Wednesday 20 June 2018
Tuesday 8 May 2018
Wednesday 15 March 2017
Great potential in Burley with over 13% return
This 4 bed house on Wetherby Place in Burley is in a prime location for both students and professional renters. Located just off Burley Road it's a short journey to Burley Park train station and main commuter routes and is close to both universities.
In it's current state, it's not a 'wow' property but it definitely has the potential to be a great rentable property especially now the price has been dropped.
As the advert states the basement has great potential and upon viewing the property myself I could see that the basement doesn't require quite as much digging out as first thought. It has had much of the work already done but the rubble just needs removing and the concrete floors are already in. In order to create an additional bedroom down there will require mainly cosmetic work which really costs the renovation costs down.
To make this property a great investment and to make it appealing to renters I would suggest converting the basement into a bedroom with a bathroom and updating the kitchen and decor throughout. I would also recommend re-configuring the first floor to utilise the space better. There is quite a bit of used space on the landing so if you converted the small bedroom into the bathroom and then create two long bedrooms that run from the front to the rear and install a window you create two much more even spaced bedrooms. On the top floor the bedrooms are uneven so by using some of the large landing again you could definitely even up the bedroom space.
All this work would likely cost around £30,000. A modern property of these proportions in this area can achieve around £21,320 pa so if you were able to get the property for around £130,000 that would give you a healthy return of over 13%.
Friday 3 March 2017
Great Burley house with over 10% return
This 5 bed house on Knowle Place in Burley is in an ideal location for both professionals and students. It's within close proximity to all the main commuter routes and a short walk away from Burley Park train station which takes about 5-10 mins to get into Leeds City centre.
All the bedrooms are of great proportions so very little work is required other than some minor cosmetic work meaning you'd have little void period so this property is an ideal choice for an investor looking to make a return straight away.
A property like this would likely rent out for £20,800pa so if you were able to get the property somewhere in the region of £195,000 that would give a good return of over 10%.
Thursday 2 March 2017
Stylish house in Burley with nearly 12% return
This 4 bed house on Stanmore View in Burley is the perfect investment for the landlord who doesn't want to spend time doing up a house and who wants to move a group in straight away. This property has been beautifully done out to a very high standard and all the space has been utilised well.
It's located in a great part of Burley and despite the agent advising it appeals to professionals, we've let many houses to students also in this area so you are definitely broadening your market picking a house in this area.
A 4 bed property of this standard could likely achieve £18,720pa so even if you paid the asking price of £160,000 you would get a return of nearly 12%.
Tuesday 21 February 2017
High spec Burley house with nearly 10% return
This 5 bed house on Village Place in Burley is the perfect investment property for the investor who doesn't want to spend time and money on a 'fixer upper'.
All the hard work has already been done and the result is a fantastically modern, high spec house.
Due to it's location it would appeal to both students and professionals alike, broadening your reach for tenants. Understandably it's already been let out until June 2018 so you're guaranteed a return of nearly 10%.
We've let similarly newly refurbished houses in the same area for around £90pppw so I'd say you could comfortably aim for a slightly higher rent for the following year which would give you a return of over 10%.
Monday 16 January 2017
Beautifully done out house in Burley with potential 11% return
This beautifully done out 3 bed property on St Anns Avenue offers the best of both worlds to an investor. It's already in a fantastic condition so could be rented out straight off the bat but there is also great potential for converting the basement in to another bedroom.
It's in a great location that appeals to both students and professionals as it's just off Burley Road and is in close proximity to Burley Park train station and regular bus services into Leeds City Centre.
The Kirkstall Bridge Shopping Park is just a short journey away and there are great shopping and leisure facilities available on Kirkstall Road.
The property itself has been recently refurbished as well as having had a new boiler recently also. It could very easily be rented out straight away as it is although I would definitely recommend converting the basement to create a fourth bedroom with an additional bathroom. This work
A property of this standard, if rented out to 4 tenants could achieve £18,720pa so if you managed to get the property for around £150,000 and then spend around £10k on the work then you would get a return over 11% and a fantastic property.
Friday 13 January 2017
Newly refurbished house in Burley/Kirkstall with nearly 10% return
This beautifully done out property on Eden Crescent on the Burley/Kirkstall border has been finished to a very high standard. This location is of particular interest to the young professional market with it's great transport links to Leeds City Centre. It's also great for access to the surrounding areas and all the great local amenities.
The ad mentions it could be rented out as a 4 or a 5 bed which means it could be rented out to a group of young professionals or as is ever popular as a house share. If you were to go down the route of renting it to 5 tenants you would need to fit another bathroom or at least another toilet to meet the required standards and also check if the property already has a HMO licence so that's definitely something to think about. Alternatively you could easily rent it out to 4 people.
With a house of this standard you could likely achieve around £85pppw. If you were to get the house for around £220,000 and kept the property as it is and thus rented it to 4 people you'd be looking at a healthy return of 8%. If, however, you wanted to go down the route of renting it to 5 people you could easily create a Jack-and-Jill bathroom on the first floor using the 2 larger bedrooms. This would likely cost around £3,000 which is turn would give a healthier return of almost 10%.
Monday 12 December 2016
Fantastic 8 bed semi-detached in Headingley
This huge semi-detached property on Cardigan Road is a great property located in a highly sought after part of Headingley. It appeals to students at all campuses in Leeds and is also an area popular with young professionals.
