Friday, February 17, 2017

24 South Ockendon Households Occupied by OAP Renters


Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the Country that are occupied by people aged 65 and older, meaning 4.39% of OAP’s are living in private rented property.

It got me thinking two things. How many of these OAP’s have always rented and how many have sold up and become a tenant?  In retirement, selling up could make financial sense to the mature generation in South Ockendon, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy to let landlords of South Ockendon?

The Prudential published a survey recently that said nearly six out of ten OAP renters had never owned a home.  Two out of ten OAP renters were required to sell up because of debt, just about one in ten OAP renters sold their property to use the money to fund their retirement and the remaining one out ten OAP renters, rented for other reasons.

Funding retirement is important as the life expectancy of someone from South Ockendon at age 65 (years) is 18.1 years for males and 20.5 years for females (interesting when compared to the National Average of 18.7 years for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature people of South Ockendon.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of South Ockendon?  Of the 1,658 households in South Ockendon, whose head of the household is 65 or over, not surprisingly 1,060 of households were owned (63.93%) and 547 (32.99%) were in social housing.  However, the figure that fascinated me was the 24 (1.45%) households that were in privately rented properties.

Anecdotal evidence, by talking to both my team and other South Ockendon property professionals is that this figure is rising.  More and more South Ockendon OAP’s are selling their large South Ockendon homes and renting something more manageable, allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder), invested in plans that produce a decent income and while living the life they want to live.

These South Ockendon OAP renters know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being an OAP - the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn't leave family members panicking to sell the property to fund care-home fees.


South Ockendon landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.  Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!

Regards

Paul

Wednesday, February 15, 2017

“Might Sell, Might Not!”



The press is currently full of mixed messages about the property market, especially following the Brexit debate. Will it rise, will it fall, is it a good or a bad time to move? Fortunately we have remained extremely busy, and find ourselves in need of stock to support this demand.

Such demand may well be the best indicator of the future of the market than any other indicator. People don’t buy unless they feel confident about the future. At this point in time we are in the transitional stage between a Brexit decision having been made, and actually leaving the EU. The real effects of leaving may not actually be felt for some years. Nevertheless, nobody knows what lies around the corner there could be some volatility in store, with potential knock-on consequences to confidence levels. Fortunately interest rates have fallen to virtually zero, but what effect a 0.25% eventual rise would have on the national mood is hard to predict.

So if you think that you might consider moving in the next year or two, it might be worth bringing that decision forward to take advantage of the strong demand we currently have. By selling for the highest price the market will currently pay you’d not only maximise your sales price, but you’d also put yourself in a strong buying position when you come to look for your next home. Worth a thought!

A good starting point would be to ask us to provide you with an estimate of your property’s maximum expected price and saleability in the current market which we’d be happy to do without charge. Please feel free to call us on 01708 851999.

Regards

Paul

Ps If you want to have a chat about your moving requirements, then why not give me a call on 01708 851999



Tuesday, February 14, 2017

“Save Time by Helping your Estate Agent”


Buyers often waste an inordinate amount of time viewing property that is either too expensive or blatantly wrong in other critical ways.   

Additionally, more than 30% of UK property-sales fall through due to buyer or seller suddenly changing their minds. Both these annoyances could be attributed to the agent not having gained a good understanding of buyer/sellers requirements, and/or not having earned the trust required to secure this understanding.

One way of overcoming this is for the seller to address a few fundamental issues prior to agreeing terms, which will help avoid false starts, additional expense and wasted time. Here are a few suggestions: 


  1. Ensure that you get your finances in order and know exactly how much you can borrow, with an “in principle” agreement from your lender.
  2. Before viewing properties understand the difference between your preferred “wants” and absolute “needs”.
  3. Locations can vary from one street to the next, and at different times of day. Consider school runs and pub times.
  4. Do not make an offer on a property unless you are absolutely serious about making it your home. The seller’s expectations will be raised and you could damage your reputation as a genuine purchaser.
  5. Don’t lie about your home. Be upfront about any defects or the reason for moving if you are to speed up the sale and reduce stress.
  6. Don’t ignore the facts. If your home has been on the market for several months, it is likely to be overpriced. Promptly reposition it in the market before it goes stale.
  7. If you’re unhappy with your agent – say so! Don’t be afraid to change agents, being careful to note any onerous contract terms, and don’t change more than once, or people with think it’s the property – not the agent!


Please feel free to call us on 01708 851999 if you would like further advice on how to prepare your home for an efficient sale.   

