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6,921,432 People use Coventry Train Station a year – How does that affect the Coventry Property Market?

It might surprise you that it isn’t always the poshest villages around Coventry or the swankiest Coventry streets where properties sell and let the quickest. Quite often, it’s the ones that have the best transport links. I mean, there is a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Coventry, I am frequently confronted with queries about the Coventry property market, and most days I am asked, “What is the best part of Coventry and its villages to live in these days?”, chiefly from new-comers.  Now the answer is different for each person – a lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Official figures recently released state that, in total, 9,507 people jump on a train each and every day from Coventry Train station. Of those, 3,687 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to London is £5,760 a year.

So, if up to £21.24m is being spent on rail season tickets each year from Coventry, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place. That means demand for middle to upper market properties remains strong in Coventry and the surrounding area and so, in turn, these are the type of people whom are happy to invest in the Coventry buy to let market – providing homes for the tenants of Coventry…

The bottom line is that property values in Coventry would be much lower, by at least 3% to 4%, if it wasn’t for the proximity of the railway station and the people it serves in the city

And this isn’t a flash in the pan. Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested. This has resulted in a huge surge in rail travel.

Overall usage of the station at Coventry has increased over the last 20 years. In 1997, a total of 2,110,537 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 6,921,432 people using the station (that’s 19,015 people a day).

Graph

The juxtaposition of the property and the train station has an important effect on the value and saleability of a Coventry property. It is also significant for tenants – so if you are a Coventry buy to let investor looking for a property – the distance to and from the railway station can be extremely significant.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station. That is why Rightmove displays the distance to the railway station alongside each and every property on their website.

For more thoughts on the Coventry Property market – please visit CoventryPropertyMarket.co.uk

 

To see the value of your property, please visit Newman.uk.com where you can get an instant onlive valuation of your own property.

For more information, hints & tips, please call me on 024 7650 0005.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

I am also contactable via email: heenay@newman.uk.com

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

Coventry Rents rise by 14.8% since 2005

 

The Coventry Property Market is a very interesting animal and has been particularly fascinating over the last 12 years when we consider what has happened to Coventry rents and house prices.

 

There’s currently much talk of what will happen to the rental property market following Brexit. To judge that, I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to judge rationale and methodically, the possible ramifications for long-term investors in the Coventry property market. You see, an important, yet overlooked measure is the performance of rental income vs house prices (i.e. the resultant yields over time). In Coventry (as for the rest of Great Britain), notwithstanding a slight drop in 2008 and 2009, property rentals have been gradually increasing.

 

The income from rentals has been progressively increasing over the last 12 years. Today, they are 14.8% higher than they were at the beginning of 2005. In fact, over the last five years, the average growth has been 1.4% per annum. From a landlord’s point of view, increase in average rental income is not to be sneered at. However, the observant readers will be noting that we are ignoring an important factor – our friend inflation.

 

Turn the clock back to 2005, and we have a property being rented for say £900 a month and that is still being rented at £900 a month today, in Spring of 2017. While the landlord is not getting any less income, this £900 is no longer worth as much. Let me explain, in 2005, £900 may have bought a two-week 4* holiday in Italy. Yet, holidays have increased in line with inflation (which has been 38.5% since 2005), so our holiday would cost today £1,246 (£900 + 38.5% inflation = £1,246). Therefore, the landlord could no longer afford the same holiday, even though having the same amount in pound notes from their rental property.

 

This means when we compare rents in Coventry to inflation since 2005, Coventry landlords are worse off today, when they receive their monthly rental income, than they were in 2005 by 23.7% in real terms (rents increased by 14.8% since 2005, less the 38.5% inflation since 2005 – net affect 23.7% drop)

 

However, rental income is not the only way to generate money from property as property values can increase. Although in the short term, cash flows are diminishing, many Coventry landlords may be content to accept that for a colossal increase in capital value.

Graph

Property values in Coventry have risen by 36.6% since 2005

 

This equates to a reasonably salubrious 2.8% per annum increase over the last 12 years. Even more interesting that this includes the 2008/9 property crash, this will make those Coventry landlords and investors feel a little better about the information regarding rents after inflation.

