What properties are actually selling in Aylesbury?

Prices up, prices down, prices stable... the newspapers are full of good news, bad news and indifferent news about the Brit’s favourite subject after the weather... the property market. The thing is the UK does not have one housing market. Instead, it is a patchwork of mini property markets all performing in a different way.  At one end of scale is London, which has seen average prices grow in the last twelve months by a shade under 19% (and again that is an average because some Borough’s in London have risen by 26%) whilst in the land of Daffodils, by contrast, Wales only saw a 2% increase in property values (although in the Merthyr Valleys they dropped by over 11%).

Well we can’t ignore the rest of the UK, and we can’t forget that the Chancellor’s Stamp Duty reforms have polarised the London property markets above £1,000,000 because at the top end of the market, punitive Stamp Duty charges will dampen demand further. While the Bank of England warned of the growing London property price bubble in the Spring of 2014, talk of a recovery in some areas was premature. In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets – really low levels of property coming on to the market.

The question you should be asking though is not only what is happening to property prices, but which price band exactly is selling? I like to keep an eye on the property market in Aylesbury on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Aylesbury. 

If you look at Aylesbury and split the property market into four equal sized price bands (in terms of households), each price band would have around 25% of the property in Aylesbury, from the lowest in value (the bottom 25%) all the way through to the highest 25% (in terms of value).  Over the last two months (63 days to be precise), in the lowest quartile, (those with prices under £165k) 85 properties have come on to the market in Aylesbury and 44.7% of them are sold stc (38 properties have a buyer).The next quartile, between £165k-£220k, of the 140 properties that came on to the market, 45% of them (63 properties) have a buyer. The £220k-£310k price range has seen 136 properties come on to the market, and 46.3% of the properties have a buyer (63 properties). The most expensive 25%, the £310k plus range, has seen 34 of the 116 properties that came on to the market find buyers (29.3%).   Fascinating don’t you think?

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any increase in the levels of stock this side of the election. Election or no election, people will always need a roof over their head and that is why the property market has rode the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. And why? Because Britain’s chronic lack of housing will continue to prop up house prices and prevent a post spike crash... there is always a silver lining when it comes to the property market! 

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 http://theaylesburypropertyblog.blogspot.co.uk/

 

 

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 http://theaylesburypropertyblog.blogspot.co.uk/

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

 

 

 

 

 

 

 

 

 

 

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
ian@mortimersaylesbury.co.uk

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 ian@mortimersaylesbury.co.uk or telephone me on 01296 39 85 55.

The pensioners are coming to Aylesbury!

Direct Line for Business has just released the results of some interesting research that reveals 32% of people aged 45 - 64 who have a pension would consider using all or some of their funds to purchase a buy to let property as an alternative to a traditional pension income funded by an annuity.
With the pension regulations change in April giving people access to some or all of their pension pots this is likely to mean an increased number of buyers in the property market (as mentioned in previous posts). We will have to wait and see if this translates in to stronger prices but this is likely as the market(in terms of volume) is still relatively small compared to 2006/2007.Quite small numbers of new buyers could make a substantial impact.
Therefore it makes sense to buy now, rather than wait, if you have funds available. But will the waiting game pay off?
Well it just might- if the election is inconclusive, rates go up or the European economy starts to bite us.
The research also shows that the main reason for considering the purchase of buy to let property is regular income (43%), but in 17% of cases it is capital appreciation. No surprise in the desire for income but the latter is more revealing as it indicates that these buyers are most likely to buy just one property rather than attempt to build up a portfolio. To build a portfolio the capital increase is desirable to generate greater equity which can be reinvested to make further purchases.When I first came in to the business the odd investor you came across was likely to be a wealthy individual with multiple properties, very different today. Most of my landlords are like you and me , trying to maximise returns from income by investing in property rather than trying to make a living from it.
Whatever your view the market remains busy and prices strong, great rents are being achieved for good property in good condition in good locations as always and void periods are minimal.
About to take the plunge and buy your first investment or adding to an existing portfolio? Get in touch and I will be happy to talk you though what is going on at the coal face.
01296 398555

Great choice of two properties in Aylesbury.

Hope you have all had a good start to the year. It has been pretty lively here in Temple Street which has been great...good level of new instructions and some of them have let very swiftly and at strong prices. I have just finished discussing market conditions with a new landlord hoping to buy his first property in the coming weeks and just have time to share the property tips I have given him with you before embarking on a weekend. The business press is full of positive housing market news...record low mortgage rates, record levels lent to buy to let landlords, there are now in excess of one million buy to let mortgages and so on. Doesn't look like the market is about to change!
Back to my investor...we discussed the two properties below that fit his budget...

This excellent one bedroom freehold property in Webster Road offers an ideal opportunity for a by-to-let investment. The property is situated on the much sought after South side of Aylesbury and benefits from being offered with no upper chain. One the ground floor there is a good sized lounge and kitchen whilst on the first floor a double bedroom and bathroom with white suite. The property does require a degree of tidying up, however is priced accordingly. Outside there is a small area of garden and two allocated parking spaces.


At £149,950 with an achievable rent of around £625pcm this offers a return of 5%.

This excellent two bedroom second floor flat is situated just off Pine Street on the sought after Fairford Leys development. The property has high ceilings throughout and accommodation that includes a spacious lounge opening into a modern fitted kitchen, a large master bedroom with en suite shower room together with a good size second bedroom and bathroom. In addition the property benefits from two allocated parking spaces which are situated in a secure underground car park just a short talk from the flat.

