With 11,162 people in Private Rented Properties in Aylesbury - Should you still be investing in Aylesbury Buy To Let?

As a buy to let landlord in Aylesbury today, I feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury there has been a tempering of the Aylesbury property market with property prices not increasing by the levels we have seen in the last few years. I don’t think we will see a drop in property prices this year but if Aylesbury property prices did drop, the downside is that first time buyers could be attracted back into the Aylesbury property market. This would mean less demand for renting (rents would go down). Yet, before we all run for the hills, these things could be serendipitous to Aylesbury landlords, almost a blessing in disguise if this was to be the case. 

Aylesbury has a population of 71,076, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me … 

Aylesbury - Accommodation Type and the Number of Occupiers
Owned outright - Aylesbury	Owned with a mortgage - Aylesbury	Shared ownership (part owned and part rented) - Aylesbury	Social rented (aka Council Housing) -  Aylesbury	Private rented - Aylesbury	Living rent free - Aylesbury
14,301	33,466	724	10,918	11,162	505
20.1%	47.1%	1.0%	15.4%	15.7%	0.7%

 Yields will rise if Aylesbury property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Aylesbury landlords add to their portfolio. Rental demand in Aylesbury is expected to stay solid and probably even see improvements. However, there is something even more important that Aylesbury landlords should be aware of: the change in the nature of these 20 something potential first time buyers. 

I have just come back from a visit to relations after a family get together. I got chatting with a nephew and his partner.  Both are in their mid/late twenties, both have decent jobs and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a 50 something, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters. 

 

So, as 15.7% of Aylesbury people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Aylesbury – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch - there is nothing like bricks and mortar!