottingham centre with great transport links.

With a property of this standard you are looking at a rental income of approximately £600pcm. This will achieve a rental yield of approximately 7%, a great rental yield for investors looking for properties in the heart of Nottingham.

If you would like further information on buy to let properties please contact me on Jaclyn.bartlett@centrickproperty.co.uk

Nottingham Landlords invest £2.075bn in the Nottingham Property market

East Midlands property asking prices jumped by more than £4,000 to £181,100 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 has started to warm up, but talking to some Nottingham Estate Agents, they are reporting their lowest ever stocks of quality property for sale. However, as asking prices have no relation to what property sells for (ie their REAL value), is the issue a lack of supply?

Putting aside Nottingham’s continual housing supply shortage, (we only built 10,019 properties in the last decade but the population of Nottingham grew by 38,662), 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 own property on the market as they can find few suitable properties to make it worth their while going through the whole moving process.

Talking to some Nottingham landlords only last week, I said that I believe this is the new norm in the Nottingham 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 Nottingham.

When one looks at the historic data, in April 2008 there were 10,809 properties on the market in Nottingham compared to today’s 3,505. Should we be worried?  Well in March 2010, there were only 4,678properties for sale in Nottingham but seven months later in October 2010, this had jumped to 6,409 properties, for it to drop to 3,708 properties in March 2014. The number of properties on the market is a cyclical thing in Nottingham, 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.

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 Nottingham 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 Nottingham landlords have stepped in and bought property to rent out to them. Nottingham landlords have bought 12,099 properties over the last decade (investing approximately £2.075bn buying those Nottingham rental properties), meaning there were at the last count, 27,300 Nottingham properties being privately rented out to tenants. Nottingham tenants are in fact getting a good deal as well, as average rents in Nottingham are 4.5% below where they were seven years ago. That sounds like a win-win situation for everyone to me. Stop blaming landlords and start building more properties in Nottingham.. that is the only answer.

In the meantime, the demand from Nottingham tenants for Nottingham 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 at jaclyn.bartlett@centrickproperty.co.uk

Potential investment opportunity in Beeston, now taken.

An update this sunny Thursday morning. The two bedroom semi- detached property in Beeston, Nottingham has now been sold. Another great opportunity for investors and more great news for the Nottingham property market. 

Spacious three bedroom property in Bilborough

A quick update on this three bedroom property in Bilborough, Nottingham, this property has now been sold. With two spacious bedrooms, two receptions rooms and conservatory, this would have been a great investment opportunity for tenants looking to rent out larger properties. Investors, keep your eyes peeled for more properties like this one, popping up on the market. 

A fantastic semi- detached property in Long Eaton, Nottingham

This three bedroom semi- detached house has just popped up on the market today for a great price. This would be a great property for investors. Take a look at the property for yourself here: http://www.zoopla.co.uk/for-sale/details/36344762

This is a perfect property for investors who are looking to invest in a larger property. This three bedroom house provides great living space, refitted kitchen, en- suite to the master bedroom and rear garden. 

Situated at the head of a private cul-de-sac, this property is perfect for tenants looking for a family home, in a secure area. Located in Long Eaton, the semi- detached house is located in an ideal location, with easy access too all amenities and facilities.

This property is currently on the market with Robert Ellis at an attractive price of £135,000. For a property of this size, located in Long Eaton you are looking at a rental income of approximately £550pcm.This would achieve a yield of approximately 4.8%.

Another great property on the Nottingham market that I suggest you take a look.

Should you wish to discuss properties investment opportunities or buy to let properties further, please contact me on Jaclyn.bartlett@centrickproperty.co.uk

News on the semi detached property house in Long Eaton, Nottingham…

More great news for the Nottingham property market. After being on the market for only a short while, the three bedroom house in Long Eaton house has now sold. This is a great property for investors and would be marketed for tenants looking for a larger family home. 

Look at this stunning apartment in Woodthorpe, Nottingham…

The perfect investment property has just come on the market in the sought after area of Bridgewater Court. A property not to be missed, take a look at it here: http://www.zoopla.co.uk/for-sale/details/36379667

A stunning apartment located in the sough after development of Bridgewater Court. This beautifully presented ground floor apartment compromises of two bedrooms, two bathrooms, allocated parking and views of the landscaped gardens. A perfect property for tenants who are looking to be close to local amenities and have access to excellent transport links. A great place for tenants looking for luxury living in a leafy village.

A fantastic investment property for all landlords seeking that little extra income every month. This apartment is currently on the market with ourselves for an attractive asking price of £119,950. With a property of this standard you are looking at a rental income of approximately £595pcm. This would achieve a yield of 5.9%, a great yield for landlords in Nottingham. This is a must see property!

If you are interested in discussing buy to let properties further or would like to discuss investment opportunities, please contact me on Jaclyn.bartlett@centrickproperty.co.uk