Monkey Island Lane, Bray - 2 Bed Bungalow - Development Opportunity

Just having a quick last look at the property sites before xmas.... and noticed this development opportunity come up near Bray. It's on the market with Purple Bricks for £800K and needless to say this will get a huge amount of interest! Whatever your plans for this property the Gross Development Value will be absolutely key in terms of what you should be paying for a property like this..... if you need any assistance with this then feel free to get in touch. 

More pics below......

http://www.zoopla.co.uk/for-sale/details/42530928

Maidenhead Housing Crisis? Only 3.9% of Maidenhead Homes Are For Sale

The Maidenhead Property Market continues to disregard the end of the world prophecies of a post Brexit fallout and continues to perform well against most parts of the UK!  

The challenge every Maidenhead property buyer has faced over the last few years is a lack of choice – there simply hasn't been much to choose from when buying (be it for investment or owner occupation). Levels are still well down on what would be considered healthy levels from earlier in this decade, as there is still a substantial demand/supply imbalance. Until we start to see consistent and steady increases in properties coming to the market in Maidenhead the market is likely to see upward pressure on property values….. despite us being in a comparative lull to recent times!

However, there may be hope for first time buyers, with homeowners looking to move upmarket and buy to let landlords looking for their next investment, the Maidenhead property supply crisis just might be starting to ease, as the number of new properties coming onto the market in Maidenhead has increased.

For example, recently we have seen over 250 new properties coming on to the market every month, not bad when you consider for the last year the average has been in the 200 to 220 range. With the average Maidenhead property value hitting a record high, reaching almost £564,500 according to my research, this shortage of properties on the market over the last two years has contributed to this ‘fuller' average property figure, but there is a glimmer of hope that the Maidenhead's supply crisis may be starting to ease.

As I write this article, 3.93% of Maidenhead properties are up for sale. In terms of actual chimney pots, that equates to 843 properties on the market in Maidenhead (within 3 miles of the centre of Maidenhead) – which, when compared to only a year ago when that figure stood at 507, this is a serious increase in the number of properties available to buy. Split down into the type of property, it makes even more fascinating reading...

 

• Detached Properties in Maidenhead  - 188 on the market a year ago compared to 256 on the market now – an increase of 36%
• Semi Detached Properties in Maidenhead - 124 on the market a year ago compared to 216 on the market now - an increase of 74%
• Terraced Properties in Maidenhead - 56 on the market a year ago compared to 98 on the market now - an increase of 75%
• Flats / Apartments Properties in Maidenhead  - 99 on the market a year ago compared to 226 on the market now - an increase of 128%

Realistically priced properties will continue to shift quickly, and this increase in new properties (especially semis and apartments), this is evidence of strength in the Maidenhead housing market that many didn't expect. Many believed that the Maidenhead property market wasn't going to be strong enough post Brexit - as what was a sellers' market before the Brexit vote and Buyers' market in the early months after it, may now be somewhere in between and the market might just be coming back into balance.

However, all this will mean property values won't continue to grow at the same extent they have been over the last 12 to 18 months, and in some months (e.g. the run up to Christmas and early in the New Year), values might dip slightly. This won't be down to Brexit but a re-balancing of the Maidenhead Property Market – which is good news for everyone.

Maidenhead Property Market in 2017 and Beyond

Now the trees have turned from green to hues of red and brown, it is worth reflecting on how the Maidenhead Property market has also cooled as we enter the Winter season. With the underlying fundamentals of a continued lack of properties being built and low mortgage interest rates demand for Maidenhead properties has certainly cooled off over the past 6 months….

There may also be a few potential hurdles coming towards us in the coming months that could affect the Maidenhead (and UK) property market. Mrs. May has yet to get her teeth into Brexit negotiations and we don’t know what the result of the US Presidential elections might do to the money markets around the world, meaning that on the run up to Christmas, some savvy buyers may take advantage of the lack of certainty by making cheeky offers, but I don’t believe these will have a huge impact on property values (like the 2008 Credit Crunch).