The property is split in to two 4 bed flats, each of which boast plenty of space and both come with 2 bathrooms which always puts itself ahead of the majority of 4 beds that usually only come with one.
One of the flats has recently had a brand new kitchen installed so it looks as though it's in a lettable condition as it is but due to the space that comes with this property there is definitely the potential to add en-suite bathrooms to each bedroom in order to boost the rental income. Modern en-suite properties of this size and in this area often go for around £95pppw.
If you spent around £10-15,000 on the property and if you managed to get it for around £375,000 you would be looking at a return of 10% and be safe in the knowledge that it would let out all day long.
Monday 5 December 2016
Semi detached house in Headingley with 10% return
This semi detached house on St Annes Road in Headingley is a fantastic property in a brilliant location. It massively appeals to both student and professionals due to it's proximity to Headingley campus and it's position so close to Otley Road. Houses like these never fail to appeal to renters so there wouldn't be any doubt this would rent out all day long.
If you spend around £8,000 updating the decor, fitting a new kitchen and bathroom suites you could easily achieve a monthly rental income of £2,392. All the rooms are already really good sizes so you wouldn't need to spend time and money on knocking any walls down so it wouldn't take long to get the property looking fantastic so there shouldn't be any void periods.
The asking price of £290,000 in my opinion is little high so if you were able to haggle it down to around £275,000 you would then be looking at a good return of 10% and you'd have a house that wouldn't struggle to let all year round.
Wednesday 30 November 2016
Great investment property in Burley
This 3 bed terraced house on Woodside Place in Burley would appeal to both students and professionals alike. It's in a great spot close to the universities and close to main transport links into Leeds City Centre.
The house is already in a pretty good condition but there is definitely potential to add value to increase the rental income. There's space to create an en-suite bathroom next to the basement bedroom which is currently being used as storage. You could also move the door to the first floor bedroom to allow that room to utilise the current bathroom and then fit an en-suite shower room on the top floor.
If the property was fitted with a new, modern kitchen and the decor was freshened up you could likely achieve around £14,040 per annum. The refurb work would likely cost around £8,000 so if you managed to get the property for somewhere in the region of £140,000 that would then give you good return of nearly 10%.
Monday 21 November 2016
Great investment opportunity in Headingley with 10% yield
Properties of any kind on Headingley Mount are always a good bet as they never fail to rent out. They are always hugely popular as it's located in the heart of Headingley.
This property contains 3 flats; two 1 beds and one 2 bed and there is always huge demand for properties like these in this area so you could be comfortable in the knowledge that these flats would rent out all day long.
If a bit of money was spent freshening them up and modernising them a little with new kitchens, carpets, decor etc you could easily achieve around an annual income of £24,000. The work would likely cost around £8,000 so if you managed to get the building for around £235,000 then that would give you a good return of nearly 10%.
Monday 10 October 2016
Fantastic house in Kirsktall with potential 13% return
This 5 bed house on Victoria Road is in a prime location for professional renters and an area that we always have big demand for.
The current rent achieved could easily be bumped up by bringing the spec up and wouldn't cost the earth to do so in my opinion is definitely worth doing. I would recommend putting in a new kitchen and updating the decor.
The room sizes are already pretty good and in fact you could take some of the space from the large first floor bedroom and convert what's currently just a toilet room into a shower room as this is one of the few things letting this house down. Tenants are never keen on only having one full bathroom to share with 4 others so by utilising this space you'd make this house a more desirable option to tenants out there.
By doing this you could achieve a monthly income of around £1733 (excluding bills) and the work would likely cost around £5-£8000. If you could get the house for around £155,000 that would then give you a fantastic return of nearly 13%.
Monday 3 October 2016
Fantastic 4 bed house in Burley with 10% return
This 4 bed house set in the heart of Burley would make a fantastic investment. It's located just off Burley Road which is an ideal location for professional renters what with it being so close to plenty of main transport links such as Burley Park train station and the main bus routes.
We've recently let a lot of properties in this area to either groups of professionals or as houseshares so there really is a great demand for properties like this in this area.
The property already looks in great condition so it doesn't look like you'd need to a great deal - if anything to it to get it ready to let out.
For a property of this standard you would be looking at a monthly rental of £1400. If you managed to get the property for around £165k that would give you a very healthy return of 10%.
Monday 19 September 2016
Fantastic buy-to-let opportunity in Burley with great potential
I've come across this great property on Haddon Avenue in Burley which looks to have some great potential. It's in a great spot which would appeal to either students or professionals.
The property is in reasonable condition as it is and the advert claims it has a healthy monthly rent per room but I would definitely want clarification as to whether those rental amounts include the utilities as from my experience as it's a house share and from those figures I would imagine it does. You wouldn't want any surprises when it comes to your predicted return.
It's a 5 bed house but as you can see from the advert, it's only been let to 4 tenants as the fifth room is small so there's currently wasted space. In order to maximise the space I would recommend spending some money to bring the property up to a high spec where you could command a higher rent. I would suggest turning that small bedroom into a either a house bathroom or en-suite for the larger bedroom. I would also suggest knocking down the wall in between the living room and kitchen to make a more open space, fit a new kitchen and update the decor.
