Rents Paid By Tenants In Walton-On-Thames On The Rise

With Easter just gone and considering we are a quarter of the way through 2015, I was talking to a landlord from Weybridge the other day about what is happening to the level of rents that are being achieved in the Walton-On-Thames property market. 

 

The rents that new tenants have to pay in Walton-On-Thames (ie when the tenant moves out and new tenant moves in) have risen in the order of 3.8% in the last 12 months. However, we are finding landlords with sitting tenants are not increasing their rents to their existing sitting tenants. This is because most of these landlords prefer to keep their existing tenant paying the same rent and have the peace of mind that they will have no void period, than risk if the tenant decides to leave and new one can’t be found to replace them. However, I believe that risk is very small indeed.

It must be remembered rents dropped by 2% over 2008/9, due to oversupply in the rental market in 2009.) A lot of the people who couldn’t sell their property in Walton-On-Thames in 2008/9 when the Credit Crunch hit in 2008, decided to let their house out instead of selling at a loss. In fact, the number of houses on the market in Walton-On-Thames dropped by 53.5% between June 2007 and November 2009, a lot of which came on to the rental market. However, looking at the longer term though, tenants have had it good  because since the turn of the Millennium, average wages have grown by 46%, but rents outside London have only grown by 36% rental growth over this period.

I told the landlord that there is a lack of new rental properties in Walton-On-Thames coming on the market, in fact according to the Office of National Statistics, there are only 3 new rental properties are coming to the market each month in Walton-On-Thames but the population is rising by 12 people a month – something will have to give soon! This is compounded by the fact a number of landlords are looking to sell their rental properties in the coming months, as the property market in Walton-On-Thames has improved. This further compounded as tenants in existing rental properties appear to be staying in properties for longer periods of time.

Looking at the rents charged in Walton-On-Thames, historic evidence in the UK suggests private market rents have moved in line with general inflation. Government figures only go back as far as the year 2000, but looking at other countries with similar housing markets (America, Australia, Ireland and Holland) the fact is rents paid by tenants tend to rise in line or just ahead of inflation.

As short term wage growth in Walton-On-Thames has eased off recently, rising by only 1.3% in the last 12 months, taking average salaries in Walton-On-Thames to £35,692pa, with the tax breaks announced by The Chancellor in the Budget, I believe, even though rents have kept pace with inflation in the past, renting as an option has become more affordable, and is increasingly seen as a lifestyle choice. With returning economic growth and expected increases in the rate of growth of wages, above inflation rental growth could rise. 

If you want a chat about the local Walton-On-Thames property market, pop in for a coffee or email me on marcel@rochills.co.uk.

Thorneycroft Close- A great house

This two bedroom house has just come to the market with our friends at Martin Flashman for £329,950.

In great condition you could easily rent this out for £1,300 per calender month so get yourself booked in before this one goes quick!

https://www.onthemarket.com/details/1399974/

Hersham Property Market – What is really happening?

I had an interesting conversation with a local Hersham accountant the other day. He is quite an observant chap (I know this because I have known him for a few years... but I suppose you have to be to be an accountant!). Anyway, he mentioned a few things he had noticed recently in Hersham, one that Hersham property prices had gone up in the last few years but nowhere near the growth levels that were being achieved in central London, and secondly, that he thought the number of For Sale boards in Hersham (and more importantly ones with sold slips on them) had increased over the last couple of years.

The rate of house price inflation in Hersham continues to slow with growth of 12.4% in the 12 months to February compared to 14.1% just under six months ago, according to the latest Land Registry data. However, there is considerable variation with house price growth ranging from 14.5% in Bracknell to 17.1% in Hillingdon over the last 12 months.

Whilst Hersham hasn’t seen the 20%+ per year in house price growth of London over the last couple of years,  Hersham has seen  a sharp uplift in the number of properties sold throughout  2014 as base line demand for housing grows, which suggests there is substance to the recent pick-up in house price growth in the town. Since the Second World War in the UK, when the number of properties sold had grown, property values grew soon after. The 4.81% uplift in property transactions in Hersham in 2014, compared to 2013, indicates the most significant recovery in house market activity in Hersham (outside London) since 2007.

When you compare Hersham with London, you could be looking at two different countries. In London, its mid/late teens house price to earnings ratios are impacting demand (i.e. the average property value is often 15 or 17 times the average wage in London... in fact in Knightsbridge the ratio can be 30 to 1). However, the number of people wanting to sell has dropped considerably, meaning that falling sales volumes combined with a general slowdown in activity in the run up to the General Election are resulting in lower mortgage approvals for home purchase.

Transactions are a great indicator for house prices. The acceleration in house price growth in London in the last two years was preceded by three years of rising transactions. A similar pattern is being registered in the Hersham area, as pent up demand returns to the market supported by low mortgage rates and an improving economic outlook.

