Despite the less comfortable tax environment landlords and investors now face, it is a myth that the Aylesbury buy-to-let market is on the ropes. While the changes represent a moving of the goal posts, the number of opportunities for anyone willing to adopt a hard-headed business approach has significantly grown.
The average monthly rent across England and Wales is £942 per month, up 3.3% on a year ago. Rental growth has been held back by the glut which occured just before by the stamp duty increase in 2016, and wage stagnation. Both those factors are set to become a thing of the past and rents will start to rise more strongly.
Over the last 10 years, the amount of rented properties in Aylesbury have increased by 80.8 per cent. Today, there are 1,311 properties rented locally, 21.9 per cent of the entire local housing stock. One bedroom properties average £630 per month, two bedroom properties average £763 per month, and three bedrooms-and-up average from £961. Before tax, you can expect to achieve yields of 4.4 per cent.
Tenants are often painted as the ones who get a rough ride. But they can take some joy from the recent news that lettings fees are set to be abolished, potentially saving them 100s of pounds. A new scheme, build to rent, is also underway and offers tenant’s long-term contracts in buildings specifically built for the rental market. The landlord is replaced by a management company who operate in the building and aim to make the tenants life easier with on-site repairs and maintenance.
Even taking into account the new rules for landlords, there are still plenty of opportunities for wise investors. Interest rates are currently at an all-time low (0.25 per cent), and there are plenty of attractive buy-to-let mortgages available. There is also the option of taking out an interest-only mortgage, repaying just the interest and reducing your monthly payments. The only caveat being that you’re won’t pay off any of the initial amount borrowed. However, a shrewd investment will see its value increase significantly, and you can make a healthy profit if you decide to sell in the future.
The PRS is evolving, creating plenty of opportunities for canny investors in the process. If you would like to know more about purchasing a buy-to-let property, please don’t hesitate to get in touch with us. We would love to help.
The annual sales split (houses vs flats)
In some parts of the country, the split between house and flat sales is very extreme while elsewhere there is more of a balance. It primarily comes down to how densely populated the area is. Rural, semi-rural and suburban areas are dominated by houses whereas urban districts are awash with flats.
Property prices by house type
The last few years have been something of a rollercoaster ride for property markets up and down the country and our area is no different. Here we show how prices of different house types have changed relative to one another over time.
Local occupancy ratings
Some people rattle around in their home like two beans in a can whilst others are packed in like sardines in a tin. There is a formula, created by the Office for National Statistics which gives the occupancy rating of each home. This number shows whether a property has the 'right' number of rooms given the number of people living there. This shows the picture in our local housing market.