2014 – A funny year for the Gloucestershire property market?

A number of landlords, who own property in Cheltenham and Gloucester, have made contact with me recently asking for my thoughts on the future of the buy to let market in both Cheltenham and Gloucester. In previous articles, we have talked about the history of rents, property values, tenant demand and yields; all important matters for a landlord, but we haven’t discussed the future.

Property values rose by 8.4% (Oct 13 to Oct 14) in Cheltenham and 7.9% in Gloucester over the same time frame. Good news all round, but when you consider property values in both places have previously dropped by 19.43% between December 2007 and June 2009, this is not as good as the media would have you believe.  It should be no great surprise to hear that Cheltenham and Gloucester property values are starting to slow up as we head in to the New Year.  Whilst property values in Gloucester were growing at 1.5% a month in May and in June, in Cheltenham they rose by 1.6% July this year, on the run up to Christmas, they have slowed to a mere 0.3% monthly increase. 

The reality is we have had a year and a half of decent market conditions in Cheltenham and Gloucester, but now all that pent up demand is starting to fade. The big question moving forward is whether the market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the local property market.

Looking at the UK as a whole, because we can’t look at Cheltenham and Gloucester in just its little own bubble, the recent rapid rise in house values in some parts of the UK in the early part of the year (especially in London), along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. A moderation in growth looks likely into next year as supply and demand become increasingly better balanced.

Now with the General Election on the horizon, whichever Government takes power, they, along with the Bank of England, have a thorny job to do in balancing the expected rise in interest rates with the continued resurgence of the housing market, to ensure the property market doesn’t drop and drag down the economic recovery forcing people into selling their property at a loss.

However, back to Cheltenham and Gloucester, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-

• “Should I sell my property in Cheltenham and Gloucester, or even buy another?”

• “Is the time right to buy another buy to let property in Cheltenham and Gloucester            and if not Cheltenham and Gloucester, where?” 

• “Are there any property bargains out there in Cheltenham and Gloucester?” 

Many other local  landlords, both who are with us and many who are with other  local letting agents, like to pop in to  discuss the Cheltenham and Gloucester property market, how Cheltenham and Gloucester compares with its closest rivals (Bristol, Tewkesbury and Evesham), and hopefully answer the three questions above. I don’t do hard sell, and I will just give you my honest opinion.

In the meantime may I take this opportunity to wish you all a very Merry Christmas and a prosperous 2015.

2 Bed terrace - 5.6% Plus Yield

I have just spotted this 2 bed terraced property on the market with Andrews. Looks a bit shabby and will need some work doing. Priced at £145,000, if you had to spend £15,000 that would make a total spend of £160,000. Should let for around £750 PCM , giving a return of 5.6%. 

                             http://www.zoopla.co.uk/for-sale/details/35219004

This is potentially a good opportunity as good yield and you would have added value to the property. So if you fancy a project then this may be for you. If you would like advice on this or any other property please contact me. 

2 Bed Gloucester- 5.5 % Yield

This 2 bed flat is on the market with Alistair Bone at £115,000. This two bed ground floor should rent for £525 PCM , which is a yield of 5.5 % . The property is located close to the hospital, so will always be in demand. 

                              http://www.zoopla.co.uk/for-sale/details/35385240

I think you should check this out but don't forget the service charges and ground rent. If you would like advice regarding this or any other property, please contact me on neil.west@belvoir.co.uk 

Are there any property bargains in Cheltenham?

Newspapers report property prices in England have soared to a record high – sparking predictions that the country is facing another dangerous property bubble. Values in the South West are still 3.8 per cent lower than their previous peak in the Autumn of 2007. Even with that news, I have been speaking to a couple of landlords over the last few weeks who had concerns in some quarters that the state backed schemes to boost the supply of mortgages such as Funding for Lending and Help to Buy are inflating a new housing bubble. Those landlords are asking if this means the end of property bargains in Cheltenham?

Well, if you do your homework, there are still plenty of good buys in Cheltenham. Don’t expect them to come on the more popular streets in the town. The first rule of buy to let investment is that it is isn’t you that is living in the property, it’s the tenant, and there is always demand for every street in Cheltenham.

