Friday, 27 February 2015

Ayelsbury – massive drop in homeownership

Ok, a slight turn of phrase there on the classic, an Englishman’s home is his castle but when it comes to the UK the ‘Brit’s are still a nation of homeowners ‘(although wasn’t it Napoleon who thought we were all shop keepers!). It is interesting to note that up until the mid to late 1960’s, more people rented their home (albeit mostly from the local council) than owned their own. In fact, I was surprised to read that in 1921, over 75% of homes in England and Wales were privately rented with the remaining 25% being owner occupied. 

It was only after the Second World War, when the Beatles were rocking, that people started to buy instead of rent ... but instead of owning our property outright, we borrowed money from banks and building society’s to buy them and the roots of the growth of the private rental sector can be drawn back to the late 1970’s early 1980’s, when the council houses began to be sold off under the right to buy scheme. Even though 48,864 households in Aylesbury were owner occupied in 2001 and that number had actually increased to 49,702 households by 2011, the percentage of homeowner properties in Aylesbury dropped drastically from 75.72% to 71.61%. Why, because whilst an additional  4,880 properties were built in Aylesbury between 2001 and 2011, a lot of them were bought as buy to let investments, thus more than doubling the number of private rental properties in Aylesbury. In fact, the number of properties in Aylesbury that were privately rented jumped from 4,125 in 2001 to 8,096 in 2011!

With no more council houses being built, this is increasing the number of people looking to renting, as everyone needs a roof over their head. With the Aylesbury Vale Council house waiting lists being in the 5 to 10 year range for a decent property in a decent location, it shouldn’t be forgotten that it is often Aylesbury landlords who house tenants waiting for a council house. Aylesbury landlords do not receive any subsidies from HMRC and income tax is paid on rent paid by the tenant.

However, in Aylesbury, as we have noticed more and more of the younger generation are renting because they can‘t afford to buy (raising a deposit being the sticking point for most), and a high percentage of the expansion in private renting actually comes from those who need and want temporary or short term accommodation. There are even a few landlords who rent their own Aylesbury property out for the short term, for ease, and not necessarily purely for profit.

With every report stating the rental market will continue to grow throughout the rest of this decade, with high demand and limited supply in the Aylesbury area now is still a good time to get in to the market. I have spoken to numerous landlords over the last couple of weeks who wish they had bought last year or at worst the early weeks of this year as prices have risen sharply. Those landlords who acted have already seen capital growth…two properties I have put on the market for new landlords this week (they have just completed) have already seen in excess of a £10,000 increase in the value of their investment.

 If you are considering buying a property for investment in the near future in Aylesbury, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. You may be seeking capital growth, monthly yield or a measure of both, it is important to purchase the right product to suit your needs. If you are a landlord, new or old, I am certainly more than happy for you to pick up the phone (01296 398555), pop in to see me in temple Street or visit the Aylesbury Property Blog

Princess Nala looking regal...note the muddy paws, my garden looks like the surface of the moon.

Friday, 20 February 2015

A smart two bedroom apartment in watermead, Aylesbury.

A great opportunity to buy a first floor apartment on this popular lakeside development, expected to return a rent of around £700pcm giving a gross yield of just over 5%. Regular readers know I have a preference for buying houses but if flats are your thing this is a good one.
The property is situated on the sought after Watermead development which can be found on the northern outskirts of Aylesbury. The development is based around two picturesque lakes and a central piazza which offers a range of individual shops and a public house/restaurant. The development is served by a regular bus service providing quick links into Aylesbury town centre.

If you need further details or wish to talk through your investment needs please give me a call or drop in to our Temple Street offices to have an informal chat . 01296 398555

Thursday, 19 February 2015

Property values rise by £515 per week in Aylesbury

Last week, a landlord who lives in Ballinger Common came in to our office to discuss the rising property values in the Buckinghamshire area. He owns a varied portfolio of rental properties, primarily in Aylesbury and Berkhamstead with one in Tring, so it is interesting to compare the increase in property values around the area.

Over the last 12 months in Aylesbury average property values have risen from £295,900 to £322,700, a rise of £26,800 or £515 per week. When I looked at some of the surrounding areas, Berkhamstead has had a much higher average increase in property values, at around £717 per week (as the average value of a Berkhamstead property has risen from £526,200 to £563,500) , whilst Tring has had a much lower rise of around £351 per week (taking an average property in Tring from £430,000 to £448,300).

Interestingly, when one looks at the percentages, Aylesbury has performed the best, rising by 9% in the last 12 months, compared to Berkhamstead at 7.1% and Tring at 4.2%! 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 Aylesbury– good news for home owners and landlords alike.

However, back to Aylesbury, 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 Aylesbury, or even buy another?”
• “Is the time right to buy another buy to let property in Aylesbury and if not Aylesbury, where?”
• “Are there any property bargains out there in Aylesbury?”

When considering this landlord’s buy to let portfolio, yields can be in the order of an average 3.5% to 5.5% 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 Aylesbury 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 Aylesbury landlords do and visit the Aylesbury Property Blog where I discuss the Aylesbury property market, how Aylesbury compares with its neighbouring towns/ rivals, and at the same time, I can hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. If you are ever passing, do pop in and see me at our office on Temple Street, Aylesbury or email me at or telephone me on 01296 39 85 55.