You see, property ownership, whether it’s for yourself as a homeowner or buy to let landlord, is a long term investment. In fact, focusing on buy to let, a number of landlords who own property in Maidenhead have made contact with me recently asking for my thoughts on the future of the buy to let market in Maidenhead.  Well, as the Politician Edmund Burke said in the 18th century, "Those who don't know history are destined to repeat it." .. in other words, to see the future you must look into the past.

Since the Millennium, the housing market has had everything thrown at it. The recent Brexit, last year’s General Election, the near melt down of the World Economy with the Credit Crunch, The Dot Com boom and bust, the housing market crisis in 2008, the housing boom of 2001 to 2004 .. the list goes on. In fact here is a graph (courtesy of the Land Registry) of average Property values since the Millennium in the Royal Borough of Windsor and Maidenhead Council area.

Even though we had the Dot Com bubble burst in 2000, two years later in January 2002, property values in the Royal Borough of Windsor and Maidenhead Council area have risen from £167,300 (in Jan 2000) to £213,300 .. and kept rising to January 2008, when they peaked at £356,300. Then we had the Credit Crunch and property prices continued to fall until January 2009, where they averaged £270,000 .. but look where they are now…  £489,200.

The point I am trying to get across is long term future property values are more helpful to landlord investors than the month by month headline grabbing micro movements in the property market.  Look at the graph and you will see the growth in property values is an upward trend BUT, the average darts about as each month goes by.  So don’t watch the property indexes and panic if values drop next month or the month afterwards, because even in the glory days of 2001 to 2004 and 2012 to 2014, without fail, values always dropped slightly around Christmas, but people will always need a roof over their heads, and if they can’t buy and the council aren’t building anymore  .. only buy to let landlords can meet that demand.

Maidenhead landlords are being hit in the pocket with the new up and coming taxation rules and yes we might have a bumpy ride on the run up to Christmas (because of the points raised earlier), Brexit or no Brexit, but the trend will be a slow and steady upward momentum of property values, demand for rental properties and yields in the Maidenhead property market into 2017 and beyond.

Moorfield Terrace, Maidenhead - 1 Bed Flat - Great First Time Investment!

Just seen this tidy one bedroom flat come on the market with Waterman's for £229,950. As a first time investor this could be a great starting point..... from the pics it looks in good condition so no need to get the paint brushes out before you get this on the rental market! For a one bedroom flat in this part of town you could expect to achieve a rental income of around £850 PCM..... worth a look!

http://www.zoopla.co.uk/for-sale/details/42428225

Fotherby Court, Maidenhead - 2 bed Terrace - Prime Location!

Fotherby Court is always a popular area for tenants, so if you are looking to grow your property portfolio I would give the guys at Hamptons a call to find out some more details on this place. It's on the market for £365K and you could expect a rental income in the region of £1,200 PCM. 

For more details take a look at the link below.....

http://www.zoopla.co.uk/for-sale/details/42432089

Harvest Hill Road, Maidenhead - 4 Bed Detached Bungalow - Development Opportunity

Not for the faint hearted this one! This place does offer real opportunity..... but at what cost? To maximise your return this maybe a knock down and start again project? It's on the market with Hamptons for just under £600K..... and for the Harvest Hill area this is pretty much the average asking price. Time to do your maths..... this could be a real development opportunity..? 

More details below

http://www.zoopla.co.uk/for-sale/details/42391929

Clare Road, Maidenhead - 3 Bed Semi - Work Required!

Good morning, we are off to Clare Road again today. Just seen this house come on the market with Waterman for £435K. A semi detached on this road will always command a slight premium in price, but you really need to book your self a viewing to see how much work actually needs to be done to make this an attractive proposition for all those tenants..... as I keep saying tenants expectations on the standard of a property are higher than ever. For 3 bedroom semi's in Clare Road the average sold price is around the £460K mark..... so you just to make sure you leave yourself enough for them refurb costs.... well worth a look though!

http://www.zoopla.co.uk/for-sale/details/42379048

Nursery Road, Taplow - 3 Bed Semi - Popular Location!

Good afternoon, today we are off to Nursery Road on the border of Taplow and Burnham. 