Back in July 2013, a two bedroom apartment situated in a Grade II listed period town house on St George’ Road in Cheltenham came up for sale with an asking price of £179,950. I kept the photos of the inside and it was very pleasantly presented inside, however, furniture had been removed and it did look rather stark. It sold for £167,000 in November 2013. A few months later, in May 2014, with what I can see was just some inexpensive new carpets, some emulsion on the wall  and a bit of furniture from Ikea, it sold again for £202,000 some eight months later, a rise of 20.96%, not bad when you consider that the average Cheltenham house price only rose by around 5.5% during the same time frame!

By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion freely to anyone who asks, be they an existing landlord of ours or of another agents. I will also give it to anyone thinking of becoming a buy to let landlord for the first time.

I do not charge for this service, because if I offer you an honest and straight forward opinion, you could consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door on Bath Road in Cheltenham to chat about the ups and downs of the property market in Cheltenham

3 Bed Cheltenham 5.5% Yield

This well presented 3 bed semi has just come on the market for sale with us. Its not often that I blog our own properties but this one would make a great investment for a buy to let investor. On the market for £165,000 and should rent for around £750 PCM, giving a yield of 5.5%.

                   http://www.belvoir.co.uk/12-quebec-drive-cheltenham/87983

Please give me a call on 01242221188 or email me neil.west@belvoir.co.uk if you would like to discuss this property or any other. My advice is free !

Two bed terrace - Gloucester 5.7% Yield

This 2 bed terraced property is on the market with Steve Gooch at £119,950. Linden has always been a popular rental area and this should let for around £575 PCM , giving a yield of 5.7%.                                   

http://www.zoopla.co.uk/for-sale/details/35348344

Some of these terraced houses have downstairs bathrooms, this one is upstairs and that always makes them more appealing. Check out what Steve Gooch have to say and if you would like more advice, then please contact me. Don,t forget we are willing to visit the property, so that we can give you our expert opinion and there is no charge for this. 

Gloucester’s property market has outperformed Lechlade’s by over 176%

Within Gloucestershire we have many towns and areas that make up our fine county, from the up market posh areas of the Chipping Campden, Lechlade and Cirencester all the way to the working class non nonsense areas of the Mitcheldean and Cinderford.  In fact I have a few landlords from the Cotswolds, one in particular who has a decent portfolio of buy to let property in Gloucestershire (especially in his home town of Lechlade and also Gloucester). Let’s be honest Lechlade is a sophisticated Cotswold market town which enjoys a well-earned reputation for stylish and convenient living close to abundant countryside. The thriving High Street, offers a comprehensive range of upmarket shopping facilities and the schools in are highly sought after having excellent Ofsted results. All these factors make the average value of a property in Lechlade around £443,900.

Our city of Gloucester has an excellent choice of shops, banks and restaurants, but not in the same league as Lechlade’s. Our city offers excellent rail and road links and there is a good choice of schooling within the area, including Sir Thomas Rich’s School and The King’s School and a number of decent primary schools. All these factors make the average value of a property in Gloucester around £204,300.

In the last 12 months, the average value of a property in Lechlade and Gloucester has risen in both places by roughly the same amount (Lechlade £15,900 and Gloucester £19,000). However, that doesn’t tell the whole story, because average property values are much lower in Gloucester. As a percentage, values in Lechlade have increased by a modest 3.7%, but in Gloucester they have increased at more than double that rate, in fact 176% proportionally more at 10.3%. It shows that Gloucester is a city that people want to invest in. 

By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion at no charge to anyone who asks, be they an existing landlord of ours or indeed another agent. I will also give it to anyone considering becoming a buy to let landlord for the first time. I do not charge for this service, because if I offer you an honest and straight forward opinion, you may consider using me to manage your property. However, I must stress there is no obligation to do so. Feel free to pop your head through our door on Worcester Street in Gloucester to chat about the ups and downs of the property market in Gloucester.

Browning Mews Cheltenham 4.7% Yield

This 3 bed property has just come on the market with Northwoods. Browning mews is a popular area of Hatherley and I would expect this to let at around £750 PCM. The sales price is £189,950, so that's a rental yield of 4.7%. Not great , I hear you say, but bear in mind capital growth and a property like this, in an area like this, should provide good capital growth as well.

                              http://www.zoopla.co.uk/for-sale/details/35283867

Family homes, in good areas, with good schools will always let well and should sell well too! If you would like advise regarding this or any other property, please contact me on neil.west@belvoir.co.uk

Longhorn Avenue - Gloucester- 5.8% Yield

This modern 2 bedroom flat has just become available for sale with the Property Centre. It is on the market for £122,500 and should rent for around £600 PCM , giving a yield of 5.8%.

