I miss the good old days of George Osborne as Chancellor, with his hardhat and hi-vis jacket. He must have visited every new home building site in the UK with his trademark attire! For the last few years, the nearest Philip Hammond got to donning a ‘Bob the Builder’ outfit was at his grandchild’s birthday party. However, with what appears to be a change in focus by the Tories to ensure they get back in power in 2022, they appear to have fallen in love with house building again with the Chancellor’s promise to create 300,000 new households in a year.
Nationally, the number of new homes created topped 217,344 last year, the highest since the financial crash of 2007/8. Looking closer to home: in total there were 1,773 ‘net additional dwellings’ in the last 12 months in the Central Bedfordshire Council area, a decent increase of 135% on the 2010 figure.
The figures show that 94% of this additional housing was down to new build properties. In total, there were 1,673 new dwellings built last year in Central Bedfordshire. In addition, there were 111 additional dwellings created from converting commercial or office buildings into residential property and a further 24 dwellings were added as a result of converting houses into flats.
While these all added to the total housing stock in the Central Bedfordshire area, there were 35 demolitions to take into account.
I was encouraged to see some of the new households in the Leighton Buzzard area had come from a change of use. The planning laws were changed a few years back so that, in certain circumstances, owners of properties didn’t need planning permission to change office space in to residential use.
With the scarcity of building land available locally (or the builders being very slow to build on what they have, for fear of flooding the market), it was pleasing to see the number of developers that had reutilised vacant office space into residential homes in the local council area. Converting offices and shops to residential use will be vital in helping to solve the Leighton Buzzard housing crisis especially, as you can see on the graph, that the level of building has hardly been spectacular over the last seven years!
Now we have had the autumn budget, Theresa May and Philip Hammond have set out their stall with housing as their key focus. I was glad to see the Government introducing a variety of changes to improve housing, including more funding for the supply side and an injection of urgency into the planning system.
The biggest question is, just where are the Government going to build all these new houses? Maybe a topic for a future article?
Back to the main point though and the focus on the housing market by the Tory’s is good news for all homeowners and buy to let landlords, as it will encourage more fluidity in the market in the longer term, sharing the wealth and benefits of home ownership for all. However, in the short term, demand still outstrips supply for homes and that will mean continued upward pressures on rents for tenants.
It’s now been a good 12/18 months since annual rental price inflation in Leighton Buzzard peaked at 3.3%. Since then we have seen increasingly more humble rent increases. In fact, in certain parts of the Leighton Buzzard rental market over the autumn, the rental market saw some slight falls in rents. So, could this be the earliest indication that the trend of high rent increases seen over the last few years, may now be starting to buck that trend?
Well, possibly in the short term, but in the coming few years, it is my opinion Leighton Buzzard rents will regain their upward trend and continue to increase as demand for Leighton Buzzard rental property will outstrip supply, and this is why.
The only counterbalance to that improved rental growth would be to meaningfully increase rental stock (i.e. the number of rental properties in Leighton Buzzard). However, because of the Government’s new taxes on landlords being introduced between 2017 and 2021, that means buy-to-let has (and will) be less attractive in the short term for certain types of landlords (meaning less new properties will be bought to let out).
Interestingly, countless market experts assumed at the start of 2017, that the number of rental properties would in fact drop throughout the year. The assumption being as the new tax rules for landlords started to kick in, landlords looked to kick their tenants out, sell up and invest their capital elsewhere. (Although ironically that would lower supply of rental properties, decreasing the supply, meaning rents would increase again!).
Anecdotal evidence suggests, confirmed by my discussions with fellow property, accountancy and banking professionals in Leighton Buzzard, that Leighton Buzzard landlords are (instead of selling up on masse), actually either (1) re-mortgaging their Leighton Buzzard buy-to-let properties instead or (2) converting their rental portfolios into limited companies to side step the new taxation rules.
The sentiment of many Leighton Buzzard landlords is that property has always weathered the many stock market crashes and runs in the last 50 years. There is something inheritably understandable about bricks and mortar – compared to the voodoo magic of the stock market and other exotic investment vehicles like debentures and crypto-currency (e.g. BitCoin).
