What properties are actually selling in Cheltenham ?

Prices up, prices down, prices stable .. the newspapers are full of good news, bad news and indifferent news about the Brit’s favourite subject after the weather .. the property market. The thing is the UK does not have one housing market. Instead, it is a patchwork of mini property markets all performing in a different way. At one end of scale is London, which has seen average prices grow in the last twelve months by a shade under 19% (and again that is an average because some Borough’s in London have risen by 26%) whilst in the land of Daffodils , by contrast, Wales only saw a 2% increase in property values (although in the Merthyr Valleys they dropped by over 11%).

Well we can’t ignore the rest of the UK, and we can’t forget that the Chancellor’s Stamp Duty reforms have polarised the London property markets above £1,000,000 because at the top end of the market, punitive Stamp Duty charges will dampen demand further. While the Bank of England warned of the growing London property price bubble in the Spring of 2014, even talk of a recovery in some areas was premature. In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets – really slow property value growth.

But what about Cheltenham? Well, we haven’t had the December figures from the Land Registry yet but the last few months’ activity and prices achieved would suggest neither house price growth nor drops. In fact, most sellers are buyers anyway, so if you need to take less for yours, you won’t have to pay as much for the one you want to buy ... and that is good news for everyone as most move up market when they move. This is even better for landlord investors, as they can bag a bargain as well.

The question you should be asking though is not only is what happening to property prices, but which price band exactly is selling? I like to keep an eye on the property market in Cheltenham on a daily basis because it enables me to give the best advice and opinion on what (or not ) to buy in Cheltenham.

If you look at Cheltenham and split the property market into four equalled sized (into terms of households) price bands. Each price band would have around 25% of the property in Cheltenham, from the lowest in value (the bottom 25% ) all the way through to the highest 25% (in terms of value). Over the last two months (63 days to be precise), in the lowest quartile, (those with asking prices under £145k) 126 properties have come onto the market in Cheltenham and 22.2% of them (28 properties have a buyer and sold stc. The next quartile, between £145k to £215k, of the 195 properties that come on to the market, 34.3% of them (67 properties) have a buyer. The £215k-£340k price range has seen 213 properties come on to the market, and 27.2% of the properties have a buyer (58 properties). The most expensive 25%, the £340k plus range, has seen 44 of the 169properties that came on to the market find buyers (26%). Fascinating don’t you think?

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any house price growth or drops this side of the election. Election or no election, people will always need a roof over their head and that is why the property market has rode the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008.

And why? Because of Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash. ... there is always a silver lining when it comes to the property market! 

2 Bed House - Cheltenham - 5.9% Yield

This 2 Bed end terrace property has just come on the market with Taylors of Cheltenham. Two double bedrooms , good location for access to the town centre, this would make a great rental investment. 

                              http://www.zoopla.co.uk/for-sale/details/36205471

On the market at £140,000, this should let for £695 PCM , giving a yields of 5.9%. The property looks well presented and ready to go. This should be a relatively low risk investment with a good yield.  Please call Taylors to view and me for any advice that you may require. 

Neil West 01242 221188   neil.west@belvoir.co.uk

Is the Gloucester Property market holding its breath over the General Election

Has apathy hit the Gloucester housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand? 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 Gloucester, in the late summer of 2014, each estate agent in Gloucester had on average 32.8 properties on its books (as there were a total of 1,280 properties up for sale in Gloucester at the peak in the late summer just gone). Our research shows that number plummeted to 26.7 per agent in December. While the lack of new properties coming onto the market in the later months of 2014 in Gloucester 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 ever so slightly increased over the last few months. Two bedroom properties in Gloucester are now taking 109 days to sell, three bedroom 66 days, four bedrooms 75 days, but here an interesting figure, one beds are taking on average 151 days to find a buyer

2015 will be the year of the selective mover. With only 459 brand new properties a year being built in Gloucester since the turn of the Millennium, this woefully low and insufficient number of new buildings in the City 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.

The heat has gone out of the Gloucester property market and I anticipate a moderate reduction from the high transaction volumes seen in 2014, but it most certainly isn’t icy cold. That might mean Gloucester 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! In fact with less properties coming on the market in Gloucester, that will keep prices quite stable.

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 neil.west@belvoir.co.uk 

Widden St - Gloucester - 6.0% Yield

This two bedroom terraced house has just come on the market with The Property Centre. This is located in a popular area of Gloucester for rented properties and would let relatively quickly at £550 PCM. 

                        http://www.zoopla.co.uk/for-sale/details/photos/36132947

The property is on the market at £110,000 so that would give a pretty good rental yield of 6.0 %. The property is marketed as a 2/3 bed as the third bedroom can only be accessed through another one. The rental value is based on a 2 bedroom so may be able to achieve a little more on the rental price. If you would like advice on this or any other property, please contact me on neil.west@belvoir.co.uk

Tivoli - Cheltenham 5.0 Yield

One bed flat in the very popular and attractive area of Tivoli. This property in on the market for £130,000 and currently rents for £525 PCM . The current tenant is moing on shortly and we would envisge that a rent of £550 PCM could be achieved on this. 

                       http://www.belvoir.co.uk/2b-tivoli-mews-cheltenham/89096

We actually manage the rental of this property and are handling the sale. Giving a potential yield of 5.0% this is a flat you should consider as an investment. For more details or to arrange a viewing on this flat, please call Belvoir on 01242 221188 or email   neil.west@belvoir.co.uk

What is really happening in the Cheltenham property market?

In Cheltenham, property prices are 3.2% above the level that was achieved in the 2007 property boom (before it went pop in early 2008 with the credit crunch). The cost of living has increased by 19% over the last seven years too, so the money that Cheltenham property owners  would get from the property would actually be 15.8% lower (19% inflation cost of living less 3.2% above the 2007 boom) than if they’d sold in 2007.

Average Cheltenham house prices are in a constant state of microflux. Over the last couple of years, the trend has been in an upward direction. The price of a typical Cheltenham home increased by just 0.3% in November (yet rose 1.5% to 1.6% per month in the Spring of 2014 ). Looking at monthly figures can be dangerous, so looking at the Land Registry figures, the annual rate of Cheltenham house price growth moderated in the latter months of 2014 to leave us 10.1% higher than at the start of 2014.

The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months. Mortgage approvals declined by almost a fifth between January and May, and there has also been some softening in forward looking indicators, such as new buyer enquiries. But on the other side, with the labour market strengthening, landlords are looking for a home for their savings, mortgage rates are expected to remain low and with consumer confidence rising activity is likely to recover in the months ahead.

The interesting thing about the Cheltenham property market over 2014 was the high proportion of terraced houses sold. In fact, more terraced houses sold even though the town itself has a high propensity of flats. The average price a terraced house sold for during 2014 was £235,670, whilst the average price achieved for a flat/apartment was £186,701 and the average price achieved by a semi-detached property was £266,308.

It all comes down to doing your homework, asking questions of the agent and the owners. Find out their motivation for selling and see if you can ‘bag that bargain’. Trust me they are still out there. I can look at the whole of the market and give you an honest opinion on its investment potential.

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