As my regular readers know, my passion is talking about Maidenhead
property. As a property agent I like to comment on the Maidenhead property
market, which I hope will be of interest to both homeowners and buy to let
landlords alike. However, this week, I want to highlight the plight of the tenants
of Maidenhead as more and more of their wages are being taken up by ever
increasing rents.
The cost of renting a home in Maidenhead has broken through
the £1250 a month barrier as the average rent for a property in the town, now
stands at £1253 per month, and whilst this was a drop of 0.6% last month, rents
for new lets are 7% higher than they were 12 months ago.
House price inflation has certainly eased in Maidenhead from
the heady days of 2014, but still with retail price inflation (for goods and
services) reducing to 0% any increase in property values, no matter how small,
means in real terms property is still getting more expensive. Meanwhile, many
tenants have given up saving for a mortgage deposit as rents continue to take more
and more of their wage packets leaving nothing to save for a deposit. That
means, more and more tenants are deciding to rent for the long term and
therefore the desire for decent high quality rental properties continues to exceed
the available rental stock.
I would go as far as to suggest that rents are an ideal
barometer to the state of the local economy as a whole and strongly believe that
the recent increase in Maidenhead rents are a sign that the Maidenhead economy
is picking up.
This means Maidenhead landlords are continuing to capitalise
on the Maidenhead property market. The most recent Land Registry data suggests
the annual property price rises in the town have eased over 2015, leaving
property values 11% higher than 12 months ago, so as property price growth is
easing off, with the increased rents, rental yields are strengthening for the
first time in years to compensate. The mortgage market has become more stable after
the mad months of May and June after the Tory’s got back into No.10, and so,
everything is set to be good news for landlords; even with the Chancellors
change of tax rules in the coming years for buy to let mortgages.
You can get some amazingly low mortgage rate deals at the
moment, so with mortgage rates so low and returns still extraordinarily attractive,
there’s rarely been a better time to invest in rental properties.
However, (you knew there would be a however!), it’s all
about buying the right property at the right price. Not all property types are
seeing equal rises in rents and capital growth.
Different parts of the town, different types of properties are
experiencing quite different changes.
For example, the average length of time the 65 Maidenhead properties up
for rent between £250 to £500 per month is 79 days, whilst the average length
of time the 125 properties at £500 to £1000 per month is an eye watering 108
days and 214 properties that fall into the £1000 to £2000 per month price
bracket is 65 days.
When you start comparing different parts of Maidenhead, the
numbers are even stranger! The bottom
line is that you must take advice and opinion. One source of advice and opinion
is the Maidenhead Property Blog. In the Maidenhead Property Blog, you will see
many more articles like this, discussions and even what I consider to be the
best buy to let deals around, irrespective of which agent is selling it.
Whether you are a landlord, ‘Homes Under the Hammer’ addict
or just a homeowner who is interested in what is happening to the local
property market, then please visit the Maidenhead property Blog http://maidenheadpropertyblog.blogspot.co.uk
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