                                 http://www.zoopla.co.uk/for-sale/details/35259279

The property has 2 double bedrooms and is in a popular area of Gloucester, near lots of shops and with great access to the motorway and Cheltenham. Great for professional sharers or a couple. 

If you would like advise about this or any other property, please do contact me. 

What has the Help to Buy scheme done to the Cheltenham and Gloucester property markets?

The Government launched Help to Buy last year to give a boost to the housing market. The Help to Buy scheme involves the Government guaranteeing up to 15 per cent of a mortgage, acting as an indemnity for the banks and building societies who sign up (so far only three banks have done so). This means lenders can provide mortgages more confidently to borrowers with a 5 per cent deposit. It will apply to all types of properties, first-time buyers, home movers and re-mortgagers.

Quite interestingly, first timer buyers have had access to 95% mortgages since 2010 so I am not sure what it will do to the market, except highlight that property can be bought with a 5% deposit. Scheme or no scheme, Cheltenham and Gloucester continues to have a buoyant property markets. Prices are rising, but not at the double digit level that was experienced in the early to mid 2000’s. If the scheme enables those who want to buy, to buy, then that can only be good for everyone in these areas.

Over the last 2 or 3 years, it has mostly been landlords that have been buying property in Cheltenham and Gloucester to let out. Carrying out a quick search on one of the price comparison websites, I was able to find in seconds that landlords can get fixed rate buy to let mortgages from as low as 2.99% until the end of 2016. With rental yields in Cheltenham and Gloucester of around 4% to 7% per year and the values increasing by 6.8% in Cheltenham and 10.3% in Gloucester, and the overall yearly return is the region of 10% to 16% per year.

However, buying a buy to let property is full of pitfalls. If you have a good tenant, in a good property and a good relationship between tenant and agent, then not much can go wrong, as long as the relationship between the landlord and agent is exceptional. I pride myself on exceptional relationships with my landlords and their continued business speaks for itself.

If you are considering becoming a new buy to let landlord, feel free to pop your head through the door of either of our offices in Cheltenham and Gloucester for some advice and opinion on what (or not) to buy. It is true the property market is showing signs of good improvement, but, if you know where to look, and more importantly, what to look for, there are still bargains in Cheltenham and Gloucester to be had.

Cheltenham -2 bed terrace 4.9% Yield

This 2 bed end terrace has just come on the market with RA Bennett. On  the market for £170,000, should rent for £675/£695 PCM- that's a yield of 4.9%. Ok , the yield is not going to make you rich but its safe and much better than the bank, particularly as the value of the house should go up as well. 

                               http://www.zoopla.co.uk/for-sale/details/35214317

Don't forget , don't just look at the rental yield, also look at the potential capital yield. If you would like advice on this or any other property, please do contact me. 

Herbert Street, Gloucester - 6.9% Yield

This three bed terraced house has just come on the market with Movearound. It is on the market at £100,000, chain free. The selling agents expect it to rent at between £575 and £625 PCM . Even if you take the lower estimate, which I think is achievable , that would give you a yield of 6.9%. 

                              http://www.zoopla.co.uk/for-sale/details/35193670

Please click on the link above for more information. By anyone's standards 6.9% is an impressive yield , so be quick and register your interest with Movearound. 

If you would like more infomation on this or any other property. please email me on neil.west@belvoir.co.uk .

Cheltenham and Gloucester Property Market – should you be buying?

A number of landlords, first time buyers and investors have approached me recently, asking about the Cheltenham and Gloucester property markets. With all these headlines of massive increases in property values in the UK over the last 12 months, should we be worried we are about to have a price crash? 

I am of the opinion that over the last few years, whilst mortgages have been a little more difficult to obtain than the last decade of the 2000’s, this lack of mortgages has produced some pent up demand for property. Now we appear to be on the other side of the financial crisis , and the banks are more willing to lend, this is why sales, prices and first-time buyer numbers have improved so rapidly. It has been like opening a shaken can of fizzy pop. You get the initial fizz of activity, and then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom.

Property values in Cheltenham have risen by 6.8% in the last 12 months whilst in Gloucester they have risen by 10.3%. When I look at the South West as a whole, prices have risen by 8.7% and nationally by around 9.6% over the same 12 months. Compared to the boom years of 2001 to 2004, when property values increased by 22% in 2001, 24.8% in 2002 and 12.1% in 2003 in Cheltenham and Gloucester, I cannot see why some are concerned about an unsustainable price boom. I believe house prices are rising off a low base and talk of a housing bubble in relation to the national market is overdone. We are seeing continued exceptional property price growth in London combining with modest gains across other regions (including our own in the South West) and creating a picture of a broadening market recovery, and I expect prices to continue to rise steadily in the short term.