This work wouldn't cost a huge amount; maybe in the region of £10-15,000 and then you'd be able to rent the property out for around £1650pcm. If you were able to get this house for around £150,000 that would then give you a great return of over 12%.
Monday 5 September 2016
Great house in Burley with a potential of 10% return
This semi-detached house on Burley Wood Lane is ideally located for professional renters. Located in between Burley Road and Kirkstall Road it's a prime location for transport routes straight into Leeds City Centre.
Due to some of the room sizes there is definitely the potential to reconfigure this house and to create a great 4 bed house to maximise the return.
Firstly I would suggest knocking the wall down in between the kitchen and dining room to open up the space and to create an open plan living room and kitchen. The current living room could then in turn be turned into a bedroom. On the first floor I would suggest taking out the current bathroom and toilet and moving it to where the current small bedroom is. This then allows you to use this space to create a longer bedroom and then you could use some of the width to create another bedroom if you also made the current bedroom 2 a little smaller.
To reconfigure the property and to also update the decor with new carpets etc you would be looking at around £35,000. Once updated, a property of that standard and in this area could likely achieve £1,560pcm which is you managed to get the property for around £150,000 would give you a good return of 10%.
Monday 15 August 2016
Brilliant 3 bed house in Burley with 11% return
Houses of this type are always hugely in demand for professional renters. This spacious 3 bed house located on Wetherby Place on with Moores is a fantastic property that would rent out all day long.
It's ideally located just off Burley Road and with all the main transport links it offers, as well as not being far from Burley Park train station. There are plenty of shops only a stones throw away and it only takes around 10 minutes to get in to Leeds City Centre.
The property itself is already in great condition so there wouldn't be any need to spend any further money on it so it could be rented out straight away. Three beds in this area of this standard rent out for around £1155 per month which would bring in an annual rent of £13,860. If you were able to get the property for around £125,000 that would give you a great return of 11% which would definitely be a great addition to any landlords portfolio.
Monday 1 August 2016
Brilliant house in Burley with potential for over 12% yield
In it's current condition, this 5 bed house on Stanmore Street wouldn't really knock anyone's socks off but it definitely has great potential. Looking at it, there is quite a bit of wasted and unused space and with some clever 're-jigging' of the current rooms you would create a 6 bed property that would be a sound investment.
Firstly, it's in an area that appeals to both student and professionals. It's located just a short walk away from Headingley and is also close to all the main transport routes that Burley offers.
You could best make use of the space by converting the unused basement in to two bedrooms with a shared 'Jack and Jill' bathroom. The first floor is far too crowded and the bedrooms are too small in it's current layout so I would suggest taking out the current bathroom and toilet, losing a bedroom on that floor and creating two larger bedrooms with a shared bathroom. On the top floor you would just need to add a 'Jack and Jill' shower room.
Updating the decor and putting in a new kitchen would really finish it off and you would create a desirable property that would likely let out for around £90pppw. The refurb cost would likely cost in the region of £45k so if you managed to get the property for around £175,000 this would give you great return of over 12%.
Monday 18 July 2016
Brilliant 5 bed house in Burley with over 10% return
This 5 bed terraced house set in the heart of Burley is in a prime location for professional renters. It's just off Burley Road which provides great links to the city centre. It's a short walk to plenty of convenience stores and is only a short distance from Cardigan Fields.
The property consists of 5 bedrooms and the kitchen, living room and bathrooms all look to have been recently done out so there's not a great deal of work, if any, that need to be done for it to be fully rented out.
The rents quoted in the advert are inclusive of all the bills but a property of this type in this great area could easily achieve a rent in the region of £350pcm per room without bills. If you managed to get the property for around £195,000 that would then give you a return of over 10% which would definitely be a great addition to your portfolio.
Monday 4 July 2016
Potential 12% Yield in Burley
This 6 bed house on Stanmore Street in Burley is in a fantastic location for both students and professionals. It's located a few minutes walk away from Headingley stadium and in the other direction it's a few minutes walk away to Burley Road and all it's main transport routes.
This is a very popular area and we have let many properties of this type in this area due to the high demand.
In it's current condition and with the varied room sizes it might be a struggle to let all the rooms but by investing in a refurb you could make this property really stand out and ensure a fully let property consistently and achieve around £2,210pcm.
Firstly, I would recommend altering the ground floor to convert this as the communal space with the living room and kitchen. I would then convert the large basement in to two bedrooms with a Jack and Jill bathroom. On the first floor where you currently have too many bedrooms squeezed in, I would suggest taking out the bathroom and toilet and create two larger bedrooms also with a Jack and Jill bathroom and you also have the option of installing another Jack and Jill on the top floor.
For the refurb you would be looking at spending around £30k which if you managed to managed to get the property for around £195,000 that would give you a fantastic return of nearly 12%.
If you would like any advice on buying a property to let, feel free to give me a call on 0113 2743488.
Thursday 16 June 2016
£160,000 inheritance - Is buying Burley Property still the best place for my windfall?
