Only 23,720 Council Houses remaining in Nottingham…

The ‘Right to Buy’ scheme, a policy introduced by Margaret Thatcher in 1980, gave secure council tenants the legal right to buy the council home they live in at a discounted sale price.  The heyday of the Council ‘Right to Buy’ was in the 80’s and 90’s, when 1,719,368 homes in the country were sold in this manner between October 1980 and April 1998. In 1997 however, Tony Blair reduced the discount available to tenants of council houses and as a result the numbers of properties being bought under the ‘Right to Buy’ scheme began to decline.  Local housing associations have picked up the mantra and demand continues to be high.

So what does this mean for Nottingham homeowners and landlords?

Looking at the overall figures, 16,504 Council properties were bought by council tenants in the Nottingham City Council area between 1980 and 1998. These are large numbers by any measure and even more important to the whole Nottingham property market (i.e. every Nottingham homeowner, Nottingham landlords and even Nottingham aspiring first time buyers) when you consider these 16,504 properties make up a colossal 30.9% of all the privately owned properties in our area (in the local authority area, there are only 53,300 privately owned properties).

Nottingham first time buyers and landlords are now able to buy these ex-council properties second hand as those original 80’s and 90’s tenants (now homeowners) have more than passed the time of any claw back of the discount they received (council discount was repayable if the first owner sold within a stipulated time period - usually 5 years).

Now let us all be honest, some of the available ex-council properties lack the vital curb side appeal that a handful of landlords crave. Developers of new builds know all about curb side appeal as they dress up the exteriors of their new homes to make them more appealing to buyers.

We find that many landlords purchase buy to let property solely based on where they would choose to live themselves, instead of choosing with a business head and choosing where a tenant would want to live. Remember the first rule of buy to let property is that you aren’t going to live in the property yourself. What ex-council properties lack in terms of curb side appeal, they more than make up for in other ways such as location. Tenants will be more concerned about how close the property is to a particular school or family members for child care rather than the look of a property.

Ex-council properties tend to increase in value at a slower rate than the more modern properties, however this is more than made up for with the higher yields. Demand for such properties is good, as due to the current value of Nottingham properties and the tough lending criteria, people will reconcile themselves to renting, meaning there is a good demand for that sort of property to rent. Also, the very fact the council were forced to sell these Nottingham properties in the 80’s and 90’s, means that today’s younger generation who would have normally been able to get a council house may now be unable to do so,as many were sold ten or twenty years ago.

So to Nottingham landlords my recommendation is: don’t dismiss ex-council houses and apartments but remember the first rule of buy to let.  Nottingham landlords should go in with an open mind and take as much advice as possible. Not all ex-council properties are the same and even though they have good demand and high yields, they can also give you other headaches and issues when it comes to the running of the rental property. For further information and advice on topics such as this please pop into our property lounge for a drink and chat or email me on Jaclyn.bartlett@centrickproperty.co.uk

the perfect investment property with great views...

Apartments are popping up everywhere at the moment in Nottingham at the minute,  a great sign for landlords, tenants and the Nottingham property market. This little gem of a development has just popped up on the market. Take a look at the property for yourself here: http://www.rightmove.co.uk/property-for-sale/property-35331240.html

Located in close proximity to local amenities, the apartment offers two  bedrooms, one bathroom. allocated parking and fitted kitchen appliances. This is a perfect property for any investors looking to for a rental property a short distance from the City Centre. 

The property is currently on the market with Centrick Property with an asking price of £130,000 and also includes an offer of stamp duty paid. A property of this standard in Nottingham  would achieve a rental income of approximately £650, this would achieve an approximate yield of 7%.

This property is one not to be missed, the perfect investment property as either a single purchase or bulk buy, so what are you waiting for? Call now...

If you would like any information or advice on the buy to let market please email me on jaclyn.bartlett@centrickproperty.co.uk

Look at this two bedroom apartment in Nottingham...

Another fantastic investment property has popped up on the market this week, ideal for investment. Take a look at the property at:  http://www.rightmove.co.uk/property-for-sale/property-50325521.html

A great location for an investment property, this modern apartment consists of , two bedrooms,spacious family bathroom,allocated parking and lift access.

 This property would be a perfect opportunity for investors as it would attract tenants, who required to be located close to transport links and local amenities.

Currently the property is on the market with Top 365 Sales Ltd, Nottingham, you are looking at a rental approximately £806pcm. This would give you an average rental yield of 7%, not including any service charges or ground rent that may be required to be paid. This is a great opportunity and I advise you to take a look at the property for yourself.

If you would like further information on investment properties please feel free to me on jane.morcom@centrickproperty.co.uk

Has owning a home become an unattainable dream?

Interestingly, looking at some research by the Post Office from a few years ago, in the 1960’s the average age that people bought their first house was 23. By the early 1970s, it had reached 27, rising to 28 in the early 1980’s.

This year alone, 6,248 people in Nottingham will turn 28. We can expect 7,719 in 2017 and 10,255 in 2018 - year in year out the conveyor belt carries on. The question is: where are Nottingham younger generation going to live?

Ask the average ‘twenty something’ from Nottingham when they expect to be able to buy their first property and they will likely not until they are in their mid-thirties - seven years older than the average buying for the first time in the 1980’s. Some people are concerned that they will never be able to buy a property and the newspapers have labelled them ‘generation renters’ - they are people who were born in the 1980s who have no hope of getting on the property ladder. One of the major problems facing the first time buyers of Nottingham, is the large deposit needed to get a mortgage. Or is it?

The average price paid for an apartment in Nottingham over the last 12 months has been £119,700 meaning our first time buyer would need to save £5,985 as a deposit (as 95% mortgages have been available to first time buyers since 2010) plus a couple of thousand for solicitors and survey costs. A good deal of money, however people don’t think twice today about spending a couple of thousand pounds to go on holiday; the latest iPhone upgrade or the latest HD television. That amount could soon be saved if these ‘luxuries’ were withheld over a couple of years - but attitudes and lifestyles have changed.

Official figures from the Office for National Statistics show the average male in Nottingham with a full-time job earns £460.00 per week whilst the average female salary is £395.60 a week, meaning, even if one of them worked part time, a couple would still be able to get a mortgage for an apartment quite comfortably.

I have just read a report, which was commissioned by Paragon Mortgages, from the autumn of last year. The thing that struck me was that when tenants were asked about their long term housing plans, some 35% of participating tenants intended to remain within the rental sector and 24% intended to buy a house in the future, with 74% of respondents citing the “unaffordability” of housing as the reason for renting privately.

However, nine times out of ten in the starter home category (eg. apartments) the mortgage payments on a Nottingham property are cheaper than having to rent in the same area. It is the tenant’s perception that they can’t buy, so they choose not to. Renting is now a choice, tenants can upgrade to bigger and better properties and move up the property ladder quicker than their parents or grandparents (albeit they won’t own the property). Over the last decade, culturally in the UK, there has been a change in the attitude to renting. Unless that attitude changes, I expect that the private rental sector in Nottingham (and the UK as a whole) will remain a popular choice for the next twenty years plus. This will mean a continued demand for Nottingham rental property, with newly formed households continuing to choose the rental market instead of purchasing a property. I also forecast that renting will continue to offer good value for money for tenants and recommend landlords pursue professional advice and adopt a realistic approach to rental increases to ensure that they are in line with inflation and any void periods are curtailed. Should you require advice or tips on the Nottingham property market please email me Jaclyn.bartlett@centrickproperty.co.uk.