Speaking to others, Gloucester (although the same story is being told in Cheltenham), the issue isn’t house price inflation, but a lack realistically priced properties coming onto the market for sale, a lack of supply. In the months of May and June this year 102 and 110 properties respectively came on to the market for sale in Gloucester City centre.  A few months later in September only 65 properties came on to the market. So should you be buying a property in Cheltenham and Gloucester? 

Now is a good time to buy, provided you accept prices may fall again in a few years. It depends on how long you plan to own the property (whether as a home or investment), whether it personally suits you and most importantly whether you can afford it. Cheltenham and Gloucester first time buyers preparing to take the plunge should bear these factors in mind. The biggest issue must be that buyers ensure they can take the hit of future interest rate rises and therefore, I ask the first time buyers of Cheltenham and Gloucester to make sure you'd be happy in your new home, because you could be stuck there in five years' time.

Landlords tend to buy for the long term, so these short term movements don’t tend to affect them as much. The lack of supply in Cheltenham and Gloucester of new properties coming onto the market indicates people wanting to buy have to move quickly, and don’t have the luxury of a few weeks to decide to view the property. However, my findings show that first time buyers and landlords in Cheltenham and Gloucester aren’t prepared to pay over the odds for a property to secure it. Maybe, the memory of the 2008 price crash has given a dose of realism to the optimistic Cheltenham and Gloucester property markets?

3 Bed - Kempton Grove Cheltenham -5.7% Yield

I have just spotted this three bed terraced house on the market with Peter Ball at £165,000. This looks great value for money. Three bedrooms, conservatory, kitchen diner. The garage has also been converted into a reception room. This would let for £775/ £795 PCM which would give a yield of around 5.7%.

                           http://www.zoopla.co.uk/for-sale/details/35149500

This is a good yield for a family sized property that will have few void periods. As I say came on the market today, I bet its sold by next week! If you would like any information on this on any other properties, please email me on neil.west@belvoir.co.uk

2 Bed Terrace Linden - 6.2% Yield

2 bed terrace in Linden on the market for £99950. Steve Gooch say that it is in need of modernisation and no pictures so hard to make a judgement as to the extent of work required. If we make an assumption of £10,000 required that would make a total investment of £110k. I believe that this would let for around £575 PCM and that would give you a yield of 6.2 % . Pretty good and you've added value to boot. 

                               http://www.zoopla.co.uk/for-sale/details/35121848

I really think that this is worth a look at and if you would like some advise on this or any other property, please do contact me on neil.west@belvoir.co.uk 

Why don’t people buy instead of renting in Cheltenham and Gloucester?

Quite often, when talking about the rental market, we talk about property and seem to forget the other party in the equation, the tenant. Without tenants, there is no demand for the rental property. The profile of the Cheltenham and Gloucester tenant has changed and continues to change. Although this is in part due to the credit crunch, job mobility and the raising of deposits, an increased number of people in their twenties are choosing to rent rather than buy and have done so, even when they were in a position when they could have bought a property.

Since the credit crunch, rents have been good value for money for most tenants outside London. Few rents (outside London) have kept pace with inflation as they tend to track wage inflation. In 2008, the average median gross wage according to Office of National Statistics in Gloucester was £22,107 whilst in Cheltenham it was £26,055. Latest figures for Gloucester in 2014 show average salaries in the City have risen to £24,782 a rise of 12.1% whilst in Cheltenham, the same survey shows that average salaries are now £29,703 an increase of 14%. Recent research results from the Bank of England with regards to inflation, goods and services that cost £100 in 2008 would cost £119 in 2014, making inflation 19% over those seven years. 

Cheltenham and Gloucester tenants are paying less than both wages and goods inflation. Cheltenham and Gloucester rents are in fact still only around 4.5% above the level being achieved in 2008 but the tenants are being paid between 12.1% and 14% more. That is why we have seen a greater demand for Cheltenham and Gloucester rental properties with more and more people becoming tenants. So renting has since the credit crunch, on average, delivered good value for money for tenants and hence the healthy demand and lack of void periods for most property.

