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

2 Bed Flat Denmark Road 6.3% Yield

We have let quite a few of these flats in Holland Court, over the years and I just spotted this one on the market with Andrews. It is on the market for just short of £100,000 and will let for £525 PCM easy. You will have a service charge but it  wont be much here. The communal areas here are always kept in tip top condition and the flats are always very popular as rentals.

                              http://www.zoopla.co.uk/for-sale/details/17500278

Why not give Andrews a call and take a look. It looks ready to go! If you would like any advice on this or any other property, then please do email me on neil.west@belvoir.co.uk.

One Bed - Hatherley 5.2% Yield

Not many one bed houses become available , so when I spotted this one with Andrews, I thought I would let you know about it. On the market for £134,950, this will let for £575/£595 PCM , which is yield of 5.2%. As I say not many one bed houses around so they always let well, particularly in good areas like this.

                             http://www.zoopla.co.uk/for-sale/details/35935790

This is a great " safe " bet for landlords who don't like taking many risks and I recommend that you take a look ASAP. If you would like advice regarding this or any other property, please do contact me neil.west@belvoir.co.uk

£113 Million – the total rent paid by Cheltenham tenants a year.

In the last few months, politicians in Westminster have decided to step into an area which affects many of us - property. Anyone who rented property in the 1970s and 1980s knows the difficulties of tenancy agreements from that era which allowed the tenant the right to stay in the property for life. In some cases, tenancies could be transferred to their children, rents could not be increased and tenants could not be removed. One of the suggestions by the  one of the parties is rent controls. With more than 4.4 million people renting 3.4 million properties in England alone, it was clear that this could be a policy that was purely playing with the sentiments of these tenant voters.

Under the current legislation, tenants are already in a position to challenge rent increases that are unreasonable and they have the advantage of giving a months’ notice to the landlord (when the tenancy is a rolling agreement ie periodic tenancy) . But do rents need capping? Well in Cheltenham, there are 22,471 people renting 10,260 rental properties. The average rent of a Cheltenham property in 2008 was £883 per month. If Cheltenham landlords had raised the rents in line with inflation, (which sounds a very fair to anyone), as inflation has been a total of 19% since 2008, the average rent in Cheltenham should be today £883 + 19% = £1,050. At this moment in time, the average in Cheltenham is £923.. and those figures are being repeated all around the UK.

However, restricting rent rises in the future could put more properties back on the market for sale as it would destroy the confidence in the housing market. In turn, this would reduce property prices. With less property available to rent, and a lack of interest from potential investors (due to the poor yields) this policy would end up creating a shortage of affordable housing.

Even with the vast increase in renting in Cheltenham over the last ten years, 12.07% of property being rented in 2001 to 20.1% in 2011, the number of homeowners in Cheltenham only dropped by 4.9% (there were 34,201 homeowners in 2001 in Cheltenham, but it only dropped to 32,879 homeowner households by 2011 in Cheltenham). It is clear that the changes to the law of tenancy agreement made in Housing Act 1988 resulted in benefits to both landlords and tenants. The law has made it easier to rent a property and at the same time, the Assured Shorthold Tenancy gives the tenants a right to quiet enjoyment of the property for a period of time. Yes, the total rent paid by Cheltenham tenants is an awful lot of money, £113 million a year in fact, but as rents are free to move up, but just as important down, why fix what isn’t broke?

P.S. For those who are interested the total rent payable by tenants in Gloucester is £75 Million

Don't laugh , a great opportunity!

Ok its not pretty, in fact its pretty grim. However this could be a great investment opportunity. On the market for £60K , spend £30K , who knows ? and then for £90K, you've got a great 2 bed terrace property. Rent it for £525 PCM ( or more ) - 7% yield ! If you don't want to rent it out ,then sell it on.

                              http://www.zoopla.co.uk/for-sale/details/35995713

I think if you are serious about a project, then this is one to look at. Be careful though with the figures. I know a great builder if you want some idea of refurb costs. If you want some advice on this or any other property, then please contact me on neil.west@belvoir.co.uk .

PS  Listed today with The Property Centre  -  I bet its sold within a week!

Gloucester Apartments - 1 beds or 2 beds ?

Last week, I spoke to one of my landlords and she asked me if the number of bedrooms in a property had any relationship to the return she could get. I did some research and followed up her query – I was actually quite surprised with the results.

Currently in Gloucester, the average rent for a one bed property is around £426 per month with an average value of £80,300. This means an approximate return/yield of 6.36% per year. This is of course the average. There are one bed apartments on the market for rent at a higher price than some two bed apartments. In fact, some one bed apartments in Gloucester can attract rents in the early  £700's whilst some converted terraced houses with flats in them can be rented for as little as £300 per month. This means yields on one beds can range between 5% and 7%.