 

Moving forward, the prospects of making easy money on buy to let in Coventry have diminished, when compared to 2005. Last decade, making money from buy to let was as easy as falling off a log – but not anymore.

 

It would be true to say, my rental income verses property prices study does lead to noteworthy thoughts. I am often asked to look at my landlord’s rental portfolios, to ascertain the spread of their investment across their multiple properties. It’s all about judging whether what you have will meet your needs of the investment in the future. It’s the balance of capital growth and yield whilst diversifying this risk.

 

If you are investing in the Coventry property market, do your homework and do it well. While some yields may look attractive, there are properties in many areas that do not have the solid rudiments in place to sustain them. If you are looking for capital growth, you might be surprised where the hidden gems really are. Take advice, even ask your agent for a portfolio analysis like I offer my landlords. The clear majority of agents in Coventry will be able to give a detailed analysis of past and anticipated investment opportunity (especially the awful effect of inflation) on your portfolio. However, if they can’t help – well, you know where I am, the kettle is on!

For more information, hints & tips, please call me on 024 7650 0005.

 

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

I am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

Tuesday’s Tip’s – Letting Your Property – BONUS

 

Welcome back! So I hope you’ve enjoyed the first series of Tuesday’s Tip’s. This episode is a little long but please stays until the end where I’ve got a surprise for you, by way of a Thank You! So for your bonus tips of this series, I’d like to take a few steps back. As a Landlord, you’ll be assessing the success of your investment property by looking a profit, return on investment, impact on your lifestyle etc. A large part of this is going to be your ability to increase income and lower your costs.

So talking specifically about costs, your biggest recurring cost is likely to be when you’re refurbishing the property with new bathroom’s, new kitchens etc. So to use a bit of Investor Lingo! I’m going to call the time between refurbishments your property’s Lifecycle. The tip’s I’ve been giving you in this series has been about extending the property’s Lifecycle.

Bonus Tip One – To track the performance of your investment, you want the property’s Lifecycle to be no less than 10 years with no more than 4 tenancies. If the Lifecycle is shorter, you’ll end up paying too much in refurb costs. If you have more tenancies, the wear and tear will be too high and you’ll end up spending too much in refurb costs!

Bonus Tip Two – If your kitchen units start looking really tired and need replacing, consider having them professional re-finished. The video shows a kitchen I’ve just had refinished. This kitchen is nearly 9 years old and looks like new. A replacement kitchen was quoted at £4k – £5k. This re-finish cost me just over £1000!!

Bonus Tip Three – If it’s only been 5-6 years since the last refurb and the property already looks like it needs another, I would seriously consider allowing pets, specifically large dogs. If the property needs a refurb in the next year or so, what’s the problem/risk? You might even find they stay in your property for longer than the average family tenant.

So Thanks again for watching. I really hope you enjoyed the first series.

For more information, hints & tips, please call me on 024 7650 0005.

 

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

I am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

Coventry’s housing affordability hits a ratio of 5.57 to 1

 

A Coventry homeowner emailed me last week, following my article posted in the Coventry Property Blog about the change in attitude to renting by the youngsters of Coventry and how they thought it was too expensive for first time buyers to buy in Coventry.  There can be no doubt that buy to let landlords have played their part in driving up property values in Coventry (and the UK) and from that made housing a lot less affordable for the 20 and 30 somethings of Coventry.

 

In the email, they said they thought the plight of the first-time buyers in Coventry was like a novice tennis player, playing tennis with Andy Murray. If you played him once you will unquestionably lose and if you were to play him 100 times you would lose 100 times. That is what they thought it was like for all the 20 something’s first time buyers of Coventry going against all the buy to let landlords.

 

They went on and asked if the Bank of England (BoE) should be tasked to control house price inflation in the same way as the BoE controls inflation.  The BoE has a target for the annual inflation rate of the Consumer Prices Index of 2%, whilst it is also required to support the Government’s economic policy, including its objectives for growth and employment.  So, should BoE be charged with containing buy to let housing market, by possibly changing the rules on the loan-to-value (LTV) ratio’s?