Overall, considering the recent rises in property prices over the last 12 months, we are between 2% to 3% above the 2007 boom prices in Cheltenham and Gloucester. With reasonable rents, many would-be first time buyers in Cheltenham and Gloucester have been wise to remain in the private rental sector. Rents tend to move in line with wages as opposed  to inflation and if something goes wrong with the property, inevitably landlords pick up the bill, so tenants aren’t hit with awful expenditure surprises as a normal homeowner would be. In addition, renting offers better mobility both from a location perspective, but also from a trading up or down perspective in terms of rent commitment which, in this tough job market, could be considered a wise move.

From the landlords point of view, the consequence of this steady / solid market throughout the Cheltenham and Gloucester area, with good tenant demand, decent long term capital growth (as mentioned in last week's article) and average yields of around 3.8% to 4.5% with home owners it used to be buy, sell, buy, sell as one rose up the property ladder.. Now it’s buy, hold, buy, hold.

If you would like to discuss my thoughts on the rental markets in Cheltenham or Gloucester, feel free to pop into either of our offices in Cheltenham or Gloucester or email me on neil.west@belvoir.co.uk 

1 bed Apartment - Brookbank Close Cheltenham 4.7% Yield

We are marketing this lovely one bed apartment for sale in this popular development , Sovereign House. This is rented out by us and we currently have a great tenant in place who is paying £550.00 PCM. 

Properties allways let quickly in this development to professional people. The yield is reasonable when you  consider that this will be low maintenance going forward. 

                   http://www.rightmove.co.uk/property-for-sale/property-48875831.html

Please follow the link for information and if you would like more info on this or any other property, please do contact me on neil.west@belvoir.co.uk 

3 Bed Semi Gloucester- 6.0% Yield

This 3 bed semi has just come on the market today at £125K with Michael Tuck. It will probably need some updating and once done would achieve a rental of around £625 PCM which would be a healthy yield of 6.0%. Three bed family properties are in great demand and this would let relatively easily. 

                             http://www.zoopla.co.uk/for-sale/details/35061338

This is what is the selling agent have to say: Michael Tuck are offering this substantial three bedroom bay fronted semi detached house located on Tredworth Road in Gloucester offering ease of access to Eastern Avenue & Gloucester city centre as well as being well served by local shops, schools & amenities. The accommodation comprises of: Entrance hall, 3 reception rooms, kitchen, upstairs bathroom, 3 bedrooms and enclosed rear garden. Offered for sale with no onward chain

If you would like advise on this or any other property, please contact me on neil.west@belvoir.co.uk 

Is the Gloucester Property market a runaway train?

Some of my landlords invest for yield, some invest for capital growth (however, it’s very difficult to get both in this market). Everyone is different; if you are a landlord in Gloucester, who invests for capital growth as opposed to yield, it is crucial to look to build in capital growth in a property by getting a property at a discount or by finding a way to add value. 

So, how can you get a discount in this property market, with Gloucester property values alight and property being snapped up over night? Achieving capital growth in Gloucester is going to be tough over the coming few years isn’t it? Well yes and no. Looking at the headline figures, of the 1,812 properties available for sale today in Gloucester, 875 of them are sold subject to contract, an impressive 48.2% which is obviously a sign of a runaway Gloucester property market? Well, no it isn’t. Don’t get me wrong it is a lot better than it was a few years ago, but there are still good property deals to be had. 

We asked Rightmove for all of the properties that had come on to the market in the last 28 days (542 to be precise), after one month, how many of those 542 had found buyers .. around one in five (113 to be precise or 20.8%). Look at the last 56 days (2 months) and of the 895 properties that have come on to the market in Gloucester, only 283 have a sale agreed on them (or 31.6%) .. the property market is good but it’s not a runaway train, is it?

The main thing is that landlords must take as much advice as possible. They will need to take a long and serious look at any existing properties or new ones to make sure they can achieve capital growth and that this increases in line with inflation.  I have a great technique for finding properties that have been on the market for sale over three months or more. You don’t need any special software. All you need to do is ask Rightmove to list your search results (when searching), with the most recent first. The ones on the last few pages are by definition, the ones that have been on the market longest and potentially ready to do a deal .. simple but effective.

In both Cheltenham & Gloucester, there are good agents and bad ones, but one thing is always the same,  they are all paid by a vendor to sell you a property, not paid by you to help you buy. Therefore, when they show you that bargain, don’t get pressured into buying a property until you have a good feel for the market. We have many landlords who send me a web link of any Cheltenham or Gloucester properties they are interested in and I always give my honest opinion. (It might not be what you want to hear, but it will always what you need to hear!).