I had an interesting email from
someone in Burley a few weeks ago that I want to share with you (don’t worry I
asked his permission to share this with you all). In a nutshell, the gentleman
lives in Kirkstall, he is in his mid 60’s and still working. He has a decent
pension, so that when he does retire in a couple of years’ time, it will give
him a comfortable life. He had recently inherited £160,000 from an elderly
aunt. One option he told me was put it into a savings account. The best he
could find was a 2 year bond with the Post Office which paid 1.9%; meaning he
would get £3,040 in interest a year. One of his other options was to buy a
property in Burley to rent out and he wanted to know my thoughts on what he
should buy, but he had concerns as he didn’t want to take a mortgage out at his
time of life. He was also worried about all the tax changes he had read about in
the papers for landlords.
Notwithstanding the war on Burley landlords
being waged by George Osborne, the attraction of bricks and mortar endures for
many. As our man is a cash buyer, he would not have to deal with the intricate cut to mortgage interest tax
relief that will diminish, or even eradicate,
the profits of many Burley landlords. It’s true he would face the extra 3% in stamp duty to buy a second property, but with some good
negotiation techniques, that could soon be mitigated.
I told him that buying a Burley
buy to let property is all about the total return on investment. True, he could
put the money in the Post Office bond and receive his interest of £3,040 a year
or, as he rightly suggested, invest in property in Burley. The average yield (yield being the equivalent of the interest
rate on the property) at the moment in Burley is 4.41% per annum, meaning
our potential F.T.L (First Time Landlord) should be able to, depending on what
he bought in the area, earn before costs £7,056 a year. (However, I told him there are plenty of landlords in Burley earning
half as much again (if not more), if he was willing to consider more specialist
investment types of properties – again, if you want to know where – look at my
blog or drop me an email).
The bottom line is that the
success of investing in Burley buy to let property versus a savings account
with the Post Office (or whatever Bank or Building Society is offering the best
rate) will depend on the performance of those assets. Unlike with a savings account,
with property the capital you invested can also go up (and yes, it can go down
as well – more of that in second). Property values in Burley have risen in the
last twelve months by 3% meaning, that if our chap had bought a year ago, not
only would he have received the £7,056 in rent, but also seen an uplift of £4,800
…meaning his overall return for the year would have been £11,856 (not bad when
compared to the Post Office!).
..
but the doom mongers amongst you will say, property values can go down,
as they did in 2008, and in 1988 and 1979. Yes, but after 1979 prices had
bounced back to their ’79 levels by 1984 and went on to grow an additional 58%
in the following four years. Then again, they dropped in 1988 and did take 13
years to reach back to those ’88 figures, but the following six years (between
2001 and 2007) they then increased by an additional 66%. Now, according to the
Land Registry, average property values in Leeds currently stand 12.02% below
the January 2008 level, and anecdotal evidence suggests
that in the nicer parts of Burley, we are well above these sorts of levels.
Thursday 2 June 2016
Headingley’s ‘Generation Rent’ to grow by 1,672 households by 2021
The growth of the private rented sector, and the
arrival of an investor class of buy to let landlords within it, is an issue
that won’t be going away anytime soon, no matter what you read in the Daily
Mail. Whether you are a landlord of mine (or not as the case maybe), I am always
happy to look over any properties you are thinking of buying for buy to let
purposes and more so over a coffee!
Some commentators are saying buy to let is about to
die, with the new stamp duty changes and how mortgage tax relief will be
calculated. Some say 500,000 rental properties will flood the market nationally
in the next 12 months as landlords leave the rental market. Have you heard the
phrase ‘Bad news sells newspapers’? Let me explain why buy to let in Headingley
is only going in one direction – and not the direction the papers say they are
going.
According to Sheffield University, buy to let
landlords will continue fuelling the growth of the private rented sector in the
coming decades. By their estimates (and they are considered a centre of
excellence on the topic), the rate of homeownership nationally will fall to 50%
whilst the rate of private sector renting will increase to 35% by 2032. Although
in Headingley and LS6 area homeownership has already dropped below that
estimated 2032 national figure, with only 32% of properties being occupied by
homeowners ... as one would expect because of our high density of rental
properties, which interestingly, in Headingley and LS6 area, currently stands
at 48.1% today.
Therefore, the
demand for rental accommodation in Headingley and LS6 will grow by 1,672
households in the next five years ... and these are the reasons why,
irrespective of the distractions set out in the newspapers
Headingley property values over the last six years
have risen a lot more than average wages/salaries, meaning as homeownership and
mortgage availability is dependent on your ability to pay has served to push
home ownership further out of reach for many, at a time when the stock of
council houses has actually withered. (Nationally, the number of council
houses in the last ten years has dropped from 3.16m to 2.18m households - a
drop of 31.1%).
Now it’s true the Tory’s efforts to fix the deficiency
of affordable housing have focused on those who want to buy a home, ranging
from Help to Buy and their much vaunted Help to Buy Isa, and Starter Homes
Scheme, an initiative offering a 20% discount for first time buyers … but if
you are unable to save for the deposit ... none of this means anything to the ‘20
something’s’ of Headingley ... and they still need a roof over their
heads!