But before you get the Champagne out, while the uplift in activity is welcome news, the number of Hersham property sales in 2014 is still 22.3% lower than the level seen in 2007 and property values are 4.7% above the 2007 levels. The ongoing housing recovery is far from broad based and remains focused on middle to higher value areas within Hersham where households have equity and find it easier to access mortgage finance. If you want to know more about the Hersham Property Market, please visit the KT12 Property Blog www.waltonproperty.blogspot.co.uk or send me an email to marcel@rochills.co.uk.

The Heart- Town Centre Luxury!

This fab apartment in The Heart development has just come on with James Neave for £279,950.

Offering luxury town centre living these apartments easily rent for £1,050 per calender month so don't miss out!

http://www.rightmove.co.uk/property-for-sale/property-34200465.html

Wilton Gardens- Perfect For Commuters

This great two double bedroom house has just come on the market with our friends at Curchods for £339,950.

Just a stroll from Walton Station and with a garage this would easily let for £1,250 per calender month.

Don't be disappointed get yourself booked in now!

 https://www.onthemarket.com/details/1382993/

Burwood Road- A Rare Studio

I have just taken on this great studio apartment with private garden for sale for just £179,950.

With a luxury kitchen, bathroom and private garden this would easily let for £900 per calender month what a great return!

Call me now to get booked in for this one it's not to be missed!

http://www.rightmove.co.uk/property-for-sale/property-34145292.html

Sidney Road- A Great Buy To Let

This fab two bed ground floor maisonette has just come on the market with Martin Flashman for just £279,950!

With a good sized private rear garden and being just minutes from the town centre you could easily fetch around £1,250 per calender month for this!

https://www.onthemarket.com/details/1353589/

Egmont Road- A Great Investment

This great three bedroom home has just come on the market with our friends at Martin Flashman for just £399,950!

Being so close to the town centre this location is really popular and you can expect to rent it out for approx. £1,400 per calender month.

https://www.onthemarket.com/details/1333647/

Wilton Gardens- A Great Buy!

This two double bed house has just come on the market with Martin Flashman for just £339,950.

Within walking distance to Walton Station you could let this for £1,350pcm.

Get yourself booked in now before this one gets snapped up!

http://www.rightmove.co.uk/property-for-sale/property-49033432.html

Manor Road- A Rare Find!

This great one bedroom ground floor maisonette with private garden is in a great spot in Walton Town Centre.

Having been refurbished to a high specification throughout Rochills have just put it on the market for £272,000.

With it's great location you could easily fetch around £1,050 per calender month.

http://www.rochills.co.uk/search/walton-on-thames/1-bedroom-maisonette-for-sale-in-walton-on-thames/full_details_adv4/821712

Regnolruf Court- Perfect For Sharers!

This great apartment has just come on the market with our friends at John D Wood for just £200,000.

With two double bedrooms, parking and town centre location sharers would snap this up for approx. £1,000pcm.

http://www.rightmove.co.uk/property-for-sale/property-51287531.html

Auckland House- Another Great Town Centre Apartment

This two double bed apartment has just come on the market with James Neave for just £240,000.

Located in the town centre this would be great for sharers and would rent for approx £1,100 per calender month.

http://www.rightmove.co.uk/property-for-sale/property-51194273.html

The Heart- Town Centre Living!

This great one bed apartment in The Heart has just come on with our friends at James Neave for £275,000.

These apartments are easy lets, as they are so central and let for up to £1,100 per calender month.

http://www.rightmove.co.uk/property-for-sale/property-51174059.html

Rushmon Gardens- Great Size Ground Floor Apartment

This apartment is just 200 yards from Walton Station and is just £245,000.

This would appeal to any commuter and would fetch up to £900 per calender month.

http://www.rightmove.co.uk/property-for-sale/property-51156890.html

Apathy In The Walton-On-Thames Property Market

Apathy has hit the Walton-On-Thames housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand.  This is mirrored around the UK as Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier.

Looking at Walton-On-Thames, in the autumn of 2014, each estate agent had on average 27.6 properties on its books (as there were a total of 332 properties up for sale in Walton-On-Thames at the peak in the autumn just gone). Our research shows that number plummeted to 19.4 per agent in December.  While the lack of new properties coming onto the market in the later months of 2014 in Walton-On-Thames pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.

The length of time a property takes to sell has increased over the last few months. Two bedroom properties in Walton-On-Thames are now taking 59 days to sell, three bedroom 98 days, four bedrooms 103 days, but here an interesting figure, one beds are taking on average 79 days to find a buyer.

2015 will be the year of the selective mover. With only 56 brand new properties a year being built in Walton-On-Thames since the turn of the Millennium, this woefully low and insufficient number of new buildings in the town over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.

So is it all doom and gloom? Far from it! Walton-On-Thames landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy or the election, if people don’t buy property they rent.  The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property. The only other place to get a roof over your head? Rent a property! Good old Bricks and Mortar!

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. Email me on marcel@rochills.co.uk.