Remarkably, there is some good news for tenants, as Tory’s recently published the draft Tenants’ Fee Bill, which is designed to prohibit the charging of tenants lettings fees on set up of the tenancy. However, looking at evidence in Scotland, I expect rents to rise to compensate landlords, thus hammering faithful tenants looking for long-term tenancy agreements the hardest. This growth will be on top of any usual organic rent growth. It really is swings and roundabouts!
So, what does this all mean for landlords and tenants in Leighton Buzzard? In my considered opinion,
Rents in Leighton Buzzard over the next 5 years will rise by 8.9%, taking the average rent for a Leighton Buzzard property from £844 per month to £919 per month.
To put all that into perspective though, rents in Leighton Buzzard over the last 12 years have risen by 20.7%. In fact, that rise won’t be a straight-line growth either, because I have to take into account the national and local Leighton Buzzard economy, demand and supply of rental property, interest rates, Brexit and other external factors. Please see the graph for my projections
In the past, making money from Leighton Buzzard buy-to-let property was as easy as falling off a log. But with these new tax rules, new rental regulations and the overall changing dynamics of the Leighton Buzzard property market, as a Leighton Buzzard landlord, you are going to need work smarter and have every piece of information, advice and opinion to hand on the Leighton Buzzard, Regional and National property market’s, to enable you to continue to make money.
One place for that information is the Leighton Buzzard Property Market blog www.leightonbuzzardpropertyblog.com/blog
As the winter months draw in and the temperature starts to drop, keeping one’s home warm is vital. Yet, with the price of gas and electricity rising quicker than a Saturn V rocket and gas, oil and electricity taking on average 4.4% of a typical Brit’s pay packet (and for those Brit’s with the lowest 10% of incomes, that rockets to an eye watering 9.7%), whether you are a tenant or homeowner, keeping your energy costs as low as possible is vital for the household budget and the environment as a whole.
For the last 10 years, every private rental property must have an Energy-Performance-Certificate (EPC) rating. The property is given an energy rating, very similar to those on washing machines and fridges with the rainbow coloured graph, of between A to G (A being the most efficient and G the worst). New legislation comes in to force next spring (2018) for English and Welsh private landlords making it illegal to let a property that does not meet a certain energy rating. After the 1st of April next year, any new tenant moving into a private rented property or an existing tenant renewing their tenancy must have property with an energy performance rating of E or above on the property’s EPC and the new law will apply for all prevailing tenancies in the spring of 2020. After April 2018, if a landlord lets a property in the ‘F’ and ‘G’ ratings (i.e. those properties with the worst energy ratings) Trading Standards could fine the landlord up to £4,000.
Personally, I have grave apprehensions that many Leighton Buzzard and Dunstable landlords may be totally unaware that their Leighton Buzzard or Dunstable rental properties could fall below these new legal minimum requirements for energy efficiency benchmarks. Whilst some households may require substantial works to get their Leighton Buzzard and Dunstable property from an F/G rating to an E rating or above, my experience is most properties may only need some minor work to lift them from illegal to legal. By planning and acting now, it will mitigate the need to find tradespeople in the spring when every other Leighton Buzzard and Dunstable landlord will be panicking and paying top dollar for work to comply.
Whilst there is money and effort involved in upgrading the energy efficiency of rental property, a property that is energy efficient will have greater appeal to tenants and other buy-to-let landlords/investors and this will enable you to obtain higher rents and sale price (when you come to sell your investment).
So, how many properties are there in the area that are F and G rated .. well quite a few in fact. Looking at the whole of the Central Bedfordshire Council area, of the 12,612 privately rented properties, there are ..
478 rental properties in the F banding
107 rental properties in the G banding
That means just over one in 21 rental properties in the Leighton Buzzard, Dunstable and surrounding area has an Energy Performance Certificate (EPC) rating of F or G. From April next year it will be illegal to rent out those homes rated F and G homes with a new tenancy.