Currently, 25,282
people live in private rented accommodation in Headingley and LS6
These are big numbers and a sizeable chunk of the
electorate. So whilst it appears Headingley “Generation Rent” youngsters will
continue to rent and to not to buy for the reasons set out above, Headingley
buy-to-let landlords will be lifted by the projections of greater rental
demand. Headingley and the area around it still offers the prospect of strong
economic growth forecasts and has a reputation as a lively and desirable place
to live. You see, with the new rules on tax, more and more landlords will be
looking to move away from the previous honeypot of central London, because its
higher prices meant lower rental yields. With the new tax rules and central
London’s cooling of house price inflation, more and more landlords will look
further afield, including Headingley (interestingly, I have already been
chatting to a few central London landlords after they read the Headingley
Property Blog).
This prediction in growth of the Headingley rental
market is even on the back of the government clamping down on tax reliefs for
landlords. The point is this, gone are the days of making guaranteed returns on
BTL property. For the last 20 to 30 years, irrespective of which property you
bought, making decent money on buy to let property was like shooting fish in a
barrel – anyone could do it - but not now. You must take a more
considered approach to your existing and future portfolio, especially in
Headingley. The balance of capital growth and yield, especially in this low
interest rate world we live in, means Headingley landlords need to do more
homework to ensure the investment in property gives the desired returns.
Friday 27 May 2016
Only 54,122 Council Houses in the Headingley and Leeds area left – opportunity or problem?
The ‘Right
to Buy’ scheme was a policy introduced by Maggie Thatcher in 1980 which
gave secure council tenants the
legal right to buy the Council home they were living in with huge discounts.
The heyday of Council ‘Right To Buys’ was in the 80’s and 90’s, when 1,719,368
homes in the country were sold in this manner between October 1980 and April 1998.
However, in 1997, Tony Blair reduced the discount
available to tenants of council houses and the numbers of properties being
bought under the Right to Buy declined.
So what does this mean for Headingley homeowners and landlords?
Well quite a lot in fact!
Looking at the figures for our local authority, whilst the
number of ‘Right to Buys’ have dwindled over the last few years to an average
of only 217 ‘Right to Buy’ sales per year, one must look further back in time.
Looking at the overall figures, 20,476 Council properties were bought by council
tenants in the Leeds City Council area between 1980 and 1998. Big numbers by
any measure and even more important to the whole Headingley property market (i.e.
every Headingley homeowner, Headingley landlord and even Headingley aspiring
first time buyers) when you consider these 20,476 properties make up a colossal
10.9% of
all the privately owned properties in our area (because in local authority
area, there are only 186,467 privately owned properties).
Headingley first time buyers and landlords can now buy these ex-council
properties second hand (or the PC brigade like to call them ‘pre-loved ex–local
authority dwellings’) as those original 80’s and 90’s tenants (now homeowners) have
more than passed the time of any claw back of the discount they received (council
discount was repayable if the first owner sold within a stipulated time period -
usually 5 years).
Now let us all be honest, some (not all), but some ex-council properties
lack the vital KSA that some landlords crave. The new homes builders know all
about KSA (or Kerb-Side-Appeal) as they dress up the exteriors of their new
homes to make them more appealing to buyers ... and if
you don’t believe me ... why do Show homes exist? Going on the exterior looks
of a modern property might be a theoretically good way
of choosing a Headingley buy-to-let property, but in a challenging market, some
Headingley investors are finding a more no-nonsense down to earth approach
brings the largest returns.
Yes, the modern stuff being built in Headingley is lovely, but
too many landlords purchase buy to let property solely based on where they would
choose to live themselves, instead of choosing with a business head and
choosing where a tenant would want to live ... because remember the first rule
of buy to let property … you aren’t going
to live the property yourself. What an ex-council property lack in terms of
KSA, they more than make up for in other ways. Tenants more worried about how close the
property is to a particular school or family members for child care matter to
them far more than the look of a property.
Whilst ex-council properties tend to increase in value at a
slower rate than more modern properties, that is more than made up in the much
higher yields – and those built between the wars or just after are really well
built. Tenant demand for such properties is good since Headingley property
values are so expensive, a lot of people can’t get mortgages to buy, so they
will reconcile themselves to renting, meaning there is a good demand for that
sort of property to rent. Also, the very fact the council were forced to sell
these Headingley properties in the 80’s and 90’s, means that today’s younger
generation who would have normally got a council house to live in themselves,
now can’t as many were sold ten or twenty years ago.
One source of advice is the Headingley Property Blog... that just leaves the 54,122 council houses still owned by the local authority to be sold to their tenants in the coming years!
Friday 13 May 2016
Has owning a home become an unattainable dream for the 9,887 Leeds 28 year olds
My
parents bought their first house in the early 1980’s, they were in their early
20’s. Interestingly, looking at some research by the Post Office from a few
years ago, in the 1960’s the average age people bought their first house was
23. By the early 1970s, it had reached 27, rising to 28 in the early 1980’s.
This
year alone, 9,887 people in Leeds will turn 28 and 11,236 in 2017... and dare I
say 13,191 in 2018... year in year out the conveyor belt carries on... where
are the Headingley youngsters going to live?
Ask
a Headingley ‘twenty something’ and they will say they do not expect to buy
until they are in their mid thirties - seven years later than the 1980’s. Some
people even say they will never be able to buy a property and the newspapers
have labelled them ‘Generation Rent’ as they are people born in the 1980s who have no hope of getting on the property ladder.
One of the major problems facing young Headingley people is the large deposit
needed to get a mortgage... or is it?
