Posts Tagged ‘SurreyLets’

The newspaper you read will probably have an influence on whether you believe the Housing Market in the UK is:

  • performing better with the Brexit vote or
  • struggling and in decline because of the Brexit vote.

Either way, the market post 24th June 2016 (post Brexit) has been in “wait and see” mode and will probably remain in this state until the new year when there will be a decision on the High Court ruling which take place on 5th December and is expected to last 4 days.  It is the view of Sally Asling, Letting Director at SurreyLets that the Housing market will continue to remain in “wait and see” mode until article 50 is served and negotiations to exit truly begin.

So what is a “wait and see” market?

In real terms it means there is a lack of activity unless there is a real need to make a move. Death, Divorce being the two main ones in Sales and Job Relocation or being served notice are the two main ones in letting. If there is no driving need, people are just waiting to see how leaving the EU  pans out and what the market will do, and this of course becomes a self fulfilling prophecy: a general lack of activity leading to what feels like a market slump because it is slow. This aside, what is actually happening to House Prices?

As I write a week or so into November, the latest statistical information we can draw upon takes us up until the end of August 2016 just 8 weeks after the Brexit decision, which isn’t really providing enough of a time lapse to see how the housing market has been affected if it has at all. However, there are encouraging facts in this data that should restore consumer confidence especially if these trends continue which may serve as some encouragement for homeowners thinking of selling but whom are “waiting to see”

House Prices have been in continual growth in 2016

Housing market indicators for August suggested a period of relative stability during the month. House prices grew by 8.4% in the year to August, up slightly from 8.0% in July.Prices in the UK continues to rise with the greatest increase for the year being the East of England with a 13.3 annual change followed by the South East wit
h a 12.2% rise. England as a whole saw a 9.2 rise.
price-changesI accept that sales agreed, pre-Brexit were possibly just going through to completion, but this is still encouraging. No major price drops as a direct result of Brexit –  which I have seen claimed in some scaremongering newspapers.

Shortage of stock on the market

Its clear that up until June there was a lack of stock on the sales market. Looking at data for June 2016 and comparing it to June 2015  England saw a 32.2% drop in the number of units sold. sales-volumes-by-country

Overall, year on year, June 2016 shows a decline from the previous growing trend of properties being sold.

A direct conclusion therefore could be drawn that whilst there is not the volume of property as in previous years on the market, and therefore not so much competition for your home, this has kept house prices rising.

Housing Demand

In terms of housing demand, the volume of lending approvals for house purchases fell slightly in August compared to July, remaining at levels seen in early 2015. Home sales in the UK stayed stable between July and August but remain below levels seen in 2014, 2015 and before the stamp duty changes in early 2016. The Royal Institution of Chartered Surveyors (RICS) market survey for August reported falling new buyer enquiries over the past three months, with demand from buy-to-let investors falling more sharply than demand from first time buyers and existing owners.

Latest news from Zoopla – for KT24

Zooplas Z-index is the current average Zoopla estimate of home values in a given area, and the Z index report for KT24 is £1,034,686. Zoopla shows a month on month rising trend.

The average house price paid in the last three months 17 sales is £998,703.zoopkt24

Fun housing facts for KT24

Highest value streets Zed-Index
The Warren £2,122,830
Beech Avenue £2,096,434
Woodland Drive £1,996,802
Pennymead Drive £1,834,411
Lynx Hill £1,828,226
Highest turnover streets Turnover
Fearn Close 45.5%
Station Approach 42.9%
Tintells Lane 41.2%
Little Cranmore Lane 36.4%
Parkside Close 33.3%

SurreyLets keep a keen eye on what property values are doing in the area as whilst SurreyLets are not an Estate Agency involved in the sale of property, SurreyLets regularly consult with Landlords who which to withdraw equity on their buy-to-Let investments and assist Investors making smart decisions on their portfolio growth.