Two bed apartments in Gloucester can be priced anywhere between £190,000 in modern upmarket developments in the Gloucester Docks area and as low as £70,000. Again, rents can be quite varied, ranging from over £800 per month to £400 per month. However, looking at the average rent for a two bed apartment in Gloucester, I calculate it to be £573 per month with the average value being £118,700 which gives a return/yield of 5.79% per year.

Whilst there is a little difference in the yields when it comes to the number of bedrooms, it is only one of many factors you should consider before buying a property. Whilst two bedrooms are more expensive to buy, they will always let better. Do they sell better? Well, 38.3% of the two bed apartments on the market in Gloucester at this moment in time are sold stc compared to 34.7% of 1 bed apartments – so the answer is yes, but not much difference though.

It really comes down to the property and type of tenant. Two beds attract sharers, which brings both advantages and disadvantages to the landlord but one beds have better yields. It depends what you want from your investment. I know the lettings market in Gloucester so I can advise you what you can expect to achieve in rent .I don't make a penny out of you buying something from another agent, I make my money ensuring I can find the best tenants for the best properties. If you would like any advice on choosing properties, come and see us at our office on Worcester Street, Gloucester.

Are yields of 6.48% per year on the Hesters Way area the best Cheltenham has to offer the investor?

Are yields of 6.48% per year on the Hesters Way area the best Cheltenham has to offer the investor?

I regularly talk to landlords about investing in Cheltenham . Following a discussion with one of them last week, he asked me to look into the Hesters Way area, and whether it was a good place for him to invest in.  There was a 3 bed semi up for sale in mid November with Guide Price of £125,000. Average rents in these types of properties have risen by 13.4% since 2008, which is amazing considering average rents in Cheltenham are in fact only 4.5% higher (on average) than those being achieved in 2008.

Let’s say you bought  it for £125,000, the achievable rent can be in the order of £660 to £675, depending how much effort you have put into presenting it; but being sensible, we are still looking at a yield in the region of 6.4% to 6.5% per year ... yields that are only normally achieved in risky HMO’s (Houses of Multiple Occupation ie Student housing .. with the fun and games that brings!). Property values since 2000 have risen, according the Land Registry, in Cheltenham, by 92.5% but looking at the properties that sold in 2000 and again more recently, average increases in property values in the Hesters Way area have been in the region of 109.3% over the same time frame.

So is this an investors paradise – great rental growth, great yield and great capital growth?. Well, all is not as it seems. This is a great example of the headline numbers (yield and capital growth) being not the only factor to consider when choosing an investment property, as you should also consider how long it takes to find a tenant. The average time it takes to find a tenant in the Hesters Way area can be up to six to eight weeks, whereas in most other parts of Cheltenham a tenant is usually found in one or two weeks. If you take into account the extra five or six weeks of void period for your property,  every six to nine months, because tenants in areas in such as the Hesters Way area tend to have a high propensity to move more regularly and the extra fees a landlord has to pay each time a tenant moves in and out, the annual overall return from the property is lower than it seems.

We can help you to find the best investment property with our specialist lettings advice. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on Bath Road, Cheltenham or email me on neil.west@belvoir.co.uk

Two Bed Cheltenham 5.3% Yield

This 2 bed property is on the market with Andrews at £145k. It looks as if it may need some work , so if you allow £10,000 that would make a total investment of £155K. The property should let for £695 PCM and that would give you a yield of 5.4%

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

This would make a great buy to let investment. An opportunity to add value and a reasonable yield to boot.
I doubt if this will be around long , so don't delay and contact Andrews for a viewing. If you would like some advise on this or any other property, please contact me on neil.west@belvoir.co.uk

Who owns what property in Gloucester?

Last week, I was talking to a couple from the Maisemore, Gloucester, about them potentially investing in the Gloucester property market for Buy to Let for the first time. As my regular readers will note, the most important consideration you will make before investing in property is the balance between annual return/yield and the annual value increase/capital growth. However, what affects those two things (yield and capital growth) in Gloucester are very varied and complex. The quantity of property and whether property is owner occupied, social housing or private renting has a big difference on yield and capital growth.

The growth in home ownership in Gloucester, which started in the 1950’s, continued through the 1960s and, by 1971, the proportion of owner occupiers was equal to those renting (private and council). By 1981, 62.8% of Gloucester households were owner occupied and, for the first time, the proportion of rentals (private and council) was less than home owners. By 1991, it reached home ownership had risen to 73.5%. Roll into the 21^st Century and in 2001, there was hardly any change in the tenure structure in Gloucester, as owner occupation stayed relatively unchanged at 74.08%. The significant change over the decade (1991 to 2001) was within the rental sector, where the proportion of households privately renting increased for the first time since 1918. In fact, 8.68% of households were privately renting in 2001, while those socially renting (council housing) had decreased to 10.45%.