So why do we do that? Well, we are a Lettings Agency. Once you’ve bought the property, we would very much like to manage it for you or help with just finding you a tenant. If we give our opinion, at no cost or obligation, then we start to build a relationship, you may just start to trust us and as we will be giving you great customer service, which at the end of the day, is what landlords want from their letting agent and you might end up asking us to be your agent in the future (but of course there is no obligation to do so). With that considered, it’s very much in our interests that you buy something that’s sensible and lettable – we don’t want you buying a dud, or something where the figures don’t stack up!  

If you would like to discuss my thoughts on the rental markets in either Cheltenham or Gloucester, feel free to pop into either of our offices in Cheltenham or Gloucester or email me on neil.west@belvoir.co.uk

Why should you consider getting into buy to let in Cheltenham

A recent article, when we spoke about the difference between Cheltenham and Gloucester property markets, produced a number emails and a couple of people popped by my offices for a chat about investing in buy to let.

Many people in our part of Gloucestershire, over the last few years, have seen the buy to let market become all about nest egg investment. It is fuelled by pitiful interest rates on building society savings. It reflects the fact that building society savings accounts are paying half a per cent interest and pension returns are struggling to match expectations, turning more and more people into landlords to secure their future.  So what can you expect from your rental property investment? In the short term, rental yields are important, and in Cheltenham, the average annual yield is in the order of 3.8% per year. However, that is based on averages, and as most landlords in Cheltenham tend to buy starter home homes, apartments and terraced houses, the majority of which are achieving 4.5% to 6.2% per year depending on location and price in the area.

In the long term though, the question of capital growth is as important, if not more important (because if you have great short term yields, but the value of the property doesn't keep up with the rest of the market, you will have an asset that in real terms is dropping). The average property value in Cheltenham currently stands at £303,800 and property values in Cheltenham have risen by 17.6% in the last 5 years. On the other hand, property investment is a long term game, so I wanted to share with you the research I did for a couple of Cheltenham landlords. Roll the clock back 10 years to 2004, the average value of a property in Cheltenham was £196,985. 15 years to 1999 makes interesting reading, as the average Cheltenham property value was only £101,112, 30 years makes it £31,809 and just for a bit of fun, we looked at 1974 at it was £12,010!

However, if one looks at say a 30 year investment period, if you had put £31,809 into the stock market in 1984 instead of buying a house in Cheltenham, your shares today would be worth £190,573. Put the same £31,809 money in a Building Society account and you reinvested the interest back into the account, and your Building Society passbook would have £177,357. Compare that with the property market in Cheltenham and the property would be worth £303,800 today (as mentioned above). Not bad until you realise that with the rental property you would have received in excess of £162,000 in rent over those 30 years, which wouldn’t have received with the Building Society account!

If you would like to discuss my thoughts on the rental markets in Cheltenham and Gloucester, feel free to pop into my offices in Cheltenham or Gloucester, or pick up the phone or email me on neil.west@belvoir.co.uk

2 Bed Semi - Cheltenham 5.2% Yield

This 2 bed Semi has come onto the market with RA Bennetts at £165,000. It is located in a popular area and should rent for around £725 PCM. It looks as if it is in tip top condition and ready to go. £725 PCM would give a yield of 5.2 % . Don't forget the potential capital gain also.

                             http://www.zoopla.co.uk/for-sale/details/34938547

Bennetts don't think that this will be around long and I tend to agree. If you would like any advise on this or any other property, please do contact me on neil.west@belvoir.co.uk

3 Bed Semi - Linden - 5.3%

This 3 Bed semi has just come on the market with Steve Gooch . Situated in Linden , this would let easily at £595.00 PCM, giving a yield of 5.3 % . Bathroom downstairs, will put some people off but dont let this deter you as will let relatively easily. 

                              http://www.zoopla.co.uk/for-sale/details/34920137

This is what Steeve Gooch has to say :This Extended Three Bedroom Semi Detached House Is Situated In The Popular Area Of Linden. Benefits include 16ft Lounge, Fitted Kitchen Units, Breakfast Room, Gas Fired Central Heating, Predominantly Upvc Double Glazed, Off Road Parking, Large Rear Garden and No Onward Chain the property details you are about to view are awaiting vendor approval and therefore may be subject to change.