Regards

Paul

Ps If you need any assistance either purchasing  or selling  property, why not give me a call on 01708 8851999 or email me paul@mpestates.co.uk

Friday, February 10, 2017

With 13,197 people in Private Rented Properties in Grays - Should you still be investing in Grays Buy To Let?



If I were a buy to let landlord in Grays today, I might 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, Brexit has caused a tempering of the Grays property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Grays property prices do drop, the downside to that is that first time buyers could be attracted back into the Grays property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Grays landlord, almost a blessing in disguise.

Grays has a population of 66,620 so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Grays - Accommodation Type and the Number of Occupiers
Owned outright - Grays
Owned with a mortgage - Grays
Shared ownership (part owned and part rented) - Grays
Social rented (aka Council Housing) -  Grays
Private rented - Grays
Living rent free - Grays
11,505
33,205
455
7,885
13,197
373
17.3%
49.8%
0.7%
11.8%
19.8%
0.6%

Yields will rise if Grays 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 Grays landlords add to their portfolio. Rental demand in Grays is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Grays landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s nephew and his partner.  Both are in their mid/late twenties, both have decent jobs in Grays 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 40 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 19.8% of Grays 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 Grays – 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!


For more views and opinions on the Grays Property Market – visit the Thurrock and South Ockendon Property Market Blog 

Regards


Paul

PS For more views and opinions on the Grays Property Market – visit the Thurrock and South Ockendon Property Market Blog or if you want to have a chat about your next buy to let property give me a call on 01708 851999 or email me at paul@mpestates.co.uk

Sunday, February 5, 2017

“Moving House”


“Moving House” may be the term we commonly use, but moving HOME is surely a better description for one of life’s more stressful experiences. Few changes in life, other than a relationship, can stir such emotions.

As estate agents, we are effectively “agents of change” and whilst our natural focus might be to help people move in a practical sense, we find we can be most effective when we really empathize with our clients.

It would be callous to think that a home is just bricks and mortar. Home is so much more than that…

Home:
·        Is the focus for our sense of place
·        Is the sanctuary that protects us from the sheer noise of life
·        Is where our real self resides and where we can genuinely relax
·        Is where our relationships both blossom and are tested
·        Is where we unharness our emotions and can laugh or cry, unjudged
·        Is the safe place where family is conceived and nurtured
·        Is the root of our most precious past and future memories
·        Is an expression of who we really are

Inevitably, the bricks and mortar element of home will usually reach the end of its useful life as we ourselves move on. It will then be time for the next occupant to regard “your house” as “their home”.

We often note how “similar” a buyer is to the seller of the new home. If people move in seven-year cycles then it is reasonable to assume that the next occupant may well be in the same stage of life as the outgoing seller was seven years ago. They are also very likely to be a strong socio-demographic match to the area into which they are moving.  


We believe that it is our ability to understand our buyers’ preferences, lifestyle expectations and aspirations that has been a key component to our success in matching match people to property. Finely attuned? -Maybe. Effective? -Certainly. Why not call us for an initial chat if you have any thoughts about moving and let us show you how a more connected approach to helping people move can pay real dividends.   

Friday, February 3, 2017

Thurrock Unemployment Drops to 4.9% and its effect on the Thurrock Property Market


It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, eight months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is yes and no.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Thurrock are 0.92% up month on month, yet the month before that, they had decreased by 0.41% – so is this the time to panic and run for the hills?

Doom and Gloom then? Well, let me consider the other side of the coin.

Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Thurrock property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Thurrock property values dropped by an eye watering 2.02% in April 2012 and 0.85% in February 2015 – and no one batted an eyelid then.

You see, property values in Thurrock are still 16.83% higher than a year ago, meaning the average value of a West Thurrock property today is £214,400. Even the shares of those new home builders Barratt have increased by 43.3% since early July and Taylor Wimpey’s have increased by 37.3%. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years - but only slightly.

The Thurrock housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Thurrock Borough Council area stands at 4,100 people (4.9%), which is considerably better than a few years ago in 2012 when there were 7,700 people unemployed (9.5%) in the same council area.

However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!


Forget Brexit and yes inflation will be a thorn in the side – but the greatest risk to the Thurrock (and British) property market is that there are simply not enough properties being built thus keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t! In the coming weeks in my articles on the Thurrock Property Market, I will discuss this matter further! 

