Maidenhead Property Values 11.6% higher than a year ago

Maidenhead property values rose by 1.7% last month, meaning they are 11.6% higher than 12 months ago. Overall, I expect future property price growth to remain firm, built on the foundations of an improving labour market, strengthening economy and very low mortgage rates. In fact, talking to a number of other agents in the city, mortgage arrangers and solicitors (all of whom have their direct finger on the pulse of the Maidenhead property market), the steady long term growth in Maidenhead property prices tied in by strong demand conditions so far this summer, alongside an underlying lack of supply and the continued low mortgage rate environment, means the slow but steady upward momentum of the Maidenhead property market is likely to continue in the second half of 2015.

However, there are a couple points I wish to highlight as all my blog readers will know, I like to give a balanced and honest opinion of what is happening in the Maidenhead property market.  The two main points being low interest rates and a lack of supply of property.

Interest rates first - Mark Carney (Chief of the Bank of England) said in a speech a few weeks ago at Lincoln Cathedral, the Bank will be seriously considering raising interest rates around Christmas time. An upward movement in interest rates will temper demand and result in a marked slowdown in house price growth. Mr Carney said that only six out of ten people that had a mortgage (57% to be exact) had a variable rate mortgage, compared with more than seven out of ten people (73% to be exact) in the Summer of 2012. Now I am not a mortgage arranger and cannot give advice, but rates are only going on one direction, so whether you are a landlord or homeowner, this might be a time to consider fixing your mortgage rate?  Don’t say I didn’t warn you!

Tie this in with the stricter mortgage lending rules which were introduced in 2014, which affected people’s ability to have larger mortgages, this means homeowners will need to be realistic in their pricing if they want to sell. Reading other recent reports though, property owners have continued to pay off mortgages at a faster rate while mortgage rates have been low. Therefore, when mortgage rates rise, the affect on home movers sentiment which, given the shortage of supply, would result in a marked slowdown in the rate of house price growth.

Shortage of Supply – As I have mentioned in previous articles, the number of houses on the market in Maidenhead is at an all time low. One reason is the large number of buy to let landlords who have bought Maidenhead property over the past fifteen years. Unlike first time buyers who tend to move on after a few years, landlords tend to keep their properties long term, meaning there are less properties coming onto the market ... thus restricting supply and sales. In fact over the last four months, only 653 properties in the Windsor and Maidenhead Borough Council area have changed hands and sold, compared to 737 in the same time frame in 2014, a not so insignificant drop of 11.4%. 

Rutland Road, Maidenhead - 4 Bed Semi - Nice Family Home!

This place could make a great family home, admittedly the front garden needs a bit of a prune, but that aside this is a fantastic place for all those with a mid-range budget looking to set up camp in Maidenhead. You tend to get a bit more for your money around the Boyne Hill area and for £625K this looks like a decent place. With house prices constantly going north (11% in the last 12 months), then you can expect this to be a good little investment! 

Its on with Braxtons, take a look a the link below for more info!

http://www.rightmove.co.uk/property-for-sale/property-36613107.html?premiumA=true

Bell Street, Maidenhead - 2 Bed Terrace - One for the investors!

Good evening! Anything that comes to the market on Bell Street I have just have to bring to your attention. I think this area is really going to reap the rewards with Cross Rail and the planned improvements to the town centre.

In order to get full value on this one and get them tenants fighting over each other to get first dibs, I would seriously think about getting this spruced up a bit and get a few mod cons in.....then you can just sit back and watch this rent out year on year.

Its on with Haart for £355K.....GET ON THAT PHONE QUICK!

Click here for more details....

http://www.rightmove.co.uk/property-for-sale/property-35832654.html?premiumA=true

Waltham Road, Woodlands Park - 3 Bed Detached - Potential for growth!

Today we are heading to the White Waltham area.....maybe this place is not so much for the landlords but I think will gain some interest from the owner occupiers. It does need some work and modernising here and there but what I like is that it is set in a nice size plot with various outbuildings that offer real potential for further development. 