 

So, let’s look at how affordable Coventry is?  The best measure of the affordability of housing is the ratio of Coventry Property Prices to Coventry Average Wages, (the higher the ratio, the less affordable properties are).   (i.e. looking at the table below, for example in 2014, the average value of a Coventry property was 4.84 times higher than the average annual wage in Coventry).

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 (EST)
2.50 2.82 3.21 4.51 5.00 4.97 4.58 4.52 4.84 5.57

Graph

This deterioration in affordability of property in Coventry over the last couple of years has been one of the reasons why the younger generation is deciding more and more to rent instead of buy their own house.

… but it’s not the only reason.

A quick look on Money Supermarket today found 169 lenders prepared to offer 75% LTV Buy to let Mortgages and none at 85% LTV.  Lenders have self-imposed a high level of entry for buy to let landlords (i.e. putting down at least 25% of the purchase price in cash).  The BoE don’t need to meddle there!  Also, the Tories have certainly done lots to level the playing field in favour of first time buyers.  For nearly a year now, Landlords have had to pay an additional 3% in stamp duty on any buy to let purchase and over the coming four years, tax rules on landlord’s claiming mortgage interest relief will affect their pocket.  Neither, it doesn’t help that the local Authority sold off council houses in the Thatcher years and so for many on low incomes or with little capital, owning a home has simply never been an option (today or in the past).

It’s easy to look at the headlines and blame landlords.  First time buyers have been able to access 95% LTV mortgages since 2010, meaning even today, a first-time buyer could purchase a 2 bed apartment in Coventry for around £120,000 and only need to find £6,000 deposit.  Yes, a lot of money, but first time buyers need to decide what is important to them.  Either save up for a couple of years to save the deposit and go without two annual foreign holidays, the full Satellite or Cable TV package with Sports and Movies costing three figures a month, the latest mobile phone and out socialising … or not as the case maybe?

I think we as a Country have changed … renting is returning to be the norm.  So my opinion is, landlords have it tough.  Let’s not blame them for the ‘perceived’ woes of the nation … because to be frank … we haven’t always been a country of homeowners.  Roll the clock back to 1964, and nationally, 30% of people rented their home from a private landlord – today – its only 15.3% nationally.

Graph 1.png

If you are an existing landlord or someone thinking of become a first-time landlord looking for advice and opinion and what (or what not to buy in Coventry), one source of information is CoventryPropertyMarket.co.uk

For more information, hints & tips, please call me on 024 7650 0005.

 

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

I am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

VIDEO – Tuesday’s Tip’s – Letting Your Property – PART FIVE

 

Tip 16 – Make sure the application fee’s aren’t too high that it put’s off applicants.
Tip 17 – Understand the tenants requirements and then match the benefits of your property. There’s no point talking about the local school if the applicants are looking to move out due to the bad attitude of their current landlord!
Tip 18 – Use an offer form which both you and the tenant signs, to record any agreements. Its a new relationship and you don;t want to start off on the wrong foot due to mis-understandings.
Tip 19 – Make sure you’re legally compliant.
Tip 20 – ALWAYS use an impartial 3rd party inventory clerk to do the inventory and check out.

Thanks for watching and make sure you check back next week for a massive tip which will make/save you LOADS of money!

For more information, hints & tips, please call me on 024 7650 0005.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

I am also contactable via email: heenay@newman.uk.com

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

VIDEO: Coventry Market Insight, March

 

Welcome Back. A massive Congrats and Thanks! to all our landlords who put their faith in us. We appreciate that our advice, hints and tips can sometimes contradict what other agents and so called experts are telling you and that it is a leap of faith on your part. Thank You for giving us the opportunity and having faith in us.

So the achievements we’re most proud of accomplishing for our Landlords, in March are:-

  1. All out Student Properties were reserved by Mid-March; giving our Landlords peace of mind of full occupancy from September 2017.
  2. Over 40% of our Lets only took us 24 hours; from marketing to offer agreed!
  3. 4 of the Lets Agreed were being marketing by another agent for at least 2 weeks without success. All 4 achieved the full asking price and deposit as well as on the Landlords terms.