Regards

Paul

Monday, January 30, 2017

Market report – January 2017



Whilst many of us might have understandably had quite enough of Brexit/Trump inspired news, there is one aspect of these that is extremely reassuring in respect of the UK property market! Such tumultuous news, almost daily, with so many angles and such far-reaching political, economic and social consequences, might ordinarily cause such uncertainty as to put a dampener on the property market. People and markets generally don’t like uncertainty. And we probably live in the most uncertain times in a generation.

Yet the property market appears to have simply shrugged its shoulders, kept calm, and carried on, as if to spite the dire warnings of severe negative consequences issued by even the most respected of pundits. The exception is of course the prime central London market, which has dipped 6.9% since this time last year although this is more likely due to with the massive hike in SDLT last year. If anything, the lower value of sterling has attracted overseas buyers, preventing further falls, although sales volumes of £1m+ sales are nevertheless down by around 21% (Savills).

Whatever the future holds, it would seem that bricks and mortar, as ever, are the ultimate foundation of our security in the UK, and demand is predicted to continue to outstrip supply overwhelmingly for many years to come. Our current levels of GDP growth are impressive (0.7% last quarter, up from 0.6%) but are forecast to fall, with pressures on employment, inflation and ultimately interest rates. So there is only so much the market can take in terms of property values and equilibrium has to be found at some stage.  

So if you are considering a move this year, right now might not be a bad time to do so – especially if you can put your property on the market ahead of the seasonal spring rush that can temporarily flood the market.

Please feel free to contact us if you’d like sincere, friendly, advice from your local property marketing experts and we’d be delighted to offer you our thoughts – you might be pleasantly surprised.


Regards

Paul

Ps Hope you all have a good Monday!

Sunday, January 29, 2017

£7.23bn – The total value of all Grays Property Market


“How much would it cost to buy all the properties in Grays?”

This fascinating question was posed by the 11-year-old son of one of my Grays landlords when they both popped into my offices before the Christmas break (doesn’t that seem an age away now!). I thought to myself, that over the Christmas break, I would sit down and calculate what the total value of all the properties in Grays are worth … and just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2005.

In the last 11 years, since the autumn of 2005, the total value of Grays property has increased by 52% or £2.47 billion to a total of £7.23 billion. Interesting, when you consider the FTSE100 has only risen by 30.78% and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11 years.

When I delved deeper into the numbers, the average price currently being paid by Grays households stands at £251,870.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Grays; the average numbers come out like this ..

Grays Property Market
Average Value of a Detached Property
Average Value of a Semi-Detached Property
Average Value of a Terraced/Town House Property
Average Value of an Apartment
£427,714
£309,999
£258,758
£184,028

... yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are so expensive, when you compare them with the much cheaper terraced/town houses and semi-detached houses, you can see detached properties are not a match in terms of total pound note value of the terraced/town houses and semi-detached houses.

Total Value of all the Grays Detached Properties
Total Value of all the Grays Semi-Detached Properties
Total Value of all the Grays Terraced/Town House Properties
Total Value of all the Grays Apartments
£1,590,668,366
£2,353,512,408
£1,879,618,112
£1,405,237,808

So, what does this all mean for Grays?  Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Grays remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.


Grays house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth.  Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Grays not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Grays has always, and will always, ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2017 Grays Property Market. As always, all my articles can be found at the South Ockendon Property Market Blog 

Friday, January 27, 2017

“Time for You”



Selling your property is easy. Just advertise it on line and wait for the buyers to flock to your door!! If only!    

Sadly, too many estate agents rely on this approach, which inevitably results in disappointment. Indeed, in some respects finding the buyer is the easy bit. But, when you think about it, there is far more to moving than simply finding a buyer.

At the refreshingly different estate agency M&P Estates , we believe in helping you move, and this means going far beyond the service offered by most estate agents. It all starts with the amount of time, commitment and personal accountability that we invest in our valued clients.

We won’t simply rush in, measure up, stick pictures of your property in our window and hope for the best. We will take the time and trouble to understand all relevant aspects of your situation and then we will work with you to achieve what you want. This may well be the highest price possible, the fastest sale, the most discreet sale, the “right” person for your treasured home, or you may simply want to dip your toe in the water and test the market.   

Whatever your motivation to market your property, we understand, we’re highly flexible, and we’re on your side.    

Additionally, as we are independent of any corporate influence, we are not here to sell you any associated products, although mortgages and conveyancing services are of course available if you need them, and we’re prepared to invest as much time as you require from us. We even give our clients our mobile telephone number and the reassurance that if you want to talk – we’ll be there.