Its on the market with Mark Carter for £500K.....probably worth taking a look to see how this asking price stacks up with all the updating that is required!

http://www.zoopla.co.uk/for-sale/details/38184591

My concerns about the Maidenhead Property market

I am genuinely concerned about the Maidenhead property market, but in a way that might surprise you.  Rightmove announced that average ‘asking prices’ fell last month by 0.4% in the South East, leaving them 5.8% higher than a year ago.  Whilst it could be said that monthly change is very modest, in the same period a year ago, we saw a monthly fall of 0.6% in the South East, which is more the norm given that have the schools had broken up and everyone was going on holiday.

Looking at all the data on the Maidenhead property market; putting aside the need for more houses to be built in the next decade to balance out the increase in population (helped in part by inward European migration) but not matched by a similar increase in housing being built; my research shows there is a widening gap between what property buyers want and what is available to buy. In a nutshell, many more buyers are looking for the smaller one and two bed properties (the typical semi detached and smaller terraced houses/apartments), whilst there is an oversupply of the four and five bed properties, which are the typical large detached properties available.

Demand for smaller properties comes from both first time buyers and the growing number of buy to let landlords, where it is more cost effective and efficient to buy smaller properties to let out compared to larger properties which tend to offer poorer returns.  Also, landlords with larger loans (on those larger more expensive properties) will also be hit harder with the changes in the way tax is paid on buy to let investments, which starts in 2017.

If you recall, a few weeks ago I did some research on how different types of properties had performed in Maidenhead since the year 2000.  I revisited those calculations and it hit me how different types of properties had performed over the last 15 years.  In a nutshell, this mismatch of demand and supply isn’t a new phenomenon, it’s been happening under our noses for years!

In the last 15 years, the average terraced house in Maidenhead has risen in value from £154,260 to £379,086 whilst the detached house has risen in value from £326,598 to £675,820.  Nothing seems amiss until you look at the percentage growth.  The terraced has grown in value by 146% whilst the detached by only 107% meaning the gap between the inexpensive terrace’s and expensive detached properties has in percentage terms narrowed enormously (this isn’t just a Maidenhead thing, it has happened all across the Country).

I am concerned because more houses need to be built, not only in Maidenhead, but in the South East and the UK as a whole.  In particular, there is specific need for more affordable starter homes for the growing demand from both tenants (and the landlords that will buy them) and first time buyers.  The Tories need to face up to the fact that unless they can get the builders, the planners (to release more building land), the banks (to finance it) and themselves together, to ensure long term plans can be made, and implemented, this issue will continue to worsen.

The country needs 200,000 houses a year to be built to keep up with demand, let alone reverse the imbalance between demand and supply.  Last year, only 141,040 properties were built, the year before 135,510 and 146,850 in the year before that.  This means only one thing for Maidenhead landlords.  Unless David Cameron starts to rip up huge swathes of the British countryside and build on acres and acres of green belt, demand will always exceed supply when it comes to property for the foreseeable future.

Therefore, investment in the local Maidenhead Property market as a buy to let investment could be the best move to make as the stock market investments are possibly on the wane. Everyone is different and trust me, there are many pitfalls in buy to let. You must take lost of advice and seek out the best opinion. 

Ray Park Road, Maidenhead - Care Home Conversion - Top End Investment Opportunity

Hello everyone! You will need to do your homework on this one, but this could be quite an opportunity for any investors who are in a position to turn around this former care home. Its been marked jointly by Carson & Co and John D. Wood & Co and is going to auction with a price of around £910K - From the few pictures we can see I would fully expect that this would go for much more than this when the hammer comes down!

Have a look at the link below, but you really need to getting viewing to see what what you are up against with this one......would be a gold mine at the right price!!

http://www.zoopla.co.uk/for-sale/details/38102814

Malders Lane, Maidenhead - 2 bed cottage - Great Potential!

