Sought After Northgate

2 Bed Flat For Sale

Now don’t let the photo’s put you off, this two bedroom property in Northgate is one of those that could be described as a buy to let banger.  With 2 double bedrooms and a separate kitchen they make ideal properties for a whole range of tenants, sharers, couples and young families.  This flat in Oak Way has been listed by the local King & Chasemore branch – you can view the listing by clicking the link below.

http://www.rightmove.co.uk/property-for-sale/property-40145625.html

We let one of these just before Christmas at £925.00 per calendar month, that’s a gross yield of 5.5%.  The Northgate area of Crawley is sandwiched between the Town Centre and Manor Royal making it ideal for anyone that commutes to London or works for the major employers such as Virgin or Thales on the industrial estate.  The no.10 Fastway bus, which runs 24 hours a day to Gatwick, stops just a few minutes from the flat.  Being leasehold there are service charges to take into account but the local authority is the freeholder meaning that you will only reimburse what is actually spent on maintaining the block.  For advice on the likely rental of any property in Crawley please feel free to contact me.

Langley Green Corker with 5.8% Gross Yield

With the rising prices throughout the town the pressure on yields has been steadily increasing leaving landlords with fewer opportunities.  I spotted that this two bedroom maisonette being marketed with local agent, Choices, has just been reduced in price.

http://www.rightmove.co.uk/property-for-sale/property-52959433.html

I let a similar property just before Christmas for £975pcm which would give a cracking 5.8% gross yield.  Langley Green is an established area that is handy for town, handy for Manor Royal industrial estate and handy for Gatwick.  With a private garden and two double bedrooms this would make a corker of an investment that has a wide appeal for singles, couples, young and old alike.

Reduced Maisonette in Langley Green

Crawley Housing Shortage

8.7% rise in Crawley Property Values adds weight to the town’s Housing Crisis

Crawley’s continuing housing shortage is putting the town’s (and the Country’s) repute as a nation of homeowners ‘under threat’, as the number of houses being built continues to be woefully inadequate in meeting the ever demanding needs of the growing population in the town.   My parents moved to Crawley in the 70’s and the other day at a family get together; the subject of the Crawley Property market came up in the conversation (as I am sure it does at many family parties in Crawley) after the weather and politics. My parents said It used to be that if you went out to work and did the right thing, you would expect that relatively quickly over the course of your career you would be buying a house, you would go on holiday every year, you would save for a pension.   But now things seem to have changed?

Back in the Autumn, George Osborne, used the Autumn Statement to double the housing budget to £2bn a year from April 2018 in an attempt to increase supply and deliver 100,000 new homes each year until 2020.  The Chancellor also introduced a series of initiatives to help get first time buyers on the housing ladder, including the contentious Help to Buy Scheme and extending Right to Buy from not just Council tenants, but to Housing Association tenants as well.

Now that does all sound rather good, but the Country is only building 137,490 properties a year (split down 114,250 built by private builders, 21,560 built by Housing Associations and and a paltry 1,680 council houses).    If you look at the graph (courtesy of ONS), you will see nationally, the last time the country was building 230,000 houses a year was in the 1960’s.

 

How George is going to almost double house building overnight, I don’t know, because using the analogy of a greengrocers; if people want to buy more apples (i.e. houses) in a greengrocers’ shop, giving them more money (i.e. with the Help to Buy scheme) when there's not enough apples in the first place doesn't really help.

Looking at the Crawley house building figures, in the local authority area as a whole, only 160 properties were built in the last 12 months, split down into 110 privately built properties and 50 housing association with not one council house being built.   This is simply not enough and the shortage of supply has meant Crawley property values have continued to rise, meaning they are 8.7% higher than 12 months ago, rising 1.0% in the last month alone.

I was taught at school (all those years ago!), that’s it’s all about supply and demand, this economics game.   The demand for Crawley property has been particularly strong for properties in the good areas of the town and it is my considered opinion that it is likely to continue this year, driven by growing demand among buyers (both Crawley homebuyers and Crawley landlords alike). You see Crawley’s economy is quite varied, meaning activity is expected to remain relatively strong into the early Summer of 2016, especially as some Crawley buy to let landlords try to complete purchases ahead of the introduction of new stamp duty rules in April.

.. and of supply, well we have spoken about the lack of new building in the town holding things back, but there is another issue relating to supply.   Of the existing properties already built, the concern is the number of properties on the market and for sale.   The number of properties for sale last month in Crawley was 337, whilst three years ago, that figure was 458 whilst five years ago it stood at 946… a massive drop!

With demand for Crawley property rising, minimal new homes being built and less properties coming onto the market, that can only mean one thing ... now is a good time to be a homeowner or landlord in Crawley.  

A Commuters Dream

To be "Close to Three Bridges Station" is top of many prospective tenants requirements and you can't get much closer than this 1 bedroom ground floor flat located in the ever popular Maunsell Park development that Martin & Co Crawley have been lucky to list for sale.   