Talking with the Energy Assessors that carry out our EPC’s, they tell me most of a building’s heat is lost through draughty windows/doors or poor insulation in the roof and walls. So why not look at your EPC and see what the assessor suggested to improve the efficiency of your property? I can find the EPC of every rental property in Leighton Buzzard and Dunstable, so irrespective of whether you are a client of mine or not, don’t hesitate to contact me via email (or phone) if you need some guidance on finding out the EPC rating or need a trustworthy contractor that can help you out?
I had the most interesting conversation the other day with a local Leighton Buzzard accountant, who asked me about my articles on the Leighton Buzzard property market. It was quite humbling to be given praise by such a professional, when he commented enthusiastically on the articles I write. He was particularly interested with the graphs, facts and figures contained within them – so much so he recommended his clients read them, as most of them were either Leighton Buzzard homeowners, Leighton Buzzard landlords and a lot of the time - both. However, one question that kept me on my toes was, “With so many House-Price-Indices, how do you know which one to use and how can you calculate what is exactly happening in Leighton Buzzard?”
To start with, there are indeed a great number of these Indices, including the Land Registry, Office of National Stats, Halifax, Nationwide and LSL to name but a few. The issue occurs when these different house price indices give diverse pictures of the state of the UK housing market. Whilst some indices measure the average value of every property in the UK (sold or unsold), others measure the average ‘price-paid’ of houses that happen to be sold over a fixed time scale… confusing isn’t it!
A lot of the variance between house price indices occurs because of the distinctive ways in which the numerous indices endeavour to beat these issues. You see, the biggest problem in creating a house-price-index when comparing and contrasting with most other indexes (e.g. inflation where the price a ubiquitous tin of Beans can easily be measured over the months and years), is every home is unique and as Leighton Buzzard people are only moving every 13 years, it appears the only thing that can be measured is the price of property sold in a given month.
By their very nature, all of the indices are only able to paint a picture of the whole of the UK or, at best, the regional housing market. As I have said many times in my articles on the Leighton Buzzard property market, it is important to look to the medium term when considering house price inflation/deflation. Looking at the month-to-month jumps, many indices look like one of those jumpy lie-detector needles you see in the cold war movies!
I can guarantee you in the coming few months, on a month-by-month basis, one or more of the indices will say property prices will have dropped. Let me tell you, no property market indices are representative of the housing market in the short term. Many indices have shown a drop around the Christmas and New Year months, even the boom years of 2001 to 2007 and 2013 to 2015.
So, back to the question, how do we work out what is happening in the Leighton Buzzard Property Market and can there be a Leighton Buzzard House Price Index?
To calculate what I consider is a fair and proper House Price Index for Leighton Buzzard, I initially needed to decide on a starting place for the index. I have chosen 2008 as far enough away, but still gives us a medium/long term view. Next, I split all the house sales into their types (Detached/Semi/House /Apartment) to give us an indication of what is actually selling by postcode district. So, for example, below is a table for the LU7 postcode district (the sample shows 2008, 2016 and 2017.
Then I look at the actual numbers of properties sold in the LU7 postcode district. Below is the graph with the numbers for the years already mentioned.
Next, I have looked at the prices paid for those types for every year since 2008, again in this example using the sample years of 2008, 2016 and 2017 for the LU7 postcode.
Finally, I amalgamated the same data points for the other postcode districts covered by Leighton Buzzard and the surrounding villages, weighted it accordingly, to produce the Leighton Buzzard House Price Index ... which after all that work, currently stands at for Q4 2017 at 162.81 (Q4 2008 = 100).
I hope you found that of interest and over the coming months and seasons, I shall refer back to Leighton Buzzard House Price Index in my Leighton Buzzard Property Blog to give you a flavour of what is really happening in the Leighton Buzzard Property Market
In the credit crunch of 2008/9 the rate of home moving plunged to its lowest level ever. In 2009 the rate at which a typical house would change hands slumped to only once every 21.5 years. The biggest reason being that confidence was low and many homeowners didn’t want to sell their home as Leighton Buzzard property prices plunged after the onset of the financial crisis in 2008. However, since 2009, the rate of home moving has increased (see the table and graph below), meaning today:
The average period of time between home moves in
Leighton Buzzard is now 13 years.
