What does that mean for local Landlords and Homeowners?
The balancing act of being a Letchworth Buy To Let landlord is something many do well. Talking to numerous Letchworth landlords, they are very aware of their tenants’ capability to pay the rent and their own need to raise rents on their rental properties. Despite the ‘perceived ‘dark clouds of Brexit, evidence suggests many landlords feel more confident than they were in the Summer and Autumn of 2018 about aiming to push rents higher on their Letchworth Buy To Let properties.
Looking at the data for the last 7 years, this shows that throughout the Summer months, the rents new tenants have had to pay on move in have increased at a higher rate than during the colder months of Winter. This is because the Summer months are normally a time when renters like to move, meaning demand increases for rental properties yet supply remains pretty rigid. Yet the Winter stats buck that trend and this is great news.
Rents in Letchworth on average for new tenants moving in have risen 1.6% for the month, taking overall annual Letchworth rents 0.3% higher for the year
However, several Letchworth landlords have expressed their apprehension about a slowing of the housing market in Letchworth and I believe, based on this new evidence, they may be overstated. Before we get the bubbly out though, the other part of investing in property is what is happening to capital values (which will also be of interest to all the homeowners in Letchworth as well as the Letchworth Buy To let landlords). I believe the Letchworth property market has been trying to find some form of balance since the New Year. According to the Land Registry….
Property Values in Letchworth are 0.1% lower than they were 12 months ago
Yet, these figures reflect the sales of Letchworth properties that took place in the Winter of 2018 and now are only exchanging and completing during the New Year / early Spring months of this year.
The reality is the number of properties that are on the market in Letchworth today has risen by 8% since the Winter
and that will have a dampening effect on the property market. As tenants have had less choice, buyers now have more choice .. and that will temper Letchworth property prices as we head into the middle of 2019.
Be you a Letchworth landlord or Letchworth homeowner, if you are preparing to sell your Letchworth property in 2019, it’s important, especially with the rise in the number of properties on the market, that you are pricing your property realistically when you bring it to the market. With the likes of Rightmove, Zoopla and OnTheMarket on everybody’s mobile phones and laptops, buyers have access to every property on the market and they will compare and contrast your home with other properties like yours – and will more than likely dismiss your property rather than view it.
To all the Letchworth homeowners that are not planning to sell though – this talk of price changes is only on paper profit or loss. To those that are moving .. most people that sell, are buyers as well, so as you might not get as much for yours, the one you will want to buy will not be as much. Look at the deal as a whole, the difference between what you sell yours for and what you buy at.
Give us a call 01462 419329 or e-mail us firstname.lastname@example.org to arrange a no obligation Sales Advice Meeting – we will help you understand the options you have and the best way to realise your goals.
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Finally, all the Letchworth landlords – keep your eye’s peeled – I have a feeling there may be some decent Letchworth buy to let deals to be had in the coming months.