Why not call us on01708 851999 and arrange an informal chat. You’ll find we take the time to listen, understand and support your move wherever we can.  

Regards

Paul

Ps have a good weekend!

Monday, January 23, 2017

“Holding the Sale Together”


It is well documented that, nationally, around 30% of all sales arranged fail to reach a successful exchange of contracts. Fortunately, our completion rated over the last 12 months has been 97% even taking into account Brexit!

However, the sales cycle can be frustratingly slow and the longer the sale takes, the greater the chance of it falling through. This makes it particularly important that your estate agent handles your sale with kid gloves. So we typically advise our sellers as follows:

·        Preparation – Make sure your solicitor has called for the deeds and prepared a draft contract in anticipation of finding a buyer.

·        Be serious - Only accept a serious offer. Does the buyer have anywhere to sell, a mortgage agreed in principle and a solicitor lined up? Ask to see details. A serious buyer will be prepared and won't want to delay.

·        Don’t accept an offer exclusively from someone with a property to sell. By doing so you limit the saleability of your property to the saleability of theirs, and you lose control.  

·        Bridge – Bridging finance can provide a solution if you are caught between selling and buying. It is effective but costly and risky, so think carefully before entering into any agreement.

·        Ask your solicitor about pre-contract agreements, which can bind the purchaser to buy prior to exchange, subject to certain provisions, much as they use overseas. You can even take a deposit from the purchaser to guard against them pulling out or renegotiating.

At M&P Estates, we pride ourselves on our ability not only to deliver buyers to your door – but, more importantly, to make sure that your sale sticks! So you’ll find our agents don’t just walk away once the deal is done, but are fully involved in the whole sale process and will hang in there with you until the day you move.


Currently, we are able to get to exchange of contracts within 6 to 8 weeks of the sale being agreed. So why not give us a call on 01708 851999 and let us help you move!


Regards

Paul

Ps When engaging an Estate Agent always make sure of their terms of business and ask lots of questions!

Thursday, January 19, 2017

“Are You Getting Enough?”

Most buyers use the internet in their search for a home, so you need to be sure that your property is found and promoted quickly and easily. It is therefore important that your agent subscribes to the most effective property portals because this is how buyers are directed to your property.  

Many property portals have come and gone over recent years and whilst a few specialist portals remain the overall market is controlled by two giants, Rightmove and Zoopla. Each has so much coverage that many buyers don’t always feel they need to use both, especially as they become familiar with the workings of one or the other and they subscribe to their preferred site’s “mailing list”.

When selling your property, it is therefore really important to choose an agent that subscribes to BOTH Rightmove AND Zoopla. It means that your own property is much more likely to be found on search engines such as Google. Indeed, your estate agent’s own website is also more likely to rank highly if it also has links to more than one portal.

Your agents’ role is to maximise your exposure and harness response, leading to a faster sale where competition between buyers pushes your price to the max.

When selling your home, it is critical that you get it right, first time, so we’ve never held back when it comes to embracing the efficiencies of effective online technology. With M&P Estate Agents you can feel secure in the knowledge that your property will absolutely be exposed to the very maximum number of suitable buyers available. And more buyers means a faster sale at a higher price. That’s what we do!  

Regards

Paul



Thursday, January 12, 2017

South Ockendon Property Values increase by 2.85% ... good or bad news?

 “How's the South Ockendon housing market doing?” asked an upbeat South Ockendon landlord last week.  “Quite strange”, I replied. Our landlord was perplexed! Let me explain...

Even the Brexit vote has not hindered South Ockendon’s steady rise in property value, as South Ockendon property values went up 2.85% last month alone, leaving South Ockendon values 20.62% higher than a year ago. An increase in demand from buyers and an uninspiring level of supply (i.e. the number of properties on the market) has driven up the value of the South Ockendon’s housing.

...And that is where the issue is. With Brexit, the coalition of the 2010-15, a double-dip recession and post credit crunch fallout – I was perplexed that the South Ockendon property market (and values) has remained so strong, still 29.6% higher than 20 months ago. That is until you start to look into the real reasons why we find ourselves in such a great place.

The South Ockendon (and the UK) housing market is built on the foundations of basic economic rules that any GCSE Economics student should understand. However, at a time when, as a country, we seem eager to uncouple ourselves from all manner of proven facts, anything is up for grabs.