This is an increase of 61.39 per cent between the credit crunch fallout year of 2009 and today, but still it is a 20.56 per cent drop in moves by homeowners, compared to 15 years ago (The Noughties).
So why aren’t Leighton Buzzard homeowners moving as much as they did in the Noughties?
The causes of the current state of play are numerous. In last weeks article I talked about how ‘real’ incomes and savings had been dropping. Another issue is the long-term failure in the number of properties being built. Only a few weeks ago in the blog, I was discussing the draconian planning rules meaning house builders struggle to locate building land to actually build on.
Back in the 1960’s and 1970’s, as a country, we were building on average 300,000 and 350,000 households a year. The Barker Review a few years ago said that for the UK to stand still and keep up with housing demand (through immigration, people living longer, a just under 50% increase in the number of households with a single person since the 1980’s and family makeup (i.e. divorce makes one household now two)) we needed to build 240,000 households a year. Over the last few years, we have only been building between 135,000 and 150,000 households a year.
Finally, as the UK Population gets older, there is no getting away from the fact that a maturing population is a less mobile one.
So, what does this mean for Leighton Buzzard homeowners and landlords?
Well, if Leighton Buzzard people are less inclined to move or find it hard to sell a property or acquire a new one, they are probably less likely to move to an improved job or a more prosperous part of the UK.
Many of the older generation in Leighton Buzzard are stuck in property that is simply too big for their needs. The fact is that, in Leighton Buzzard and Central Bedfordshire, nearly five out of every ten (or 49.8 per cent) owned houses has two or more spare bedrooms; or to be more exact ...
38,123 of the 76,617 owned households in the Central Bedfordshire
area have two or more spare bedrooms
So, as their children and grandchildren struggle to move up the housing ladder, with those young families bursting at the seams in homes too small for them i.e. overcrowding, we have a severe case of under-occupation with the older generation - grandparents staying put in their bigger homes, with a profusion of spare bedrooms.
Regrettably, I cannot see how the rate of properties being sold will rise any time soon. Many commentators have suggested the Government should give tax breaks to allow the older generation to downsize, yet in a recent White Paper on housing published just weeks before the General Election, there was no reference of any thoughtful and detailed policies to inspire or support them to do so.
This means that there could be an opportunity for Leighton Buzzard buy to let landlords to secure larger properties to rent out, as the demand for them will surely grow over the coming years. As for homeowners; well those in the lower and middle Leighton Buzzard market will find it a balanced sellers/buyers market, but will find it slightly more a buyers market in the upper price bands.
Interesting times ahead!
The average house price in Leighton Buzzard is 10.61 times the average annual Leighton Buzzard salary. This is higher than the last peak of 2008, when the ratio was in the region of 6.33. A number of City commentators anticipated that in the ambiguity that trailed the Brexit vote, UK (and hence Leighton Buzzard) property prices might drop like a stone. The point is - they haven’t.
Now it’s true the market for Leighton Buzzard’s swankiest and poshest properties looks a little fragile (although they are selling if they are realistically priced) and overall, Leighton Buzzard property price growth has slowed, but the lower to middle Leighton Buzzard property market appears to be quite strong.
Scratch under the surface though, and a different long-term picture is emerging away from what is happening to property prices. Leighton Buzzard people are moving home less often than they once did. Data from the Office of National Statistics shows that the number of properties sold in 2016 is again much lower than it was in the Noughties. My statistics show…
Even though we are not anywhere near the post credit crunch (2008 and 2009) low levels of property sales, the torpor of the Leighton Buzzard housing market following the 2016 Brexit vote has seen the number of property sales in Leighton Buzzard and the surrounding local authority area level off to what appears to be the start of a new long term trend (compared the Noughties).
Interestingly, it was the 1980’s that saw the highest levels of people moving home. Nationally, everyone was moving on average every decade. Even though it was during the Labour administration of the late 1970’s where the right to buy one’s council house started, it was the Housing Act of 1980 that that really got council tenants moving, as Thatcher’s Tory government financially encouraged council tenants to buy their council-rented homes - for which countless then sold them on for a profit and moved elsewhere. The housing market was awash with money as banks were allowed to offer mortgages as well as the existing building societies, meaning it made it simpler for Brits to borrow even more money on mortgages and to climb up the housing ladder.