Currently tenanted (the tenant may wish to stay) paying £725pcm offering a return of 5.33%

Two good examples of ideal buy to lets...my new investor is out viewing this weekend. If I can help you find the right house or you would like to talk through your investment plans please pop in or give me a call 01296 398555

What does 2015 hold for the Aylesbury property investor?

If 2014 is anything to go on the property world looks pretty good. We had substantial capital growth through last year and increased rental returns, food and drink to investors. This year has a number of conflicting issues looming.
We can hardly miss the fact there is an election coming (usually a dampening effect on the property market), stamp duty changes have been implemented to most peoples benefit(positive), pension rules change in April (could release many new investors in to the market, drive prices up), lenders are keen to lend at unprecedented low rates (cheap money available to those with good deposits), high and rising employment levels reinforce consumer confidence. On balance the market looks good.
An inconclusive election result could have a negative impact and the European economy is unlikely to help us much. An interest rate rise before the election looks unlikely.
In summary if you are thinking of buying this year , right now is probably a good time to do so,before we see further price increases and while new stock is starting to arrive in the market place.
If you want to talk through your investment plans please give me a call on 01296 398555.

Nala is now 8 months old, about to reunite with her 8 siblings for a walk this weekend...could be interesting!

Great oppurtunity to buy on Fairford Leys

This excellent end terrace property was originally constructed by Wimpey Homes to their popular Carey design. The property is offered in good decorative order throughout and benefits from a modern refitted bathroom as well as a good sized refitted kitchen/dining room. In addition there are two good size bedrooms as well and a large lounge. To the rear is a low maintenance garden and the property also benefits from a single garage.All sounds good to me.

With a rent around £795pcm thats an annual gross return just shy of 4.9%.
Consider also that most pundits are forecasting further price increases this year, not as strong as 2014 but still around 5%. That would give you capital growth of £9745.00!
If this is of interest or you want to talk through your investment plans for this year please give me a call or pop in to our Temple Street offices...01296 398555

Follow up note...sale agreed full asking price to an investment buyer

A great buy to let with sensible return near Aylesbury town centre.

As regulars will know I am always happy to point the way to good buys or opportunities to fellow investors even if they are not available through my business.
This one looks a good buy to me www.rightmove.co.uk/property-for-sale/property-46741094.html?premiumA=true
Great little house with conservatory, close to town, off road parking...whats not to like!
If you have to pay close to asking with a rent of £750 to £800 thats still a gross yield of 4.4% and good capital growth potential locked up for the future.
Please feel free to contact me for views on any property you may be considering ian@mortimersaylesbury.co.uk

Watermead or Fairford Leys…which is the best area to buy a two bedroom house to let out?

A new landlord came to me last week seeking advice on how best to invest his money in buy to let property. He already has local knowledge being a resident here for years but has not bought property for a while. Family members had recommended both the above estates and he was looking for my further advice regarding property types also.

I have always been an advocate of buying two bedroom houses over flats or larger houses but which estate gives you the best return? Keen to give them the right advice I looked at the numbers in a bit more detail.

In the latter half of 2011 Fairford Leys two bedroom houses were achieving around £172,500. Through the first half of 2014 this had risen to around £199,000, a leap of £26,500 or 15.4%.

Watermead two bedroom houses on the other hand had achieved £162.125 in 2011 and £193,333 in the first half of 2014. A substantial increase of £31,208 or 19.3%.

But these figures only represent part of the story. The housing stock on Watermead is older so the house may require more maintenance or modernisation. Alternatively the price paid may have been higher as such work had been completed before the sale. But what about rental returns?

In the latter half of 2011 Fairford Leys two bedroom houses were available to rent at an average of £716. By the first half of 2014 this had increased to £734 an improvement by 2.5%.

Watermead two bedroom houses were £703 for the same period in 2011 and improved to £786 by the first half of 2014. This represents an increase in rent of 11.8%.

So you could argue that Watermead has been the better investment over the last few years, but you need to take the likely higher maintenance costs of older stock in to account. It is fair to say that if you have invested in a two bedroom house on either estate the market has been good to you!

The landlord mentioned at the beginning of this post has now completed on a house in Fairford leys that I viewed with him, the tenants have moved in and he has his first rent payment in the bank.

If you want to talk through your investment plans please contact me 01296 398555, ian@mortimersaylesbury.co.uk

Trying out the new harness for the first time

How affordable is Aylesbury property?

This question formed the basis of a lengthy and heated conversation (argument!) at the weekend with another estate agent and one of my friends who is also a local landlord owning several properties in the area that he rents out. Not going to tell you who won the day but I have now done some proper research and will not have to rely on gut feeling next time.
One measure of affordability in a town is the ratio between the average house price and the average salary. The lower the ratio, the more ‘affordable’ the property in that area.
Rightmove tells me that the average property price in Aylesbury is £215,422. The average salary is £31,107 giving a ratio of 1 to 6.9.
For comparison High Wycombe, values £255,615 and salaries £32,752 giving a ratio of 7.8.
Using the same formula I tried an area where property is much more expensive than Aylesbury but with salaries to match. Teddington average price £711,221 with salaries of £41,808 gives a ratio of 17.0!
So Aylesbury does look like good value when compared locally. Further the fact that nearby areas are less affordable with higher prices means that there is plenty of room for our sale prices to increase further…giving the investor a good shot at achieving strong rent with good prospects of capital growth, the ideal scenario.
If you want further details or to talk through your investment options please give me a call, pop in to our office or email me ian@mortimersaylesbury.co.uk