Between 2001 and 2011, the number of households in Gloucester rose, after over 5,000 houses were built in City, taking the number of households from 45,765 to 50,863, an increase of 10%. Also, the percentage of households that were owner occupiers in Gloucester dropped significantly to 67.2% (from the previously quoted 74.08% in 2001).

However, that doesn’t tell the full story, because whilst there was a significant drop in the percentages (74.08% to 67.2%), the actual numbers tell a completely different tale. Of the 33,903 households in Gloucester that were owner occupied in 2001, that figure had only dropped to 33,858 households being owner occupied .. so with only 45 less owner occupier houses, why the huge drop in percentages? 

In 2001, 3,971 houses were privately rented (8.68%) in Gloucester but roll on another ten years and there are 8,012 households in Gloucester that are privately rented (15.9%). The rapid increase in the number of households privately renting in Gloucester could be linked to the decline in the number of households getting on the housing ladder, usually by way of a mortgage. This is mainly because of the increasing difficulty for first time buyers being able to raise deposits for a mortgage, which haven’t been helped by high property prices. The average Gloucester house price for those who were first time buyers increased by 55.9% between 2001 and 2011. This meant larger deposits which are linked to the house price, were required.

Having this knowledge of the Gloucester property market to hand enables me to give to my landlords the best advice on what (or not) to buy for buy to let. Irrespective of you are a landlord with another agent or someone who is thinking of dipping their toe in the water for the first time as a buy to let landlord, if you want to pick my brains on any matter to do with the Gloucester property market, please feel free to pop through the door of our offices on Worcester Street or send me an email to neil.west@belvoir.co.uk

1 Bed Flat Gloucester - 6.7% Yield

This very well presented one bed flat is for sale with Michael Tuck. On the market for £79950, this should let for £450.00 PCM and that a yield of 6.7%

                             http://www.zoopla.co.uk/for-sale/details/33699372

First floor , well presented, parking, great location for hospital. Give Tucks a call and arrange a viewing. 
If you would like any advise regarding this or any other property, please do contact me on neil.west@belvoir.co.uk

2 bed Cheltenham - 5.3% Yield

This two bed apartment is on the market with Northwoods for £125,000. Very popular area near GCHQ, so appeals to professionals. This one has two double bedrooms and an en-suite bathroom , so great for sharers

                             http://www.zoopla.co.uk/for-sale/details/35283864

Looks in good condition so would require little effort to turn round and let. Don't forger service charges in your calculations. Why not give Northwoods a call and ask for more details. If you would like advise on this or any other property, please do contact me.

Whaddon property market outperforms Charlton Kings’s by 131%

A couple from Gloucester came to our office to discuss potentially investing in property for Buy to Let in Cheltenham after reading the ‘Cheltenham and Gloucester Property Blog’. I reminded them that one of the most important considerations you will have to make before investing is considering the balance between annual return/yield and the annual value increase/capital growth of the property that you buy.

One of the most sought after places to live in is Charlton Kings on the South Easterly side of Cheltenham. There are 4,463 households in Charlton Kings and an impressive 3,715 of those households (83.2%) are owner occupied, yet only 435 of those households (or 9.7%) are privately rented. Charlton Kings is a very popular area with buyers and tenants alike.  The average value of a property is £406,000 and the average rent is £1,036 pcm (this equates to an average yield is 3.06% per year).  Interestingly, the majority of properties sold in Charlton Kings over the last 12 months were detached properties selling for an average price of £666,300, whilst semi-detached properties sold for an average of £306,300 and terraced houses achieved an average price of £253,500.  Whaddon on the other hand is a different story altogether. Only 1,273 of the 2,443 Whaddon households are home owners (52.1%) and surprising only 244 private rental properties (9.9%), the rest being made up of local authority owned housing.

With this in mind, I carried out some further research and found that three bedroom terraced and semi-detached houses in Whaddon have outperformed those detached houses in Charlton Kings. This is because a three bedroom mid terraced / semi-detached house on Whaddon have been selling on average recently for £125,700 and the achievable rents have been £741 per calendar month. The yield which could be achieved from property in Whaddon is therefore around 7.07% per year. When we compare this to the possible 3.06% per year yield on Charlton Kings, that yield/return is 131% proportionally higher in Whaddon than Charlton Kings.

We must remember however that yield is not the sole consideration when investing in Buy to Let properties. Areas which offer good yields (ie Whaddon), normally suffer from poor capital growth (ie the properties in the area with poor yields don’t up in value as quick as the posher areas.) Looking at average property values in Charlton Kings back to 2002, the average property in Charlton Kings has risen by 91.7% to today. However, average values in Whaddon have only risen by 72.1% in the same time frame.  It just goes to show, do you want yield or you want capital growth when in investing in buy to let property?