But coming back to today, looking at the property sales figures in the Leighton Buzzard area since 2010/11, a new trend of number of property sales appears to have started. Interestingly, this has been mirrored nationally. The reasons behind this are complex, but a good place to start is the growth rate of real UK household disposable income, which has fallen from 5.01% a year in 2000 to 1.68% in 2016. Also, things have deteriorated since the country voted to leave the EU as consumer price inflation has risen to 3% per annum, meaning inflation has eaten away at the real value of wages (as they have only grown by 1.1% in the same time frame).
With meagre real income growth, it has become more difficult for homeowners to accumulate the savings needed to climb up the housing ladder as the level of saving has also dropped from 4.26% of household income to -1.11% (i.e. people are eating into their savings).
My next article will be discussing how these (and other issues) has meant the level of Leighton Buzzard people moving home has slumped to once every 13 years.
Leighton Buzzard homeowners will be among those affected by the latest rise in the Bank of England interest rates. The first increase in 10 years; they have just been raised from 0.25 percent to 0.5 per cent. This uplift comes as inflation hits a 51-month high of 2.9 per cent whilst the national unemployment rate is at an all-time low of 4.3 per cent.
Interestingly, the Governor of the Bank of England has indicated that the interest rate is likely to increase again over the next couple of years, but Mr Carney said mortgages and savings would not be affected in the short term. However, look at all the big banks and just about all of them have increased their standard variable mortgage rate..
The average Leighton Buzzard mortgage is £121,034
I have to ask by how much Leighton Buzzard homeowners (on variable rate or tracker mortgages) will see their repayments increase?
In the LU7 postcode there are 9,623 homeowners with a mortgage, of which 4,134 have a variable rate mortgage (the remaining have fixed rate mortgages). The total amount owed by those LU7 homeowners with those variable rate mortgages is £500,359,003, meaning the average monthly mortgage payment for those home owners on variable rate mortgages before the interest rate rise was £943.73 per month and now its £968.94 per month … meaning
The interest rate rise will cost Leighton Buzzard
homeowners on average an extra £302.58 per year
Whilst this is the first raise in interest rates in over 10 years, it must be noted it is at a significantly low level compared to figures in the 1970s and early 1990s. Many of my readers talk of interest rates at 17 per cent when Sir Geoffrey Howe increased them to try and combat the hyperinflation (from the fallout of the financial crisis that hit Britain in the 1970’s) and Norman Lamont in September 1992 with the infamous Black Wednesday crisis, when interest rates were raised from 10% to 15% in just one day.
So, what will this interest rate actually do to the Leighton Buzzard housing market?
Well, if I’m being frank – not a great deal. The proportion of Leighton Buzzard homeowners with variable rate mortgages (and thus directly affected by a Bank of England rate rise) will be smaller than in the past, in part because the vast majority of new mortgages in recent years were taken on fixed interest rates. The proportion of outstanding mortgages on variable rates has fallen to a record low of 42.3 per cent, down from a peak of 72.9 per cent in the autumn of 2011.
If more Leighton Buzzard people are protected from interest rate rises, because they are on a fixed rate mortgage, then there is less chance of those Leighton Buzzard people having to sell their Leighton Buzzard properties because they can’t afford the monthly repayments or even worse case scenario, have them repossessed.
However, and this will be of interest to both Leighton Buzzard homeowners and Leighton Buzzard buy to let landlords …
.. for every 1% increase in the Bank of England interest rate, it will cost the average Leighton Buzzard homeowner on a variable rate mortgage £100.86 per month
So, what next? Because UK inflation levels are at 2.9 per cent (the country’s highest rate since April 2012) and the Bank of England is tasked by HM Government to keep inflation at 2 per cent using various monetary tools (one of which is interest rates) – you can see why interest rate rises might be on the cards in the future as increasing interest rates tends to dampen inflation.