If you have a property to Let, are considering Letting out your property or would like help and advise in buying an investment property, Sally Asling would be delighted to have an informal, no obligation discussion with you. Please call 01483 282470 or e-mail info@surreyletsonline.co.uk

Data taken from the UK House Price index summery published 18th October 2016 from UK.Gov’s official statistics and from Zoopla.

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A beautifully presented fully refurbished detached 4 bedroom family home situated in a popular and convenient location within the charming village of West Horsley and within a few minutes walk of the highly sought after Raleigh Primary School in West Horsley.

rearThe property is a wonderful example of contemporary and stylish living with a high quality finish, it offers spacious well thought out family living accommodation but also has a purpose built home office attached plus other outbuildings.

Marketed for rental though local agent SurreyLets, Sally Asling, Lettings Director comments  “This property is a really lovely family home inside and out, ideal for families who wish to get their child into the highly sought after Raleigh School, or for families with children already attending. The location is  an easy walk from the village of East Horsley with its fast trains into London Waterloo, an array of local shops including a coffee shop, butchers, bakers and convenience stores and the medial centre village hall and playing fields, this property is incredibly well situated. Priced at just £2995 this property represents excellent value. It is available immediately for a medium to long term let.”

The accommodation comprises of: A spacious open plan Kitchen / dining room, a family snug complete with log burning stove, Utility room and downstairs WC, formal spacious double aspect lounge with views to the garden, small study room or home office, downstairs double bedroom with en-suite shower room ideal for guest accommodation or an au pair.Upstairs the property offers a further spacious double bedroom with ensuite bathroom, two further double bedrooms and a family bathroom.

Externally the property offers wonderful outbuildings consisting of a further utility / laundry room, specially designed worship, a purpose built home office and a double open car barn. The grounds that surround the property lend themselves beautifully to family living and entertaining with an enclosed private rear garden and a paved courtyard.

FEATURES

Beautifully Presented Detached Family Home
Wonderful Quiet Location
Four Bedrooms
Three Bathrooms
Beautifully Fitted Open Plan Kitchen / Dining area
Family Snug with Log Burning Stove
Double Aspect Lounge
Study
Purpose Built External Home Office
Laundry / Utility Room
Workshop and Double Car Barn
Superb Location for The Raleigh School

For viewings please contact SurreyLets on 01483 282470 or mail info@surreyletsonline.co.uk

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SurreyLets are pleased to be able to offer a three bedroom detached family home situated scfronton the boundaries of Ockham, Cobham and Effingham Junction.

The property is available for a Long Term let, is pet friendly and offers generous living accommodation and is on the market for £1275pcm

Lounge with wood burning stove, Dining Room, Fitted Kitchen, Utility Room and Downstairs Cloakroom, access to the single garage, Two double bedrooms, Generous Single Bedroom and a Family Bathroom.

The only appliance let with the property is the cooker which is electric as the property is not connected to mains gas. The heating is by electric radiators which do increase running costs, but is reflective in the rental being charged.

Externally the property has ample room for off road car parking, an enclosed garden area and is within a  woodland setting with no close neighbours.

Properties like this rarely come to market that offer excellent value for money and a long term prospect so early viewing is recommended.  Please call SurreyLets, the Letting Specialists on 01483 282470 or send us a mail to info@surreyletsonline.co.uk

SurreyLets are members of ARLA and the Property Ombudsman

 

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“Where is the happiest place to live?” This is what Rightmove have been asking in its poll guildford-005last month.

Almost 24,000 people completed the survey, based on 12 factors ranging from how friendly their neighbours are to what the local services are like.

The Borough of Guildford was ranked as the 29th happiest place to live in the UK and the 7th happiest region in the South East.

The Nationwide report concluded that people are the friendliest in Shrewsbury in the Midlands yet Walsall also in the Midlands was the least friendly.

Out of 206 entries Guildford ranked in 51st place for its community spirit. Guildford ranked  95th with people saying they had a sense of belonging and lower than average ranking in 126th place with people saying they felt they could earn enough to live comfortably.

Guildford has got happier over the last year it appears as the same survey in 2015 ranked the town at 22.