The
average price paid for an apartment in Headingley over the last 12 months has
been £124,500 meaning our
first time buyer would need to save £6,225 as a deposit (as 95% mortgages have
been available to first time buyers since 2010) plus a couple of thousand for
solicitors and survey costs. A lot of money, but people don’t think anything
today of spending a couple of thousand pounds to go on holiday; the latest
iPhone upgrade or the latest 4K HD television. That amount could soon be saved
if these ‘luxuries’ were withheld over a couple of years but attitudes have
changed.
Official
figures, from the Office for National Statistics, show the average male in Leeds
with a full-time job earns £536.60 per week whilst the average female salary is
£445.20 a week, meaning, even if one of them worked part time, they would still
comfortably be able to get a mortgage for an apartment.
I was reading a report/survey commissioned by Paragon Mortgages
from the autumn of last year. The thing that struck me was that when tenants
were asked about their long term housing plans, some 35% of participating
tenants intend to remain within the rental sector and 24% intended to buy a
house in the future, with the proportion of respondents citing the “unaffordability”
of housing as the reason for renting privately increasing from 69% to 74%.
I also forecast that renting will continue to offer good value for money for tenants and recommend landlords pursue professional advice and adopt a realistic approach to rental increases to ensure that they are in line with inflation and any void periods are curtailed. One such place for advice, comment and opinion is the Headingley Property Blog
Monday 9 May 2016
3.0% rise in Headingley Property Values adds weight to the suburb’s Housing Crisis
Headingley’s
continuing housing shortage is
putting the suburb’s (and the Country’s) repute as a nation of homeowners
‘under threat’, as the number of houses being built continues to be woefully
inadequate in meeting the ever demanding needs of the growing population in the
suburb. In fact, I was talking to my parents the other
day at a family get together; the subject of the Headingley Property market
came up. My parents said it used to be that if you went out to work and did the
right thing, you would expect that relatively
quickly over the course of your career you would be buying a house, you would
go on holiday every year, & you would save for a pension. Now things seem to have changed.
Back in the Autumn, George
Osborne, used the Autumn Statement to double the housing budget to £2bn a year from April 2018 in an
attempt to increase supply and deliver 100,000 new homes each year until
2020. The Chancellor also introduced a series of initiatives
to help get first time buyers on the housing ladder, including the contentious
Help to Buy Scheme and extending Right to Buy from not just Council tenants,
but to Housing Association tenants as well.
Now that does
all sound rather good, but the Country is only building 137,490 properties a
year (split down 114,250 built by private builders, 21,560 built by Housing Associations
and a paltry 1,680 council houses). If you look at the graph (courtesy of ONS), you will see nationally, the
last time the country was building 230,000 houses a year was in the 1960’s.
How George is
going to almost double house building overnight, I don’t know, because using
the analogy of a greengrocers; if people want to buy more apples (i.e. houses) in a greengrocers’, giving
them more money (i.e. with the Help to
Buy scheme) when there's not enough apples in the first place doesn't
really help.
Looking at
the Headingley house building figures, in the local authority area as a whole,
only 1,510 properties were built in the last 12 months, split down into 1,350
privately built properties and 140 housing association with only 20 council
houses being built. This
is simply not enough and the shortage of supply has meant Headingley property
values have continued to rise, meaning they are 3.0% higher than 12 months ago,
rising 0.2% in the last month alone.
I was
taught at school that it’s all about supply and demand, this economics game. The demand
for Headingley property has been particularly strong for properties in the good
areas of the suburb and it is my considered opinion that it is likely to
continue this year, driven by growing demand among buyers (both Headingley
homebuyers and Headingley landlords alike). You see Headingley’s economy is quite varied, meaning activity
is expected to remain relatively strong into the early Summer of 2016,
especially as some Headingley buy to let landlords try to complete purchases
ahead of the introduction of new stamp duty rules in April.
... and of
supply, well we have spoken about the lack of new building in the suburb
holding things back, but there is another issue relating to supply. Of the
existing properties already built, the concern is the number of properties on
the market and for sale. The number of properties for sale last month
in Headingley was 253, whilst 18 months ago, that figure was 282 whilst three
and a half years ago it stood at 337… quite a drop!
Friday 29 April 2016
4,494 Spare ‘Spare’ Bedrooms in Headingley – Is this the cause of the Headingley Housing Crisis?
That isn’t a typo, of the 16,943 households in Headingley, 4,494 of
those properties don’t only have one spare bedroom, but two spare bedrooms! …
and it is this topic I want to talk about this week, my Headingley Property Market
Blog readers – because this could be the cure for Headingley’s housing crisis. The fundamental problem of the Headingley housing
‘crisis’, is the fact that the supply of homes to live in
has not historically met demand, increasing property values (and in turn rents),
thus ensuring home ownership becomes an unattainable ambition for the twenty something’s of Headingley.
Call me a realist, but it’s obvious that either demand needs to drop or
supply needs to rise to stop this trend getting worse for the generations to
come. Don’t get me wrong, I admire
Downing Street’s plans to build 200,000 starter homes which will be offered to first time buyers under 40
with a minimum 20% discount price. However, the
building of starter homes on current building sites, where new homes builders already
have to build a certain number of affordable ‘starter’ homes at the moment
under a different scheme, does not increase the stock of new ‘starter’ homes,
it simply replaces one affordable scheme with another.