Roger Platt have just released this to the market with an asking price of £490....... I always like to try and provide you areas that are proving popular with tenants and with Lent Rise School nearby this will always get the attention of young families looking to move into the area. Looks in good condition so little effort required to get this back on the rental market.....

More pics and details by clicking the link below...

http://www.zoopla.co.uk/for-sale/details/42356241

Maidenhead Landlords and Tenants: What does the ban on Tenant Fees mean for you?

Quick Read:

• Tenant Fees are set to banned within 12 to 18 months
• Rents will rise as those fees are passed to Landlords

With our new Chancellor of the Exchequer revealing a ban on tenant fees in his first Autumn Statement last Wednesday what does this actually mean for Maidenhead tenants and Maidenhead landlords?

The private rental sector in Maidenhead forms an important part of the Maidenhead housing market and the engagement from the chancellor in Wednesday’s Autumn Statement is a welcome sign that it is recognised as such. I have long supported the regulation of lettings agents, which will ensconce and cement best practice across the rental industry and I believe that measures to improve the situation of tenants should be introduced in a way that supports the growing professionalism of the sector. Over the last few years, there has been an increasing number of regulations and legislation governing private renting and it is important that the role of qualified, well trained and regulated lettings agents is understood.

However, whilst the Government is quite right in its assessment that the UK is in the middle of a Housing Crisis and is trying to do something to alleviate the pain from the people feeling it most (as confirmed in a recent conversation I had with Dominic Grieve QC, the MP for Beaconsfield), personally I am not convinced that this approach is the best one. There has been a lot of media coverage of the high upfront costs facing tenants, which I do agree in many of the examples quoted have been unnecessarily high, however in my opinion this has been exacerbated by a minority of greedy rogue letting agents charging unregulated and extortionate fees. Perhaps a better approach would have been to regulate fees rather than an outright ban. However, I digress….let’s see what the impact of the ban will actually be.

Great News for Maidenhead Tenants?

So, let’s look at tenants .. this is great news for them, isn’t it?  Well before you all crack open the Prosecco, read this …

Although I can see prohibiting letting agent fees being welcomed by Maidenhead tenants, at least in the short term, they won’t realise that it will rebound back on them.

First up, it will take between 12 and 18 months to ban fees, as consultation needs to take place, then it will take an Act of Parliament to implement the change. A prohibition on agent fees may preclude tenants from receiving an invoice at the start of the tenancy, but the unescapable outcome will be an increase in the proportion of costs which will be met by landlords, which in turn will be passed on to tenants through higher rents.

Published at the same time as the Autumn Statement, hidden in the Office for Budget Responsibility’s Economic and Fiscal Outlook on the Autumn Statement, it said on Wednesday …

“The Government has also announced its intention to ban additional fees charged by private letting agents. Specific details about timing and implementation remain outstanding, so we have not adjusted our forecast. Nevertheless, it is possible that a ban on fees would be passed through to higher private rents”

According to Shelter, that’s not what happened in Scotland, right?

Scotland banned Letting Fees in 2012. The charity Shelter have been a big voice in persuading and lobbying the Government since it managed to persuade the Scottish Parliament to ban fees in 2012. On all the TV and radio shows at the moment, they keep talking about their Independent Research, which they said showed that,

“renters, landlords and the industry as a whole had benefited from banning fees to renters in Scotland. It found that any negative side-effects of clarifying the ban on fees to renters in Scotland have been minimal for letting agencies, landlords and renters, and the sector remains healthy.”

Going on,

“Many industry insiders had predicted that abolishing fees would impact on rents for tenants, but our research show that this hasn’t been the case. The evidence showed that landlords in Scotland were no more likely to have increased rents since 2012 than landlords elsewhere in the UK. It found that where rents had risen more in Scotland than in other comparable parts of the UK in 2013, it was explained by economic factors and not related to the clarification of the law on letting fees”

.. yet the devil is in the detail….

Only yesterday Shelter were quoting this Research from December 2013 to say rents never went up following the tenant fee ban in Q4 2012. I have read that research and I agree with that research, but it was published three years ago, only 12 months after the ban was put into place.