If you would like advice about this or any other properties, please contact me on neil.west@belvoir.co.uk 

Gloucester vs Bristol property values – which City has performed the best?

One topic that I am always asked about, both by existing landlords and new ones, is how one city’s property values have performed against another. When purchasing a buy to let property, there are two ways landlords make money through property letting - capital growth and rental income growth.

When a property increases in value over time, it is known as 'capital growth'. Capital growth, also known as capital appreciation, has been strong in recent times in both Bristol and Gloucester, but the value of property does go up as well as down, and of course the local conditions surrounding your property have a big effect. Rental income is what the tenant pays you - hopefully this will grow over time too. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return. 

A landlord from Stroud, who has a number of properties in both Gloucester and Bristol, asked me a few weeks ago about the difference between Gloucester and Bristol housing markets. I was quite surprised with my findings and wanted to share them with you.

The average property price in Gloucester is currently £201,800. In the last 12 months property values in Gloucester, according to my calculations, have risen by just over 9.5%. Yet roll the clock back a few years and in 2011 values dropped 4.4% from the property values being achieved in 2010. However, irrespective of the roller coaster prices we have seen in Gloucester, they are still 15.8% higher than the 2009 slump.

Property values in Bristol over the last 12 months have risen by 10.4% and over the last five years (2009) by 17.3% which, on the face of it, means that Bristol has performed better than Gloucester.  However, go back to the property boom of 2007 and property values in Bristol are only 2% higher than they were at the peak of the 2007 boom, the same percentage figure as Gloucester’s. (Although Cheltenham’s are 3.2% higher!)

Then there is the question of yield, as Bristol normally has higher yields than Gloucester, but Bristol’s rental market can be quite fraught with its stricter rules. Each Gloucester (and Bristol) landlord will have different needs and requirements in his or her property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords. If you would like to discuss my thoughts on the rental markets, feel free to pop through the door of our offices on Worcester Street in Gloucester or send me an email to neil.west@belvoir.co.uk

2 Bed Flat Lloyd Close - 5.8% Yield

This first floor apartment is on the market with Adams at £117,500. It will let for £575.00 PCM and that equates to a yield of 5.8%. There will be some service charges so these will need to be factored into your figures.

                             http://www.zoopla.co.uk/for-sale/details/34059963

This is what Adams have to say: A modern, first floor two bedroom apartment. Available with no onward chain and in good decorative order throughout, this spacious apartment offers a central hall, large living room. Two double bedrooms, full bathroom and modern fitted kitchen. An excellent investment or first time buyer opportunity.

I agree that this could be a good investment opportunity. We let and manage a lot of flats on this development and they are always in demand, appealing to professionals who work locally. 

If you would like advice on this or any other property, please do contact me on neil.west@belvoir.co.uk 

Modern 2 bed Gloucester No Brainer 7.3% Yield

£87000 Guide Price - This has just come on the market- If you can get this at around £90K and let for at least £550 , that's a 7.3% Yield - NO BRAINER.!!!  OK, I think that this will probably go for more as has a garage, en suite and is low maintenance. 

                             http://www.zoopla.co.uk/for-sale/details/34869920

We have let a few on Tolsey Gardens and always popular. You must give this a look as that is a great yield on a modern property.

Call The Property Centre now and book your viewing - I can guarantee that this will go quickly , wish we were selling it!

2 Bed Flat Lansdown Cheltenham £700.00 PCM 4.9 %

I like the look of this 2 bed flat in Lansdown Road on the market with Elliot Oliver at £170,000. I think it should let for around £700 PCM giving a return of 4.9% . Great area , very close to the station and as as I say great layout. 

                               http://www.zoopla.co.uk/for-sale/details/34836432

Two double bedrooms so would appeal to sharers which makes the rent more affordable. If you would like advise about this or any other property, please do contact me on neil.west@belvoir.co.uk 

Cheltenham & Gloucester – Battle of the Postcodes

I was asked last week if postcodes make a difference to property values. Well in swanky West London, the difference between SW3 and SW10 can make values drop or rise by thousands, even millions of pounds. However, in Cheltenham and Gloucester, we don’t have many Russian Oligarchs and Saudi Prince’s buying our properties. However, after doing some investigating, I did find out some interesting info.