Even the wary RICS said throughout the UK, most of its Chartered Surveyors anticipated house prices to increase in the next six months, which seems contradictory given economic cautions from Mr Hammond and HM Treasury. Even though inflation will rise to around 2% to 3% in 2017 and perhaps a little more in 2018 because of Sterling’s devaluation, together with a high probability of a decelerating GDP and a slight rise in unemployment, how can the RICS and most of my landlords be so confident about the value of our homes?

Well, look at from where we are starting. Nationally, a base of low unemployment, low inflation and preposterously low interest rates, while in South Ockendon, the local economy is doing quite well for itself. Confidence also plays a part. Confidence can supersede basic economic facts for a short time at least, which is why actual property market changes tend to be more exaggerated, as confidence can turn both positive and negative very quickly. The fact is, there is a long-term relationship between property values, wages and unemployment. For example, looking at the graph below, you can quite clearly see the ratio of property values to earnings is nowhere near as high as it reached in 2008 and currently is in the middle of the range for the last 30 years. As a country, we are in a good place.

By April 2017, Article 50 will be invoked. This will bring additional political tomfooleries and economic ups and downs. With both purchasers and vendors predisposed by the 24-hour news cycle, which let’s face it, gets more haphazard by the day, it is likely to prove a challenging couple of years … and yes, South Ockendon property values might drop slightly in 2017, but based on what we know of the UK plc now, the UK and South Ockendon property values are not projected to move that much over 2017 or 2018.  Going into the next two years, we are in much better financial shape as a country compared to the last two crashes of 1987 and 2008.


But, on the other side of the coin, what we also know is that we don't know much about the form of our economic future or indeed many other facets of our lives. Confidence will continue to be the key player in the South Ockendon housing market for a while longer - yet this may spur some much needed second-hand market activity? Now, where is my crystal ball?

Regards

Paul

Ps on a three day seminar in London at the moment - didn't realize how packed the trains could be at 6.30 in the morning

Wednesday, January 4, 2017

Average Rent Paid by Tenants in South Ockendon rise to £1,013 per month


Back in the Spring, there was a surge in South Ockendon landlords buying buy to let property in South Ockendon as they tried to beat George Osborne’s new stamp duty changes which kicked in on the 1st April 2016. To give you an idea of the sort of numbers we are talking about, below are the property statistics for sales either side of the deadline in RM15.

Jan 2016 – 23 properties sold
Feb 2016 – 37 properties sold
March 2016 – 69 properties sold
April 2016 – 46 properties sold
May 2016 – 58 properties sold

Normally, the number of sales in the Spring months is very similar, irrespective of the month. However, as one can see, this year was a completely different picture as landlords moved their purchases forward to beat the stamp duty increase. You would think that even with a basic knowledge of supply and demand economics, rents would be affected in a downwards direction?

However, there appears to be no apparent effect on the levels of rent being asked in South Ockendon - and more importantly achieved - and this direction of rents is not likely to inverse any time soon, particularly as legislation planned for 2017 might reduce rental stock and push property values ever upward. The decline of buy to let mortgage interest tax relief will make some properties lossmaking, forcing landlords to pass on costs to tenants in the form of higher rents just to stay afloat. Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.

.. but it’s not all bad news for tenants. Whilst average rents in South Ockendon since 2005 have increased by 18.6%, inflation has been 38.5% over the same time frame, meaning South Ockendon tenants are 19.9% better off in real terms when it comes to their rent (which is a sizeable chunk of most people’s monthly household budgets)

Year
Average Rent in South Ockendon per month
2005
854
2006
878
2007
897
2008
922
2009
927
2010
914
2011
930
2012
946
2013
953
2014
962
2015
985
2016
1013


I found it particularly interesting looking at the rent rises over the last five years in South Ockendon, as it was five years ago we started to see the very early green shoots of growth of the South Ockendon economy.  As a whole, following the Credit crunch (2011), rents in South Ockendon have risen by an average of 1.9% a year – fascinating don’t you think?

The view I am trying to portray is that while renting is often portrayed as the unfavorable alternative to home ownership, many young South Ockendon professionals like renting as it gives them adaptability with their life. Rents will continue to rise which is good news for landlords as buy to let is an investment but, as can be seen from the statistics, tenants have also had a good deal with below inflation increases in rents in the past. It’s a win-win situation for everyone although on a very personal note, it’s imperative in the future that tenants are not thwarted from saving for a deposit by excessive rental hikes – there has to be a balance.


Regards

Paul

PS. If you are looking for advice or a second opinion on a buy to let property why not sent me the URL link and I will give you my impartial opinion to buy or not to buy!