How much have Andover property values increased?

Last week, a landlord came in to our office to discuss the rising property values in Andover. He owns a varied portfolio of rental properties, primarily in Andover, so it is interesting to compare the increase in property values around the area.

Over the last 5 years the average property value in Andover has risen by nearly £26,767, from £201,889 to £237,669. This is a very reasonable 12.69% increase. When we looked at the values for semi detached houses, this average increase is even greater at £31,971. This is a considerable average increase of £122.96 per week.

When I looked at some of the surrounding towns, Ludgershall has a lower average increase in property value, at around £117.84 per week. It is, nonetheless, a rise in average property values to suggest the market is doing well in our area.

When considering this landlord’s buy to let portfolio, the rental values increased somewhat during the 12 months. Therefore it could be a good time to invest in the property market in Andover and Ludgershall.

If you would like some advice about buying to let, please come and see us at our offices.

Demand still on the increase but price rise slows

The latest Halifax House Price Index has shown that the price increases seen in recent times are beginning to slow.

In the 3 months up to September prices showed an 8.6% increase compared to the same period last year and are showing and are showing a 9.9% increase in the 3 months to August.

However, prices fell a little between August and September with the average house price now standing at £202,859.

Martin Ellis, Halifax housing economist, saw no reason for pessimism though as demand is on the increase and he expects prices to carry on increasing.  He recently stated “Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates.

“Increasing demand is combining with very low growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”


Separate research showed that detached houses and bungalows had shown the slowest growth in value over the past decade at 21% and 28% respectively while flats have shown the greatest increase at an impressive 60%.

A great little investment property

Now those of you who regularly follow our blog will know I am a great fan of the ex local authority property.  They are generally well made with loads of storage and good sized rooms.  They always rent very well too.

Below is a link to a property I spotted a few days ago which has had a price reduction.  Yes, I accept it needs some work as mock stone effect is not to everyone’s taste!  The work needed is probably mainly cosmetic so not only does it make a great buy to let, you could probably make a little on the re-sale too!  

Three bedroom house on Galahad Close

For any advice on buy to let, pop in and see us at our Bridge Street offices.

Tenant demand hits an all time in high across the UK

A recent report by Rightmove has shown that rising property values have pushed more people into the rental market as they have been priced out of the buying market.  This in turn has led to an increase in rent in nearly all areas of the UK as demand continually outstrips supply.

Rightmove report a 52% increase in email enquiries compared to the same period last year.   Prices also increased by 2.7% in the second quarter of the year.

Outside London, average rents increased from £741 in the first quarter to £761 in the second quarter which showed an increase of 4.2% on the second quarter of last year.

The head of lettings at Rightmove, SamMitchell said “Rents have grown this quarter in nearly all regions of England and Wales, fuelled by demand outstripping supply in many of the sought-after areas, especially in the east of England and the more affordable areas of London”.

Picket Twenty rental potential

The new development at Picket Twenty has been under development for a few years now and is growing steadily.  There are a variety of properties available from flats to 5 bedroom houses.  A smart community centre has been provided by Test Valley Borough Council and is run by a group of local volunteers for local events and can be hired for private use.  It’s a great facility, all of which helps to build a real community spirit for the area.  Picket Twenty also has a church backed primary school call Pilgrims Cross.

As with most new build properties they take a very small amount of time to let with close proximity to the A303 only adding to the attraction of the area.  A three bedroom townhouse can be bought for around £270,000 and achieve a rental income of around £1200pcm giving a yield of around 5.3% which is quite respectable for houses in the Andover area.

Two bedroom coach houses can be purchased for around £160,000 and will generally let for around the £850pcm mark achieving an even better yield of around 6.3% per year.

This development is proving more and more popular with tenants giving Landlord the peace of mind that void periods are likely to be minimal.

If you are considering purchase a buy-to-let property but just want to double check before taking the plunge feel free to pop in to our Bridge Street offices and we will be happy to advise you. For more information on Picket Twenty head over to Test Valley Borough Council's information page on the site. 