I find it strange they don’t seem to mention what has happened to rents in Scotland in  2014, 2015 and 2016 .. because that tells us a completely different story!

What really happened in Scotland to rents?

I have carried out my research up to the end of Q3 2016 and this is the evidence I have found..

In Scotland, rents have risen, according the CityLets Index

by 15.3% between Q4 2012 and today

 (CityLets being the equivalent of Rightmove North of the Border – so they know their onions and have plenty of comparable evidence to back up their numbers).

When I compared the same time frame, using Office of National Statistics figures for the English Regions between 2012 and 2016, this is what has happened to rents:

Scottish rents have risen by 15.3% compared to those in London, which rose by 10.6% over the same time period.

Are you really telling me the Scottish economy has outstripped London’s over the last 4 years? Is anyone suggesting Scottish wages and the Scottish Economy have boomed to such an extent in the last 4 years they are now the Powerhouse of the UK? .. because if they had, Nicola Sturgeon would have driven down the A1 within a blink of an eye, to demand immediate Independence!

So what will happen in the Maidenhead Rental Market in the Short term?

Well nothing will happen in the next 12 to 18 months … it’s business as usual as the Government runs a consultation and makes the necessary amendments to the relevant Act of Parliament.

… and the long term?

Rents will increase as the fees tenants have previously paid will be passed onto Landlords in the coming few years. Not immediately .. but they will.

As a responsible letting agent, I have a business to run. It takes, according to ARLA, (Association of Residential Letting Agents) on average 17 hours work by a letting agent to get a tenant into a property. We need to complete a whole host of checks prescribed by the Government; including a right to rent check, Anti Money Laundering checks, Legionella Risk Assessments, Gas Safety checks, Affordability Checks, Credit Checks, Smoke Alarm checks, Construction (Design & Management) Regulations 2007 checks, compliance with the Landlord and Tenant Act, registering the deposit so the tenants deposit is safe and carry out references to ensure the tenant has been a good tenant in previous rented properties.

All of which the vast majority of lettings agents take very seriously and are expected to know inside out making us the experts in our field. Yes, there are some awful agents who ruin the reputation for others, but does the whole industry have to pay the price for the behaviour of the rogues?

Business is business. No landlord, no tenant and certainly no letting agent will do work for free.

I, along with every other Maidenhead letting agent will have to consider passing some of that cost onto my landlords in the future. Now of course, landlords would also be able to offset higher letting charges against tax, but I (as I am sure they) wouldn’t want them out of pocket, even after the extra tax relief.

So what does this all mean for the future?

On average, in Maidenhead, the current application fee for a single person is £300 and for a couple £400 meaning on average, the fee is around £350 per property.

I am part of a Group of 500+ Letting Agents, and recently we had to poll to find the average length of tenancy in our respective agencies. The Government says its 4 years, whilst the actual figure was nearer one year and eleven months, so let’s round that up to two years.

That means £350 needs to found in additional fees to the landlord, on average, every two years.

In Actual Pound Notes

If the landlord is expected to cover the cost of that additional £350 every two years, rents will theoretically only need to rise by an additional £175 a year after 2018, on top of any natural inflationary increases.

The average rent of a Maidenhead Property is currently £1,574 per month, so in real terms, the current cost of absorbing the additional £175 per year would be an increase of only 1%, or approximately £15 per month. In reality, since most tenancies are agreed on a 12 month basis, I can’t see many landlords willing to take the risk of losing £175 if the tenant left after 12 months, so the real increase would be more like 2% (or £30/month).

Conclusion

The banning of letting fees is bad news for tenants, who are the very people supposed to be benefitting from this change in the law.

Letting agents who charged reasonable tenant-find fees will be able to pass these over to the landlord, who in turn will pass back to tenants with higher rents, as we have seen in Scotland.

Whilst it reduces the amount of money tenants need to find when they move and this will give people a greater freedom to move home as a result, this comes at a cost. Tenants will end up paying for this by paying higher rent.

.. and the agents that charged the silly high application fees .. well that’s their problem. At least I know I can offer the same, if not a better service to both my landlords and tenants in the future in light of this announcement from Phillip Hammond.