Now of course there is a certain amount of uncertainty with regard to Brexit and the negotiations thereof, but fundamentally the British economy is in decent shape. People will always need housing and as we aren’t building enough houses (as I have mentioned many times in the Leighton Buzzard Property Blog), we might see a slight dip in prices in the short term, but in the medium to long term, the Leighton Buzzard property market will always remain strong for both Leighton Buzzard homeowners and Leighton Buzzard landlords alike.
I recently read a report by the Yorkshire Building Society that 54% of the country has seen wages (salaries) rise faster than property prices in the last 10 years. The report said that in the Midlands and North, salaries had outperformed property prices since 2007, whilst in other parts of the UK, especially in the South, the opposite has happened and property prices have outperformed salaries quite noticeably.
As regular readers of my blog know, I always like to find out what has actually happened locally in Leighton Buzzard. To talk of North and South is not specific enough for me. Therefore, to start, I looked at what has happened to salaries locally since 2007. Looking at the Office of National Statistics (ONS) data for Central Bedfordshire Council, some interesting figures came out...
Salaries in Central Bedfordshire have risen by 8.79% since 2007 (although it’s been a bit of a rollercoaster ride to get there!) - interesting when you compare that with what has happened to salaries regionally (an increase of 14.11%) and nationally, an increase of 17.61%.
Next, I needed to find what had happened to property prices locally over the same time frame of 2007 and today. Net property values in Central Bedfordshire are 40.2% higher than they were in late 2007 (not forgetting they did dip in 2008 and 2009). Therefore...
Property values in the Leighton Buzzard area have increased at a higher rate than wages to the tune of 31.41% ... meaning, Leighton Buzzard is in line with the regional trend
All this is important, as the relationship between salaries and property values is the basis on how affordable property is to first (and second, third etc.) time buyers. It is also vitally relevant for Leighton Buzzard landlords as they need to be aware of this when making their buy-to-let plans for the future. If more Leighton Buzzard people are buying, then demand for Leighton Buzzard rental properties will drop (and vice versa).
As I have discussed in a few articles in my blog recently, this issue of ‘property-affordability’ is a great bellwether to the future direction of the Leighton Buzzard property market. Now of course, it isn’t as simple as comparing salaries and property prices, as that measurement disregards issues such as low mortgage rates and the diminishing proportion of disposable income that is spent on mortgage repayments.
On the face of it, the change between 2007 and 2017 in terms of the ‘property-affordability’ hasn’t been that great. However, look back another 10 years to 1997, and that tells a completely different story. Nationally, the affordability of property more than halved between 1997 and today. In 1997, house prices were on average 3.5 times workers’ annual wages, whereas in 2016 workers could typically expect to spend around 7.7 times annual wages on purchasing a home.
The issue of a lack of homeownership has its roots in the 1980’s and 1990’s. It’s quite hard as a tenant to pay your rent and save money for a deposit simultaneously, meaning for many Leighton Buzzard people, home ownership isn't a realistic goal. Earlier in the year, the Tories released proposals to combat the country’s 'broken' housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving bad landlords.
This is all great news for Leighton Buzzard tenants and decent law-abiding Leighton Buzzard landlords (and indirectly owner occupier homeowners). Whatever has happened to salaries or property prices in Leighton Buzzard in the last 10 (or 20) years ... the demand for decent high-quality rental property keeps growing. If you want a chat about where the Leighton Buzzard property market is going – please read my other blog posts on http://www.leightonbuzzardpropertyblog.com/blog or drop me note via email, like many Leighton Buzzard landlords are doing.
Moving to a bigger home is something Leighton Buzzard people with growing young families aspire to. Many people in two bedroom homes move to a three-bedroom home and some even make the jump to a four-bed home. Bigger homes, especially three-bed Leighton Buzzard homes are much in demand and it can be a costly move.
If you live in Leighton Buzzard in a two-bedroom property and wish to move to a four-bedroom house in Leighton Buzzard, you would need to spend an additional £216,766 (or £856.23 pm in mortgage payments (based on the UK Bank average standard variable rate)). However, going straight to a four bed from a two-bed home is quite rare as most people jump from a two to three-bedroom home, then later in life, from a three to four-bedroom home.
