Remember that a slowing housing market is an opportunity for the property investor who can supply good quality sought after rental properties for a growing market.
There are daily reports about how Brexit has effected the housing market and many of these are based on the larger agents and the London market which was beginning to slow late last year. If we are not careful we will allow these stories to drag down the housing markets across the country, but this is todays challenge when instant reporting on the news and social media means an instant reaction quite often without any thought process. Just look at the initial panic the day after the referendum vote which has now eased to a more controlled reaction to a process that is going to take at least 2 years.
Looking at the local market which is the property market we should be asking the local property experts about we can see that not having risen as fast as the London market it has not had the reaction of reversing in the same way, but we have seen an easing in the sales market.
The property prices in Dunstable, Houghton Regis and Leighton Buzzard are still very affordable compared to the London market and the towns in between. This means demand continues for buyers and renters in our area and with large companies still investing locally we are still seeing a strong tenant demand for good quality property.
As an investor you are still looking for a bargain to purchase that might require some investment, but will provide a good home for a tenant. These are proving more difficult to find, but with 2 bedroom house prices in Dunstable and Houghton Regis at around the £200,000 mark I was surprised to see this one still on the market at £150,000 having been first listed in November 2015 ! There must be some room in there for an offer ?
Having checked the agents own website it is still listed so presumably still available. A 2 double bedroom semi-detached house with a conservatory and a potential rental valuation of £850-£875pcm. Yes it is dated and will require some modernisation but even after the cost of modernisation is factored in you are likely to be looking at a rental yield of close to 6%. Did I hear someone say the bank base rate is now 0.25% ? Where else would you invest your money ?
Daniel Bourke is the owner of Belvoir Lettings Dunstable and in his previous career in Architecture he was an Associate in a leading London Architectural practice