The main postcode areas of Gloucester are GL1, GL2 and GL3 with Cheltenham’s main postcode areas being GL51, GL52 and GL53. The postcode with the best performing housing market over the last 12 months has been the GL52 postcode with the area to the East of Cheltenham going North, passing the Racecourse onto Bishop’s Cleeve with average values rising by 6.7%%. However, in a very close second and third come GL2 and GL3 with rises of 5.46% and 5.21% respectively in the same 12 month period with GL1 and GL51 seeing more modest, yet healthy rises of 4.49% and 4.4% - whilst the worst performing area is GL53 with a rise of only 2.74% in the last 12 months. Over the last 5 years, values in all of the six postcode areas have been much tighter with the best performing areas being GL1 and GL3 at 14.2%, all the other postcodes come in between 13.3% and 13.8%.  I think you would agree that this is a much closer spread than short term gains over the last 12 months.

However, property values are only half the story when it comes to property investment. The average yields tell a slightly different story. The best performing postcodes for yields are the respective town centres of GL1 in Gloucester at 6.74% and GL51 Cheltenham’s town centre at 6.4%.  Then there is a second tier of yields with GL52, GL2 and GL3 having respective yields of 4.6%, 4.5% and 4.3% per year.  However, it is of no surprise that GL53, with its’ rural nature has low yields of only 3.1% per year.

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 (yield, capital growth or a bit of both). If you are a landlord, new or old, pop in and see us at our office's in either Cheltenham or Gloucester for a chat or email me direct on neil.west@belvoir.co.uk  

4 Bed Semi - Great Family Let 4.8 % Yield

Remember what I said about 3 and 4 bed houses? They are in great demand and families tend to stay longer. Longer tenancies means less voids and repairs bills. This one is a 4 bed semi on the market with Taylors . Two receptions, family bathroom, downstairs WC and an en suite. I think this will let for around £825 PCM , maybe more, depending on what is around at the time. 

                            http://www.zoopla.co.uk/for-sale/details/34794221

If you are looking for a rental investment for the long term with a reasonable yield and potentially a good capital growth, this is the sort of property, you should be looking at. 

Please feel free to call me on 01242 221188 or email me on neil.west@belvoir.co.uk  for more advice.

Leckhampton – the place to buy a buy to let?

One of the final chunks of census data has recently been released by the Government, and for those of you who like to look at data, it is a treasure trove of information. Information is so important when making decisions on what (or not) to buy when investing in property. The census data allows anyone to look at the data for housing estates or areas, but even better down to individual roads. Such information allows us to weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.

After discussions with a landlord who had been reading the Cheltenham and Gloucester Property Blog he took me up on the offer of popping into our offices on Bath Road in Cheltenham.  We got discussing the area of Leckhampton in Cheltenham and whether it made a good buy to let investment area.   After carrying out some research this is what I found out; there are 5,275 people living in 2,276 properties. It is the home ownership percentages that really got me interested, as it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties. In this area of Leckhampton of those 2,276 properties, 47.7% own their property without a mortgage (compared to the 32.1% Cheltenham average) and an additional 37.7% of households own their property with a mortgage (again the Cheltenham average is only slightly higher at 32.4% and that includes all the posh villages!). 

237 or 10.4% of households in Leckhampton are privately rented.  This is not due to a lack of demand by tenants but of a lack of supply, confirming that it is a very popular area with owner occupiers.  The average value of a property in Leckhampton at this moment in time is a rather high £381,800 with average rents at £901 per month.  This gives us an average yield of 2.83% which is not at all high when you consider that in the city centre yields of between 4% and  6% can be achieved.  It must however be noted that average values in Leckhampton have risen by approximately 85.2% since 2002, which is considerably higher than the Cheltenham average of 51.8% since 2002.  

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. If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices in either Cheltenham or Gloucester for a chat or email me direct on neil.west@belvoir.co.uk

Hopwood Grove , Cheltenham- 4.8% Yield

Take a look at this very well presented property in Hopwood Grove, Cheltenham. On the market with Cook Residential at £170,000 and should let for £675/ 695, which will give a yield of 4.8%. Ok , the yield is not spectacular but this will always let well with few void periods. 

                           http://www.zoopla.co.uk/for-sale/details/34725897

This is what the sales agent say : 

Offered For Sale With Onward Chain Complete

Two Generous Bedroom House

Both Bedrooms With Fitted Wardrobes

Enclosed Low Maintenance Rear Garden

Upstairs, Beautifully Presented Family Bathroom

Two Allocated Parking Spaces

I think its worth a look and if you would like any advice on this or any other property, please do contact me on neil.west@belvoir.co.uk