Wednesday, 25 February 2015

Is the Grantham Property market holding its breath over the General Election?

Has apathy has hit the Grantham housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand? Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier.

Looking at Grantham, in the early summer of 2014, each estate agent in Grantham had on average 34.3 properties on its books (as there were a total of 584 properties up for sale in Grantham at the peak in the early summer just gone). Our research shows that number plummeted to 26.4 per agent in December.  While the lack of new properties coming onto the market in the later months of 2014 in Grantham pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.

The length of time a property takes to sell has ever so slightly increased over the last few months. Two bedroom properties in Grantham are now taking 62 days to sell, three bedroom 78 days, four bedrooms 94  days, but here an interesting figure, one beds are taking on average 26 days to find a buyer

2015 will be the year of the selective mover.  With only 166 brand new properties a year being built in Grantham since the turn of the Millennium, this woefully low and insufficient number of new buildings in the town over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.

The heat has gone out of the Grantham property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014, but it most certainly isn’t icy cold. 

That might mean Grantham landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy  or the election, if people don’t buy property they rent.  The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar! In fact with less properties coming on the market in Grantham, that will keep prices quite stable.

Monday, 23 February 2015

Grantham Property Market - February 2015 Wk3 - THE REAL STORY

In the last 30 days (since 24th January 2015), 167 properties have come on to the market in Grantham.

Of the 167, only 33 have a buyer, just around 1 in 5 or 19%

In the last 60 days, since Christmas Day, 253 properties have come on the market in Grantham, 26.5% of them (or 68 properties) have a buyer.

Interesting dont you think?

The market is fair, very fair, but if you are selling a property, you need to be realistic with your pricing

Sunday, 22 February 2015

Grantham's Worst Performing Bungalow in last 5 years

At the top of Barrowby Road hill, on the left hand side is a bungalow tucked away.

It sold in December for a baragin £170,000, especially when you consider it sold in May 2008 for £235,000, dropping in value by over 26%. Interestingly, whilst values today in Grantham are lower than they were in 2008, they are only 8.9% lower.

Someone got a bargain I think!

Here is a link to look at the internals  ..

Street scene here ...

Friday, 20 February 2015

Property values rise by £290 per week in Grantham

Last week, a landlord who lives in Ropsley stopped me in the street to discuss the rising property values in our part of the East Midlands. He owns a varied portfolio of rental properties, primarily in Grantham and Newark with one in Sleaford, so it is interesting to compare the increase in property values around the area.

Over the last 12 months in Grantham average property values have risen from £167,000 to £182,100, a rise of £15,100 or £290 per week. When I looked at some of the surrounding areas, Newark has had a much lower than average increase in property values, at around £111 per week (as the average value of a Newark property has risen from £179,200 to £185,000 , whilst Sleaford has had a slightly higher rise of around £184 per week (taking an average property in Sleaford from £163,300 to £172,900).

However, when one looks at the percentages, Grantham has performed the best, rising by 9% in the last 12 months, compared to Newark at 3.4% and Sleaford at 5.8%! It is, nonetheless, a rise in all the town’s average property values which suggests the market is increasing steadily in our area, but especially Grantham– good news for home owners and landlords alike.  

However, back to Grantham, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-

·        “Should I sell my property in Grantham, or even buy another?”
·        “Is the time right to buy another buy to let property in Grantham and if not Grantham, where?”
·        “Are there any property bargains out there in Grantham?”

When considering this landlord’s buy to let portfolio, yields can be in the order of an average 4% - 6.5% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Grantham as property values start to rise.

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, do what a number of other Grantham landlords do and visit the Grantham Property Blog (link here ) where I discuss the Grantham property market, how Grantham compares with its neighbouring towns/ rivals, and at the same time, I can hopefully answer the three questions above.

Thursday, 12 February 2015

Flat Top Buy to let deal of the day

William H.Brown have just put this flat top 3 bed town hosue on the market at £99,950 on Beechcroft Road .. not bad a free hold 3 bed for under £100,000.

Should rent for £500 per month with a fair wind, giving a annual yield of 7.2% at the asking price, but pay £95,000 and its 7.5%

Huge conservatory, not bad at all inside (see the internal pictures).

Will always let well .. remeber, you arent living at the property Mr(s) Landlord!

Link to the details .. dont think it will be on the market long though.

Wednesday, 4 February 2015

Ugly duckling BTL - dont judge a book by its covers Grantham landlords

Billy Browns (William H. Brown) put this ugly looking property on Derwent Road for £94,950 yesterday. Dont know where Derwent Road is, its off Foston Road. You dont know where Foston Road is do you ;-) ... Just off Goodliff Road on the dip opposite the row of shops on Hillingford Way.

Here is the link to the property  .. have a look at the internals, not bad (colours are a bit wacky, but nip down to B and Q on London will soon sort that out) and she will let out until the cow's come home.

I have a good feeling about this one

Monday, 2 February 2015

Alma Park bungalow with Newton Falowell - needs serious consideration

Newton Fallowells have just put this bungalow on the market over the weekend. Its on the Alma Park for a very reasonable £114,950 .. which is very fair indeed.

Might not have stellar yields, but in the next 5 to 10 years, more older people will want to rent, and they will pay top dollar on rent if its nice.

Link to the property here