If you would like more information on investing in Cheltenham’s property market, please call me on 01242 221188 or visit our office on the Bath Road or email me on neil.west@belvoir.co.uk

2 Bed Maisonette - 6.3% Yield

                             http://www.zoopla.co.uk/for-sale/details/35630332

Just spotted this great 2 bed maisonette that is being marketed with Movearound. This would make a great rental property and will let for at least £500 PCM giving a yield of 6.3% . Don't forget that there will be a ground rent to pay and a service charge.If you would like some advice about this or any other property , please do contact me.  

Three bed - Springbank- 5.1 % Yield

                            http://www.zoopla.co.uk/for-sale/details/35589901

This three bed property is on the market with Peter Ball. Priced at £185K , it should let for around £795 PCM  giving a yield of 5.15%. Family homes are always in great demand and tenants stay longer on average than they do in flats. This would make a good, steady , long term let for an investor who does not want to take too many risks. If you are interested in some advise on this or any other property, please contact me.

Two Bed - Tredworth - 6.0 % Yield

                             http://www.zoopla.co.uk/for-sale/details/35551279

This two bedroom terrace property has just come onto the market with Andrews at £100,000. With some TLC, this could make a great rental property. Lets say you spend £10,000 on it , then you could expect a rent of around £550 PCM which would give you a yield of 6.0%. Not bad and you have added value. 

If you are looking for a good yield on a relatively low investment, then this may be for you. Best to contact Andrews quickly to take a look. If you would like advice on this or any other property, then please contact me at neil.west@belvoir.co.uk 

Cheltenham and Gloucester Property Market – What is going to happen in 2015?

I had an interesting chat with a landlord who uses another letting agent in Cheltenham after he popped into our office. We got taking about both the Cheltenham and Gloucester property markets, as he lived in Cheltenham but most of his buy to let properties were in Churchdown and Gloucester and thought other homeowners and landlords might be interested. Whilst the housing markets are so different, with average property prices being almost 50% more in Cheltenham (the average value of a property in Cheltenham is £302,900 compared to Gloucester’s at £204,700), there are a lot of similarities between the two place’s property markets.

You see, property values didn’t stop dropping in Cheltenham and Gloucester until December 2011 (and if I am being honest, there was a very minor dip around Christmas of 2012), so after a strong run over the last 23 months (starting in January 2013), the ever upward drive of house price rises has started to turn with increases now at an almost standstill for the first time since the start of 2013. Now it could be said this easing of the housing market in Cheltenham and Gloucester can be attributed partly to the time of year (in 2013 property values in Cheltenham and Gloucester dropped by 0.1% in November), it is obvious that estate agents in Cheltenham and Gloucester are wary about the direction of the market as a result of the not as strong demand and fewer house sales.

With the uncertainty of a possible interest rate rise, new mortgage rules, a general election on the horizon and recent warnings of a house price bubble. Although the main indicators suggest that buyers will start to gain the upper hand, especially with the new stamp duty rules announced recently by George Osbourne. However, there are many homeowners who don’t need to sell and won’t bother unless it’s economically beneficial to do so, but most homeowners are homebuyers, so what they loose with one they gain with another.

On the one hand going for high yielding Cheltenham and Gloucester property to rent out seems an obvious choice (in say Barton, Matson and Whaddon) but high yielding property often doesn’t go up in value that well and in some circumstances doesn’t keep up with inflation, meaning in real terms you have a depreciating. So surely you should pick a property that has great capital growth then, because of the obvious potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties (in areas such as Charlton Kings, Prestbury and Upton Saint Leonards) tend to be low meaning if you are taking a high percentage mortgage, the rent doesn’t pay the mortgage payments.

This is all good news for landlords looking to buy rental property with the changes in stamp duty and later in 2015, the new rules regarding pensions, where you will be able to take money out of your pension pot to invest in property. However, at the same time, I would say don’t just buy any old property in Cheltenham and Gloucester. First time landlords need to be cautious. The doubling of house prices every seven to ten years which has taken place since WW2 doesn’t seem to have been seen since the mid 2000’s. The property market is shifting with more properties being built and restrictions put on mortgage lending, the likelihood of the property market increasing at the same levels as the past is questionable. But investing in property is also about receiving the rent.

If you want to chat about property investment in the either Cheltenham or Gloucester, either pop into our offices on Bath Road in Cheltenham or Worcester Street in Gloucester or email direct on neil.west@belvoir.co.uk  and I look forward to speaking to you soon 

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.