Maunsell Park Development

The spacious flat benefits from direct access to the communal gardens from the kitchen, the lounge and bedroom offer a good sized space and the bathroom has been refitted.   You can view further details by clicking the link below.

http://www.martinco.com/property/for-sale/233640

The property is ideally situated with Three Bridges station just a stones throw away offering a direct service to London Victoria and London Bridge.  In the other direction there is a direct service to Brighton, Chichester and Southampton.  For a more local service the No.20 Fastway bus service to Gatwick Airport can be accessed at the station and there are a number of local shops and amenities only a few minutes walk from the front door.

Achieving a gross yield of 5% the property would make an excellent BTL investment, the property has been rented for the past few years and a rental income in the region of £825 per calendar month is expected.  I know from experience that property in this development is always highly sought after & the lucky landlord that buys this property can expect minimal void periods over the lifetime of the investment.  

If you have any questions on this or any other rental property investment don’t hesitate to get in touch.

Perfect Pound Hill Pad

Every town has its favoured neighbourhoods and Pound Hill is a contender for Crawley's most sought after.  Easy access to the M23 junction 10 and the mainline railway station at Three Bridges make it ideal for commuters.  The highly rated schools in Pound Hill and neighbouring Three Bridges ensure property is in high demand and prices are high.    

Chepstow Close, Pound Hill

Shillan, the Pound Hill based agent have just listed this one bedroom maisonette in Chepstow Close, Pound Hill.

http://www.rightmove.co.uk/property-for-sale/property-40107930.html

Having its own outside space and allocated parking will tick the boxes of many prospective tenants and help achieve the higher end of the rental price guide of £825 per calendar month.  The property looks to be in "move in" condition that will appeal to property investors looking to achieve a quick let.  Over the last ten years the property value and the rent have both increased at the same pace, both are showing a 30% increase compared to the 2006 levels.

Property prices have certainly moved upwards over the past 24 months but investing in good quality properties in sought after areas will ensure they remain tenanted with good quality tenants whatever happens to the housing market.  One bedroom properties with gardens have a wide appeal to young singles or couples but would also appeal to older tenants looking for a long term rental.

If you have any questions on this or any other residential property investment in the Crawley area you are welcome to contact me for advice.

5,386 Crawley Homes bought by private landlords in the last 20 years – Is this the end for first time buyers?

5,386 Crawley Homes bought by private landlords in the last 20 years – Is this the end for first time buyers?

 

It’s been a while since my last blog post, rents have rocketed, house prices have rocketed, the government has increased taxes to landlords and landlords are now doing the job of immigration officers.

We’ve been mulling over the changes in the office and I thought I’d I would share with you that conversation, my Crawley property Blog reading friends. People are always going to need a roof over their heads and somewhere to live will never go out of fashion – it’s a necessity for every single person. The 22 to 30 year olds of the town have a choice to what type of roof they have ... they rent from the Council, they can rent from a private landlord or finally they can get a mortgage and buy one. In the 1970’s/80’s and 90’s, the expected thing was to save like mad for two years for the deposit (going without luxuries) whilst living at home or renting a cheap two up two down, then buy your first house. However, more recently fewer Crawley youngsters have been buying, choosing to rent instead – mainly from private landlords (as Councils have been selling off council housing on the Right to Buy Schemes). The numbers are truly staggering ... and I want to share them with you.

Roll the clock back 20 years and Crawley was a different place. There were 35,201 households in Crawley and 20,631 of those were owner occupied. Move to the present, and with all the building in the town, the total number of households has increased by 21.9% to 42,925 and quite surprising (to me at least), the number of owner-occupiers has increased to 25,303 (although as a proportion, it is only 58.9% compared to 58.6% twenty years ago).

However, it’s rented sector that is truly fascinating … twenty years ago, only 1,535 properties were privately rented in Crawley ... and now its 6,921, a rise of 5,386.

The twentysomethings of Crawley housing difficulties haven’t been helped by the local authority selling off council housing, with the number of council houses dropping from 10,320 to 7,950 over the same twenty-year period. Demand for decent rented property remains high, as Cameron’s much vaunted house building program is years away and has decades of under investment to catch up on before it starts to affect demand. Even with the Buy to Let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing the people of Crawley and those who educate themselves and treat it as a business will survive and prosper.

 

Maidenbower, Crawley - Popular with landlords, sought after by Tenants

The best way Crawley landlords can protect their income from property (and mitigate the affects of the tax rises) is to keep the homes they let out in Grade A condition. I have found, especially over the last three or four years, Crawley tenants have ever growing demands from their rental property, but many are prepared to pay ‘top dollar‘ for houses and apartments that meet their high expectations. You must not forget, letting property in Crawley (in fact anywhere) is a business, so all private landlords should also seek the advice, opinion and commentary of property professionals.

What of the news of Stamp Duty changes for Landlords coming in April?  My thoughts are with such low supply (i.e. numbers of property for sale), and high demand it is hard to imagine Crawley property values will see much impact – but I predict, ever so slightly, the proportion of owner occupiers should increase slightly compared to buy to let landlords in the coming decade as the the housing market should return to balance. For any help or advice you can reach me and my team at the Martin & Co office in Crawley.