Good evening, I try and provide you with a bit off variety and I think this place certainly does that! Its just come on the market with Roger Platt for £310K - Usually I can give you an indication on whether a property is a good investment or not? To be honest I think this one needs a bit more investigation.....but as potential investment opportunity I think I might be worthwhile making a few enquires! Its really unique and not very often that you find a cottage like this on the market.....because it needs work it will gain interest....this maybe a place that goes in a flash or sticks around for a while!

http://www.rightmove.co.uk/property-for-sale/property-36337935.html

St Marks Crescent, Maidenhead - 3 Bed Semi - Some updating required!

Good evening! I really like these type of places as they appeal to both investors and owner occupiers. If you can get past some interesting decor and wood panelling then this house has real potential! Places like this in St. Marks Road offer real capital growth opportunities with all the indicators suggesting prices should rise at a steady 5% plus year on year! At over 150 sq metres this would also make a great spacious family home......given this is a vacant property as well I would not expect it to hang around too long. Its on the market for £475K with Roger Platt. 

Take a look at the link below for more details:

http://www.zoopla.co.uk/for-sale/details/38086742

Maidenhead Landlord’s mortgages top £204 million!

The Brits can’t stop talking about property. The hot topic of discussion at the posh dinner parties of Bray, Henley and Burchett’s Green’s movers and shakers is the subject of the Maidenhead Property market, but in particular, buy to let. These people are buying up buy to let properties quicker than an ace Monopoly player …… or so it would seem if you read the Sunday papers. So is the buy to let market a sure fire way to make money?  Is it something everyone should be jumping into? Is it a sure fire way to make money? The answer is Yes and No to all those questions!

Firstly, the government gives tax breaks to landlords, as it allows the mortgage interest payments on a buy to let property to be tax deductible. Also, a landlord only has to flick through Rightmove or Zoopla, pick any property at random and agree a price. Then, find a modest deposit of 25% (often by re-mortgaging their own home), which for an average Maidenhead terraced house, would mean finding £94,771 for the deposit (as the average Maidenhead terraced house is currently worth £379,086) and borrow the rest with a low interest rate buy to let mortgage.  Finally, the landlord would rent out the property in a matter of hours for top dollar and live happily ever after, with the rent then covering the mortgage payments, with loads of money to spare and come retirement have a portfolio of property that would have quadrupled in value in fifteen years. Sounds wonderful – doesn’t it? Or does it???

Let us not forgot that the half of one per cent Bank of England base rate is artificially low. The international money markets can be fickle and if interest rates do rise quicker and higher than expected because of some unforeseen global economic situation, that monthly profit will soon turn into a loss as the mortgage will be more than the rent. Even though tenants are staying longer in their rental property, tenants still come and go and my guidance to landlords is they should allow for void periods, plus the maintenance costs of a rental property and of course, agents fees. .. all things that eat into that profit.

Interestingly, by my calculations, there are approximately 1,093 Maidenhead landlords owing in excess of £204 million in mortgages on those Maidenhead buy to let properties.  An impressive amount when you consider Maidenhead only has 0.102% of all the rental properties in the Country. It really does come down to a number of important factors going forward to ensure you are water tight for the future. A lot of existing landlords are fixing their mortgage rates. One told me that the Metro Bank are currently offering a 5 year fixed BTL remortgage rate at 3.79% for 5 years (based on a 75% loan). I don’t give financial advice, so you must speak with a qualified mortgage advisor.. but that sounds very fair!

However, one thing I do know is that buy to let is a long term investment, it’s a ten, fifteen, twenty year plan and property prices will go down as well as up. You wouldn’t dream of investing in the stock market without advice, so why invest in the Maidenhead Property Market without advice? I will try and give bespoke detailed advice to our landlords to enable them to spot trends in the Maidenhead Property Market before others, enabling them to buy better properties at better prices. For example, did you know that flats are selling for around 26% lower than 12 months ago in Maidenhead yet detached properties are selling for 22% more (with every other type in between). This means I can advise on which properties will go up in value better (or lose less if property prices drop), I can also advise which have lower voids and which properties have higher maintenance issues.  

Information on the local property market and ability to process it is the strongest asset I can give you. As Lois Horowitz, the famous author says, ”Not having the information you need when you need it leaves you wanting. Not knowing where to look for that information leaves you powerless. In a society where information is king, none of us can afford that”.