Preparing your home for sale- Part 2

In our last blog we gave you a few hints and tips on how to make your property look ideal to viewers. Keep reading for some more great tips. 

Condition

Don’t expect others to see past the ‘foibles’ that you have lived with; the hole in the ceiling; the scuffed paint work on the door frames. Ask your friends to be honest about what they see that you no longer notice. Fix the problems, particularly the easy ones such as repainting.  Don’t mask serious problems. If the property has damp and it isn’t something you are willing to fix, get quotes for the work and leave them with your agent. Trying to disguise an issue will eventually come back to haunt you, when a survey brings it to light it will provide an opportunity to negotiate down the price.  Clean windows let in more light, as does removing any netting or blinds that you normally have up. Let viewers see your rooms with all the natural light you can get. It will always look better and the rooms will look bigger.  In the kitchen consider replacing the unit doors and handles if they are shabby but the unit carcasses are in good condition. They don’t need to be expensive, just look good.

“Show home” living

No nasty smells.

Always make sure the bin is empty. If you have pets move them outside for a viewing if possible and make sure their food & water trays are clean and washed with no litter trays in the house. You may not be able to smell anything, but non-pet owners will notice the odour.

Keep it tidy.

At some point in the sales process you will sigh and say “….but I have to live here”. True, but you’d rather be living somewhere else so it’s worth making the effort to keep the property permanently on show until you have a sale. A buyer might want to come round at short notice so always have the house ready to be viewed.

Details matter.

In the bathroom make sure the towels are neatly folded on the radiator, the shower screen is streak-free, the bath, hand basin and toilet are sparkling and a new bar of soap looks better than one which is melting away. If the bathroom is tiled, ensure both tiles and grout are clean.

Kitchen work tops

These benefit greatly from under-unit lighting - so if you have them, turn them on. Ensure all light bulbs work – especially in cupboards and under the stairs where prospective buyers might want to look. Open the windows in summer. In winter ensure the house is warm.

Potted plants or fresh flowers

These brighten up the room, but make sure their smell is not overpowering. The smell of furniture polish gives the impression the home is well cared for.

Leave a light on

This can create a relaxed atmosphere and brightens the room. Ask viewers to take off their shoes when looking around – it makes people realise that you care about your home, and gives the impression the property is well looked after. 

Outside

Cut back overgrown bushes and trees. Fill in old ponds or sand pits. These measures can add to the size of an existing garden and allow a better view. Look out of your windows front and back. What can you see? If it’s not pretty in the distance then create something nice to look at close by. Use brightly coloured plants in pots or tubs if you don’t have a garden to catch the eye.  Remove old sheds or greenhouses. Getting rid of these not only creates space, but also lets in light.  Ensure that the garden is tidy; the lawn should be free of leaves, paths swept, weeds removed, loose paving fixed and clean the garden furniture. Hanging baskets, planted tubs and window boxes make a house look cheerful and create a fresh smell. Even in winter a floral display makes a property look cared-for and desirable.  Look at the front of the property -perhaps the front door or garage door needs re-painting or a new one fitted? Make sure external paintwork, guttering and doors all look to be in good order.

This may all sound like a lot of effort but, believe me, it will pay dividends and should help to secure a buyer more quickly, thereby cutting down on the amount of viewings and giving you the chance to move on to the next one sooner!

Record number of buy-to-let mortgages are available

A recent report by Mortgages for Business states that there are now 817 products available on the market for buy-to-let investors, up 17% from 707 measured in the 3^rd quarter of last year.

A new lender, Fleet Mortgages, who specialise in buy-to-let has also entered the market.

The Managing Director of Mortgages for Business, David Whittaker, said “Lenders continue to compete fiercely for the ever-growing buy-to-let market with more than 100 extra products available in the last three months.

“This unprecedented pick-up reflects the huge increase in demand as well as the wider importance of the buy-to-let industry.