So, after being asked my thoughts on moving home in Leighton Buzzard by a friend recently, please find my analysis of the local property market and then some thoughts. To start with, let us see what the average property price is for a Leighton Buzzard property by the number of bedrooms it has.
I then decided to calculate what it would cost to make the jump upmarket from one bedroom to two bedrooms, two to three bedrooms etc, etc, both in actual money and in mortgage payments (using the current standard variable rate of UK Banks of 4.74% - so the mortgage cost could be higher or lower depending on the mortgage taken).
There are some interesting jumps in costs when moving upmarket as a Leighton Buzzard buyer. The cost of moving from one to two beds, and two to three beds is relatively reasonable, whilst the jump from three to four beds in Leighton Buzzard is quite high (and hence why some four bed properties are taking slightly longer to sell nowadays). On an aside, a lesson here for all my landlord property blog readers, you can quite clearly see why the larger 4 and 5 bed properties don’t offer the best returns for buy to let because the monthly finance costs and rents achieved don’t match up so well (i.e. A mortgage for a 4 bed home in Leighton Buzzard would cost you 49.92% compared to a 3 bed mortgage, but the jump in rent would be a lot less than that - although depending on your circumstances, 4 bed homes can offer other advantages to buy to let – pick up the phone if you want to know what they are in more detail).
So, coming back and looking at the stock of properties in Leighton Buzzard, this also makes interesting reading …
The most active purchasers are 20 something and 30 something home-owning parents with growing families. Many look to more modern developments for the perfect balance of access to decent primary schools, commutability and lifestyle. For landlords looking to buy within Leighton Buzzard, they face stiff competition from these 20/30 something families, making the three bedroom Leighton Buzzard home massively in demand, often attracting spirited offers and selling within weeks of listing. This mix of homebuyers and landlords is a pressure point in the Leighton Buzzard property market.
Yet, the cost of an additional bedroom can be too much for some Leighton Buzzard buyers. It is quite challenging moving home the first time, but to then find you are priced out on the next move up the ladder can be quite disconcerting, with families often having to move to a different part of town to get the bigger home they need.
Nevertheless, that’s the place many homeowners find themselves in with the cost of the additional bedroom being too much to bear. To those buying their home for the first time, all I suggest is they not only consider the mortgage payments and other costs of their first home, but also do their homework into their next rung up the Leighton Buzzard property ladder. Thinking about it now will keep you ahead of the game in the future; as your number of bedrooms, family property needs and lifestyle wants change.
..and Leighton Buzzard landlords – well these changes in the way people live also mean there are opportunities to be had in the Leighton Buzzard rental market. Many Leighton Buzzard landlords are starting to pick my brain on this, so if you don’t want to miss out – drop me a line.
Belvoir Dunstable 5 Year Anniversary celebration offer for NEW landlords. NO LANDLORD STARTUP FEES IN NOVEMBER.
The 29th October 2017 marked the 5 year anniversary of the opening of our shop on Church St in Dunstable during which time Belvoir Dunstable were awarded 'Customer Care of the Year 2015 & 2014' and 'New Business of the Year 2013' at the Dunstable Business & Community Awards. We have also just been awarded Gold for Best Letting Agent in Dunstable and Bronze for Best Letting Agent in Bedfordshire by AllAgents an independent review site.
During the last 5 years we have seen great improvements in the town and I am pleased that our decision to open our Belvoir Franchise in Dunstable has proved to be the right choice. I am sure there are still many more improvements to come to Dunstable in the next few years and we look forward to continuing our success and working with landlords, tenants and developers in the future.
To celebrate our 5 Year Anniversary we have a special offer to new landlords who sign up for our fully managed service for a minimum of 12 months. For NEW landlords who sign up in November for a property in the LU5,LU6 and LU7 postcodes to be marketed before the end of 2017 we will charge ZERO landlord fees for this first tenancy. Yes this is a £0 charge by us to the landlord and includes advertising, tenancy agreement, placing the deposit in our Deposit Protection Scheme and the inventory.
Daniel Bourke – Owner Belvoir Dunstable
For more information please call our shop on 01582 343209 or email firstname.lastname@example.org
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