One option that could resolve the housing crisis is if the Government literally
looked closer to home, concentrating on matching households with the
appropriate sized home.
In Headingley, 9,799 households have
one spare bedroom and of these, 4,494 have two or more spare bedrooms.
This compares to 957 households in Headingley that are overcrowded (i.e.
there are more people than bedrooms in the property).
Looking specifically at the homeowners of Headingley, 1,989 owner
occupied Headingley houses have one spare bedroom. Now having a spare bedroom is not considered
a luxury. However, in addition to those 1,989
households with one spare bedroom, there are on top, a further 2,522 owner
occupied Headingley households with two or more spare bedrooms.
Therefore, I am beginning to see there is the spare capacity in the Headingley
housing market. Principally, I will concentrate
on the group that makes up the bulk of this category, the owner occupiers of
large properties, in their 60’s and 70’s, where the kids flew the nest back in
the 80’s and 90’s. They call it
‘downsizing’, when you sell a big property, where the extra bedrooms are no
longer required, to move into a smaller and, usually, less expensive property.
However, there
are many explanations why these individuals do not downsize. These
people have lived in the same house for 30, 40 even 50 years, and as one
matures in life, many people do not want to depart from what they see as the
family home. Much time has been invested
in making friends in the area and it’s nice to have all those rooms in case every
grandchild decided to visit, at the same time, and they brought their friends! But on a more serious note, more and more
people are beginning to downsize earlier, but in my opinion, not at a fast
enough rate. As the years go one, we
will have a situation where younger families will be living in smaller and
smaller houses, whilst all the large houses with a couple of 70 something
empty-nesters rattling around them! I believe the
Government should put more weight behind downsizing, because with the right
incentives, many could be encouraged to think again and make the spare rooms
available.
.. and it would have to be incentives, as the using the stick (instead
of the carrot) would be political suicide for any party, especially the Tory’s. One option is to allow retired downsizers not
to pay stamp duty on the new property, saving them thousands of pounds and
another for the planners to work with builders to build not only starter homes
for under 40’s, but also have housing built just for retired downsizers ... or
is this one step too far in ‘social engineering’?
Monday 11 April 2016
Headingley House Price Monopoly: How do Prices vary?
Well as the nights draw in, if there is nothing on the
telly, the significant other and myself like to play the board game Monopoly. The
buying and renting of property, it’s like a busman’s holiday for me!
Interestingly,
the game was originally invented at the turn of the 20th Century (in
1903) and the game was initially called ‘The Landlord’s Game’! Anyway, after a few years in the wilderness,
the current owners of the game renamed it in 1935 and so began Monopoly as we
know it today.
So whether you are a homeowner or landlord in Headingley,
what would a Monopoly board look like today in the suburb? Property prices over
the last 80 years have certainly increased beyond all recognition, so looking
at the original board, I have substituted some of the original streets with the
most expensive and least expensive locations in Headingley today.
Initially, I have focused on the LS6 postcode only, looking
at the Brown Squares on the board, the ‘new’ Old Kent Road in Headingley today
would be Holborn Street, with an average value £88,100 (per property) and Whitechapel Road would be Woodbridge Vale, which
would be worth £91,000. What about the posh dark blue squares of Park Lane and
Mayfair? Again, looking at LS6, Park Lane would be Stretton Avenue at £420,648
and Mayfair would be Moorland Road at £542,800. However, look a little further
afield from the LS6 postcode, and such roads as Park Lane in Roundhay would
claim the Mayfair card at £629,250! Also, I can’t forget the train stations (my
favourite squares), and over the last 12 months, the average price that
property within a quarter mile of the station sold for was £127,300.
So that got me thinking what you would have had to have paid
for a property in Headingley back in 1935, when the game originally came out?
· The average Headingley detached house today is worth £345,700 would have set you back 625 Pounds 9 shillings and 6 old pence.
· The average Headingley semi detached house today is worth £253,800 would have set you back 459 Pounds and 4 shillings.
· The average Headingley terraced / town house today is worth £239,500 would have set you back 433 Pounds 6 shillings and 6 old pence.
· The average Headingley apartment today is worth £159,000 would have set you back 287 Pounds 13 shillings and 7 old pence.
Anyway, I hope you enjoyed this bit of fun, but underlying
all this is one important fact. Property investing is a long game, which has
seen impressive rises over the last 80 years. In my previous articles I have
talked about what is happening on a month by month or year by year basis and if
you are going to invest in the Headingley property market, you should consider the Headingley property
you buy a medium to long term investment, because Buy to let is pretty much
what it sounds like – you buy a property in order to rent it out to tenants.
Monday 4 April 2016
House in Burley with fantastic potential for 12% return
This fantastic 2 bed house on Woodside Place in Burley is on with Manning Stainton for a great low price of £95,000. It's positioned in a part of Burley that it much sought after for professionals with it's proximity to Kirkstall Road which has great links into the city centre.
From the looks of things, the place does need modernising. It will need a new kitchen, flooring, decorating and new furniture but with such a low asking price you'd still be making a good return on your investment.
What's more is that this property definitely has the potential to be made into a three bed. It currently has a very large living room in the basement that could easily be converted to a spacious third bedroom. You would then be able to utilise what is currently a large dining room next to the kitchen as the living room and you still wouldn't be compromising on space.