“Looking at total lending in 2014 the trend is clear. For a second consecutive year the value of the buy-to-let market grew by almost a quarter.

“We anticipate further growth in 2015 but at a slower rate as the market takes an inevitable breather after such a huge sustained spurt.”


To our mind this is just further proof of the growing interest in the buy-to-let market for both existing and new investors.

Ludgershall investment opportunity

Ludgershall often offers good buy-to-let opportunities and here is one I found today.

This 3 bedroom flat should achieve around £700pcm on the rental market, giving a very respectable 6.2% yield.  Ludgershall is popular with tenants as it tends to be a little cheaper than Andover but still within easy reach of both Andover and Tidworth for work opportunities.

As with all flats though, check on the length of the lease before committing.  Bear in mind you will want to sell it on at some point and if the lease is short, that limits the number of buyers this will attract.

Comment below if you have any questions.

Andover Property - Do you know the Facts and Figures?

Here at Martin & Co, we can guide you to the right places to identify property values and yields in Andover and other useful property related information so you can make sure you get all the information you need about your future investments. Here are just a few property facts about our town of Andover....

There are 550 streets in the SP10 postcode with 17,964 households, and just a fairly small portion of all those properties (2,452 to be precise) have changed hands in the last 5 years.  Obviously this number is increasing all the time with the new build estates.

Compared to the national average - Andover has a slightly higher percentage of detached houses (2%), 3% less semi detached houses and 4% more terraced houses. This is a good indicator that Andover is good place to buy property in. If you would like more useful facts and figures or advice on a suitable buy to let property pop in and see us at our offices and have a chat.

Which semi detached house should I buy in Andover?

A potential investor asked if they should buy a 3 or 2 bed semi detached property to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a great yield?

Answering this question will help you figure out which properties you should buy...The average asking price of a 3 bed semi in Andover is £234,920 today compared to £202,535 for a 2 bed semi. The 3 bed semi achieves an average rental price of £940 per month compared to £780 per month for a two bed semi.

That’s a yield of 4.6% for the 2 bed against 4.8% for the 3 bed. So surely, the 3 bed semi is the better bet? Well it does offer a better rate of return, but a 2 bed semi is slightly easier to rent out (less void periods) and will be easier to sell in the future.  The main thing to remember if going for the 3 bed is always make sure that the third bedroom is of a reasonable size rather than just a box room as this can make it difficult to left. 

Pop into our office, call or comment below if you have any questions.

New to investing?

New to investing? – A few top tips

If you have made the decision that property is something you want to invest in as a buy-to-let Landlord there are a few important things you need to know before taking the plunge!

1.       Know your market.  Before you invest in a property, decide who you want to rent to.  Are you happy to rent to sharers?  Do you only want to rent to families?  If you are happy to rent to sharers then bedroom size is key.  Two sharers will want two double rooms whereas a family will take a house with two double rooms and one single but make the decision before you buy.

2.       Invest in kitchens and bathrooms.  These two rooms tend to be very important for renters.  If these rooms are a little tired look at re-tiling, putting in new worktops and changing cupboard doors if the units are sound.  Always make sure there is some sort of shower in the bathroom.  If either of these rooms need gutting and totally refitting don’t spend a fortune on it.  Don’t forget this is a business, not your home!  Put in units that are tough and durable but look good.

3.       Keep colours neutral.  To be honest, you can’t go wrong with good old magnolia.  That way it is easier to freshen up the property between tenancies.

4.       Specialist Landlord insurance.  You must take out specific Landlord insurance.  This is different from your normal buildings insurance in that it will also give you an element of liability insurance which hopefully you will never need!  Also, consider rent guarantee insurance, especially if you have a mortgage on the property.  Again, hopefully you will never need it!

5.       Use the services of a good agent!  Again, make a decision early on about whether or not you are happy to manage the property yourself or just want a tenant finding service.  Whichever it is, it’s always wise to use an agent as they will be able to reference any potential tenants very thoroughly (Find out more about referencing here).  This is likely to become even more important this year with new laws being bought in about identifying overseas tenants – more on that soon!

