Whilst our dear friend
George Osborne has decided now is the time to milk UK’s private landlords, with
changes in taxation for buy to let property, many pundits are predicting the
end of buy to let as we know it. However, it is still possible to make a
reasonable, profitable and safe return on property when these changes commence.
I have always seen investing in the Aylesbury buy to let market (as I would
anywhere in the UK), as I might see Mother Nature, creating some truly
wonderful stunning warm weather but at the same time, she will bite, creating
catastrophic situations such as snowstorms and hurricanes. You need to study the market, take advice and
opinions from many people and then decide what the property weather will be …
remember, tenants will always want a roof over their head and I don’t see the Government
building the millions of houses required to house them.
Nobody knows the future,
and yes people can predict but I would not be afraid of this change... because
as a famous French proverb says, ‘the more things change, the more they stay
the same’. No one could have
predicted how the property market has changed in Aylesbury over the last couple
of decades? Looking specifically at the Aylesbury Parliamentary Constituency,
twenty years ago, 27,875 households (meaning 69% of property) was owned and
only 1,049 households were privately rented (meaning 2.6% of property was
rented out by private landlords). Roll the clocks on twenty years and the
change has been substantial … Now 29,915 of properties in the Constituency are
home-owners (69.15% being owner occupied) but the jump in private renting has
been out of this world, as 6,538 properties are now privately rented (proportionally
15.19%). Neighboring Constituencies show similar changes as well.
Who would have predicted
in 1995 that the private rental sector in Aylesbury would have grown by 484.23%
in the proceeding 20 years?
Also, if you had asked
someone in 1995 to predict what would happen to property values over the
proceeding 20 years (i.e. between 1995 and 2015), they might have
predicted similar growth to the growth experienced over the previous 20 years (i.e.
between 1975 and 1995), which was a very impressive 351.55%. Yes, property
values in Aylesbury have increased over the last 20 years (between 1995 and
2015), but by a more modest 267.39% (and most of that can be attributed to
house price growth between 2000 and 2006.)
The property market is
constantly changing and buy to let has often been heavily dependent solely on
house price growth, where yield has taken a back seat. I see the changes in tax and landlord/tenant
law in a different perspective to the doom-mongers and see it as bringing many
opportunities. You might need to change your buy to let outlook, your approach
to financing, but this will shine a light on investing in properties with
healthier yields and create realistic long term buy to let opportunities,
instead of short term growth bets and wagers.
The
advice I give to my landlords… these changes will make some landlords panic,
meaning competition for attractive Aylesbury buy to let bargains will reduce as
fear of change kicks in and uninformed investors flee the market. These
opportunities will provide a more stable platform for knowledgeable Aylesbury
buy to let landlords to thrive in.
If you want to learn more about the Aylesbury
Property Market pop in to my office in Temple Street for a coffee and a chat or
failing that, visit the Aylesbury Property Blog, where you will find many more
articles like this ...solely on the topic of the Property Market in
Aylesbury http://theaylesburypropertyblog.blogspot.co.uk/
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| Sunny afternoon walks on Fairford Leys |
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