Houses providing this much space along with 3 large bedrooms in this area can easily achieve £1,050pcm. Even if you paid the asking price of £95,000 and spend around £10k doing up the place, you'd still be looking at a fantastic return of 12%.
With all of this potential I can guarantee it won't be on the market for long!
Friday 25 March 2016
Private Renting in Burley increases by 251.7% in 20 years
You find me in a
reflective mood today as I want to talk about the future of investing in
property in Burley. The truth is that we have got complacent, with many people
having mistaken the ever rising Burley (and in fact the whole of the UK)
property market since the 1960’s as the eternal gift that kept giving as
property prices constantly rose and doubled every five to seven years.
The days of making money from property
as easy
as falling off a log, like taking candy
from a baby are sadly over
Whilst George Osborne has
decided now is the time to milk the ‘Golden Cow’ of 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 with these changes. You see,
I have always seen investing in the Burley 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
proverbial 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 wouldn’t be afraid of this change... because
as a famous French proverb says, (I told you I was a reflective mood today), ‘the
more things change, the more they stay the same’. I mean, no one could have predicted how the
property market has changed in Burley over the last couple of decades? Looking
specifically at the Leeds West Parliamentary Constituency, twenty years ago,
19,618 households (meaning 52.86% of property) was owned and only 1,853
households were privately rented (meaning 4.99% of property was rented out by
private landlords). Roll the clocks on twenty years and the change has been
seismic …. Now only 21,185 of properties in the Constituency are home-owners (a
drop to only 51.48% being owner occupied) and the jump in private renting has
been out of this world, as 7,223 properties are now privately rented proportionally
17.55%). (NB Neighbouring Constituencies show similar changes as well)
Who would have predicted in 1995 the
private rental sector in
Burley would have grown by 251.7% 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 (ie between 1995 and 2015), they might have
predicted similar growth to the growth experienced over the previous 20 years (ie
between 1975 and 1995), which was a very impressive 351.55%. Yes, property
values in Burley have increased over the last 20 years (between 1995 and 2015),
but by a more modest 133.99% (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 for too long has been heavily dependent
solely on house price growth, where yield has been almost forgotten. I see the changes in tax and landlord and
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
benchmarks, your approach to financing or even consider places other than
Burley in which to invest your money, but this will shine a light on investing
in properties with healthier yields and create more realistic long term buy to
let opportunities, instead of short term growth bets and wagers.
Friday 4 March 2016
Fewer people are moving house in Headingley
Well the dust has settled and the General Election seems a
distant memory, we can get back to a more normal property market, or that is
what the London
based ‘Fleet Street’ journalists would lead you to believe. You see I have been talking to many fellow
property professionals in Headingley (solicitors, conveyancers and one the best
sources of info – the chap who puts all the estate agent and letting boards up
in Headingley, and all of them, every last one of them told me they didn’t see
any change over April in business, compared to any other month on the lead up
to the Election itself.
I am now of the
opinion that maybe in the upmarket areas of Mayfair and Chelsea, the market
went into spasm with the prospect of a Labour/SNP pact with their Mansion Tax
for properties over £2,000,000, but in Headingley and the surrounding villages,
there has only been one property sold above £2,000,000 mark in the last 7
years.
In a nutshell, the General Election in Headingley didn’t
really have any impact on people’s confidence to buy property. As I write this article, of 147 properties
that have come on to the market in Headingley since the 2nd of
April, 60 of them have a buyer and are sold subject to contract, that’s nearly
one in three (40.82% to be precise).
I think that things are starting to change in the way people
in Headingley (in fact the whole of the country as I talk to other agents
around the UK) buy and sell property. Back
in the 1970’s, 80’s and 90’s, the norm was to buy a terraced house as soon as
you left home and do it up. Meanwhile,
property prices had gone up, so you traded up to a 2 bed semi, then a 3 bed
semi and repeated the process, until you found yourself in a large 4 bed
detached house with a large mortgage.
Looking into this a little deeper like I have said in
previous articles Headingley people’s attitude to homeownership itself has changed
over the last ten years. The pressure
for youngsters to buy when young has gone as renting, not buying, is considered
the norm for 20 something’s. This isn’t just a Headingley thing, but, a
national thing, as I have noticed that people buy property by trading up (or
down) because they need to, not because ‘it’s what people do’. This does means there are a lot less
properties on the market compared to the last decade.
A by-product of less people moving is less people selling
their property. My research shows there are a lot fewer properties each month
selling in Headingley (Pudsey) compared to the last decade. For example, in February 2015, only 35
properties were sold in Headingley (Pudsey). Compare this to February 2002, and
45 properties sold and the same month in 2004, 69 properties. I repeated the exercise on different sets of
years, (comparing the same month to allow for seasonal variations) and the
results were identical if not greater.
So what does this all mean?
Demand for Headingley property isn’t flying away, but with fewer
properties for sale, it means property prices are proving reasonably stable
too.
Stable, consistent and steady growth of property values in Headingley,
year on year, without the massive peaks and troughs we saw in the late 1980’s
and mid/late2000’s might just be the thing that the Headingley property market
needs in the long term.
Subscribe to:
Posts (Atom)