81.6% of Crawley Properties have 3 or more bedrooms – Problem or Opportunity?

The orthodox way of classifying property in the UK is to look at the number of bedrooms rather than its size in square metres (although now we are leaving the EU – I wonder if we can go back to feet and inches?). It seems that homeowners and tenants are happy to pay for more space. It’s quite obvious, the more bedrooms a house or apartment has, the bigger it is likely to be. The reason being not only the actual additional bedroom space, but the properties with more bedrooms tend to have larger / more reception (living) rooms. However, if you think about it, this isn’t so astonishing given that properties with more bedrooms would typically accommodate more people and therefore require larger reception rooms.
In today’s Crawley property market, the Crawley homeowners and Crawley landlords I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive and which ones may detract from the price. Over time, buyers’ and tenants’ wants and needs have changed. In Crawley, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say Pound Hill or Southgate can command a price nearly 50% higher than a similar house in an ‘average’ area. However, after location, the next characteristic that has a significant influence on the desirability, and thus price, of property is the number of bedrooms and the type (i.e. Detached/ Semi/Terraced/Flat).
In previous articles, I have analysed the Crawley housing stock into bedrooms and type of property, but never before now have I cross-referenced type against bedrooms. These figures for the Crawley Borough Council area make fascinating reading. It shows 81.6% of all properties in the area have 3 or more bedrooms

	Detached	Semi-detached	Terraced (including end-terrace)	Flat
1 bedroom	26	60	106	383
2 bedrooms	90	547	1,255	2,544
3 bedrooms	1,186	3,959	9,115	255
4 bedrooms	2,006	1,143	1,216	16
5 or more bedrooms	580	212	212	5

I was genuinely surprised at the low numbers of one and two bed properties, especially 2 bed semis detached houses, especially as tenants like the smaller one and two bed properties in Crawley. You see, it might interest the homeowners and landlords of Crawley, that there has been a change in the numbers of properties on the market and the split in bedrooms on the market over the last 12 months

·         12 months ago, 21 one bed properties were for sale in Crawley, today 45, a rise of 114%

·         12 months ago, 67 two bed properties were for sale in Crawley, today 84, a rise of 25%

·         12 months ago, 130 three bed properties were for sale in Crawley, today 146, a rise of 12%

·         12 months ago, 92 four bed properties were for sale in Crawley, today 79, a drop of 14%

·         12 months ago, 38 five + bed properties were for sale in Crawley, today 30, a drop of 21%

 

It can quite clearly be seen more Crawley properties have become available, which can only be good news for Crawley first time buyers and Crawley buy to let landlords looking for a bargain (especially post Brexit) as property prices have stopped rising at the silly rates they were 12/18 months ago.

 For several years Crawley buy-to-let investors have been the only buyers at the lower end (starter homes) of the market, as they have been enticed by high tenant demand and attractive returns. Some Crawley landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first-time buyers. This is great news for first time buyers ... but one final note for Crawley landlords ... all is not lost ... you can still pick up bargains, you just need to be a lot more savvy and do your homework

Crawley Property Investment in Hayling Court, Broadfield

With an increasing number of price reductions appearing in the property listings there seems to be a choice of properties for landlords who are looking to invest for the first time or add to their portfolio.  I have seen this 2 bedroom flat in popular Hayling Court have its sale price reduced by the current agent Homes Partnership.  You can view the details by clicking the link below:

http://www.rightmove.co.uk/property-for-sale/property-55795333.html

I have always found Hayling Court to be a popular choice with tenants.  The block is well maintained and offers easy access to any tenant requiring the FastWay bus network to Gatwick or the mainline stations.  A tenant with a car would make use of the garage and the easy access to the M23 from Junction 11.  The flat itself has 1 double and 1 single bedroom which helps to peg the rent at a slightly lower level and make the flat affordable for a couple with 1 child.  Is £190,000 a bargain price for a flat in Hayling Court – probably not.  But I would expect a rent of £885 which would result in a yield of over 5.5% based on the current listing price.  Restrictions on buy to let mortgages are coming but rates are at their lowest level.  L&C Mortgages are showing a deal that has a fixed payment of under £400 per month for the first two years provided a £40,000 is paid as a deposit for the property.  Landlords will also need to factor in the stamp duty charge of £7000 for this flat.  If you are considering advice on a buy to let purchase or looking to sell a property you can contact me at the Martin & Co office in Crawley or call me on 01293 735000. 

Hayling Court, Broadfield, Crawley