 

Our passion is to help more Landlords to become even more profitable whilst further reducing risks. If you are a Landlord looking for similar, please contact me on 02476500005. It would be a pleasure to play a positive role in your success.

 

For more information, hints & tips, please call me on 024 7650 0005.

 

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

I am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Coventry Rents To Rise Quicker Than Coventry Property Prices In Next 5 Years

The next five years will see an interesting change in the Coventry property market. My recent research has concluded that the rent private tenants pay in Coventry will rise faster than Coventry property prices over the next five years, creating further issues to Coventry’s growing multitude of renters. In fact, my examination of statistics forecasts that ..

 Graph

By 2022, Coventry rents will increase by 22%, whereas Coventry property values will only grow by 17%.

 

Let me explain why I have come to those conclusions:

 

Over the last five years, property values in Coventry have risen by 35.6%, whilst rents have only risen by 15.1%.

 

Throughout the last few years, and compounded in 2016, tenant demand for rental properties continued to go up whilst the Press predicted some landlords expect to reduce their portfolios in the next couple of years, meaning Coventry tenants will have fewer properties to choose from, which will push rents higher. In fact, talking to fellow property professionals in Coventry, there appears to be privation and shortage of new rental properties coming on to the Coventry lettings market.

 

Landlords have some intriguing challenges ahead of them in the coming years most notably in that the Tory’s have changed the taxation rules for landlords in the way buy to let properties are to be taxed. On top of that, there is the ban on letting agent fees which is still to come into force (probably in 2018). When that happened in Scotland in 2012, Scottish letting agents passed on those fees to their landlords, who in turn increased the rent they charged to their tenants.

 

All I would say to Theresa May and Philip Hammond is that they must be wary about indicating both red and green lights at the same time to the private rented sector. They can’t expect the armies of small private landlords to continue to house around a fifth of the population and then tax the hell out of them. They didn’t invest in buy to let as a charity or to satisfy any philanthropic urges. Something has to give – and that will be significant rent rises over the coming few years (and before anyone gives me any derogatory comments about landlords … if it wasn’t for landlords buying all these buy to let properties over the last 15 years, I am not sure where everyone would be living today – because most the Council houses were sold off in the 1980’s!).

 

With the challenges ahead, with the ‘B’ word (that’s budget if you wondered!), house price inflation will be tempered over the coming five years in Coventry. As I have discussed in previous articles, the number of properties on the market in Coventry remains close to historic lows, which is both good as it keeps houses prices relatively stable, yet not so good as it impedes choice for buyers… and hence why I believe property values in Coventry will only be 17% higher in five years’ time.

 

Whilst on the other side of the coin, with the challenges facing landlords and the significant shortage of new homes being built, Coventry people still need somewhere to live. If those people aren’t buying houses and the local authority aren’t building council houses in there thousands (because they have no money), with the average rent for a Coventry rental property currently standing at £1,107 per month …

 

Over the next five years, I predict the average rent

in Coventry will rise to £1,350 per month

 

These are interesting times. There is still money to be made in buy to let in Coventry – Coventry landlords will just need to be smarter and more savvy with their investments.

Tuesday’s Tip’s – Letting Your Property – PART FOUR

 

Welcome back to this weeks episode of Tuesday’s Tip’s; a prevention rather than cure guide for landlords wanting a smooth and prosperous tenancy. This week, I’ve given you a few tip’s when arranging and booking viewings.

Tip 11 – Try to speak to applicants in the evenings or weekends;when they are in a safe, relaxed and priovate environment to be able to discuss details of their life, you’ll want to know.

Tip 12 – Vet the applicants before you arrange a viewing to ensure you get the right tenants for your property type and tenancy needs

Tip 13 – Offer viewing times before and after work or at weekends; when tenants can focus on your property rather than getting back to work.

Tip 14 – Arrange viewing times at 15-20 mintue intervals; enough time for applicants to view your property in privacy, but not too long. Its a positive if an applicant sees the previous viewer fill out an application form.

Tip 15 – Remember to take the right set of keys!.

 

Thank You for watching this week. Please check back for Part Five next week.

 

For more information, hints & tips, please call me on 024 7650 0005.

 

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

Im am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.