Keep an eye on our blog for more updates

Home ownership in Britain is falling

Eurostat, the EU’s official statistics office has recently reported that Britain now has one of the lowest rates of home ownership within the EU.  In 2013 the figure was 64.6% which is down from a figure of 70% in 2005.  Only France, Denmark, Austria, Germany and Switzerland were lower while eastern European countries had the highest rates with the top being Romania at 95.6%.

In a separate report the Department of Communities and Local Government state that between 2000 and 2012 2.5m new homes had been bought by Landlords with only 400,000 being bought by owner occupiers.

Stamp Duty Land Tax has changed!

As you are no doubt aware the Chancellor has made changes to the rate of Stamp Duty charged on a property purchase in his autumn statement.  The highlighted points are:

•          No Stamp Duty payable on properties up to £125,000
•          On ALL properties the first £125,000 will be free from Stamp Duty
•          Any amount over £125,000 up to £250,000 will incur a 2% charge
•          Charge of 5% incurred up to a sale price of £925,000
•          Charge of 10% incurred up to a sale price of £1.5 million
•          Then payable at 12% on any amount over this amount

Click here to see a useful calculation table which shows what you would have paid on the old system and what will be paid now.

The government claim that this will help 98% of home buyers but we will wait and see on that one!

Keep an eye on our blog for further information.

Click here for more information on the Autumn Statement

How can I find a good property deal in Andover?

I was chatting with a Landlord recently who mentioned that there are not bargains to be bought in Andover at the moment.  Whilst we do sell property we are always happy to give advice on potential good investments to Landlords, whether we have the property on the market or not.  I did a little bit of research and found that there are bargains still to be found out there.

A 4 bed detached on Salisbury Road sold in 2007 for £369,950. In June of this year it sold again for £330,000, a drop in value of 10.8%!  A 2 bed terraced house on the Roman Way estate, sold for £135,000 in June this year. It had previously been sold in 2007 for £149,000, these are excellent value properties.

The common thread here is that both of these properties had been purchased in 2007, around the time that the market began its downward slide and although prices have picked up there are still bargains out there.

Whether you are a landlord of ours or not, drop by our offices if you would like any advice...

Land Registry reports a slower market

The September report from the Land Registry showed that the rising of house prices is slowing.  The report for September, released this week, shows that the average price of a house in England and Wales is now £177,299.  This is down by 0.2% on the previous month although up by 7.2% on the same time last year.

The figures for Hampshire are slightly better with the average house price higher at £228,020 with the monthly difference standing at 0.8% and the yearly figure showing an increase of 7.7% from the same point last year.

A positive note from the report showed that repossessions were down compared to the same period last year.  In the months of April to July 2014 repossessions averaged 890 per month across the country compared to 1324 in the same period last year.  On the whole repossessions would appear to be on a downward trend.

Bargains on Burghclere Down

A landlord became ever more curious about the Burghclere Down Buy to Let market after reading our newsletters about various areas of Andover, so decided to pop in and ask our advice.

I found that a fairly typical four bedroom semi-detached townhouse with a garage on Hibiscus Crescent was bought for £187,000 in 2012. The same property sold for £225,000 in June this year, which is a rise of 20%. Prices in the town during this same time period rose by an average of 10.8%, so it should have sold for £207,200 if it had followed the towns average house price trend.

A three bedroom detached house again on Hibiscus Crescent sold for £226,950 in the summer of 2006, and was sold this summer for £249.950. This is again a decent rise of 10%, but average prices in this time have risen by a much more remarkable 26% in the area.

With rents for detached houses on the estate could achieve between £900 and 1100 per month, yields are around 5%. I think in terms of a rental investment, there are better properties, such as smaller two or three bedroom semis, or even ex local authority properties, but for owner occupation there are some bargains.

Our passion lies firmly within the residential property market, so please feel free to talk to us at any point about our diverse area.