With picturesque locations across the villages surrounding the town and plenty of great amenities in the town and villages, it’s not hard to see why residents living in the Guildford borough might be feeling content.

SurreyLets responded to the survey saying “Its not surprising that Guildford ranks well in this Survey, but its also not surprising that it is 126th place on the earning and living comfortably scale either as house prices and rents are relatively high”

The area of Guildford is beautiful with many areas of outstanding natural beauty, parks, commons and woodlands. Known as “the lungs of London” as you commute you in just 48 minutes you are a world away from the city and you do feel that you can breathe. Surrey has a plethora of excellent and outstanding schools, diverse and inspiring leisure facilities and an abundance of theatres and entertainment venues. Guildford and the surrounding villages offer something for everyone and its really not hard to see why city-dwellers looking to make the move head for this beautiful area of Surrey.

Of course, the downside of the coin is the shortage of  rental property thats available in all the price ranges. SurreyLets director Sally Asling states “Families leaving London like to rent in an area initially before commuting to making a purchase but due to the high property prices don’t necessarily make the most attractive return on investment, so there is continually a lack of family property ranging from £1500pcm through to £3500pcm especially in the more desirable villages like Effingham, Bookham, East and West Horsley, Clandon and Ripley. There is also a lack of properties available for professional couples looking at settling down to rent – flats and starter homes ranging from 700pcm – £1500pcm are snapped up in a heartbeat of coming onto the market. I would encourage investors to not just look at the monthly ROI but factor in the eventual capital gain that the increasing house prices will achieve given the desirability of the area and the longer term view and the calibre of tenants you will attract.”

For more information about purchasing a property to let (Buy-to-Let) or for help and advice on Letting out your investment property or home please call SurreyLets, a dedicated and specialist Letting Agency.  Please call 01483 282470 or mail us at info@surreyletsonline.co.uk

Keep up to date with Lettings News from Surreylets! Visit our Blog 

 

 

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The proportion of people who own their own home has fallen across every part of the UK since their peak in the early 2000s

The actual number of people in the UK who own their own home hit a historic low last year, when the rise of generation rent meant that fewer people were choosing to buy, instead remaining in rented accommodation and putting strain on the rental market that has been suffering a shortage of supply over recent years. Home ownership in England has fallen to its lowest level in 30 years as the growing gap between earnings and property prices has created a housing crisis that extends beyond London to cities and towns UK wide. Surrey Letting Agent, SurreyLets says this is evident in the number of people renting family homes in the area opposed to buying

“Even with good salaries and healthy deposits, the house prices have risen so much it simply isn’t possible to achieve the multiples on earnings or the large deposits needed to purchase a property in the affluent Surrey villages. It is much cheaper to rent. We are seeing a growing number of tenants renting their main home whilst using their salaries and savings to make wise Buy-to-let smaller investments”

Since the 90’s and into this millennium,   home ownership rose as purchasers were able to take out mortgages with no deposit (or a small deposit) got on the housing ladder.  According to the Nationwide Building society, property was growing at the rate of 20% a year and banks were keen to lend. However, after the credit crunch in 2008 and the tightening of borrowing has seen an end to self certification mortgages, zero deposit mortgages and sensible multiples against salary, properties are simply becoming less and less affordable for people to buy.

To give an example:

A married couple in Effingham, Surrey, solicitors earning 41K each with a take home monthly of 2800pm could obtain a mortgage IRO of £252- 378K av 315K.  Taking a 95% mortgage a deposit of £17500 is needed to purchase a property with a value of 332K if they borrowed 315K.

What 332K will get you in Effingham, Surrey?

At the time of writing there are no properties in this price bracket in Effingham, but if we extend the search a mile we find a one bedroom started house in Edenside Bookham  for £335K  or a 2 bedroom flat in Great Bookham at 335K

Renting or buying?

To rent the one bedroom house in  Edenside Bookham would cost £875pcm a month in rental opppsed to a mortgage on £315K  at a 3% rate costing £1493pm.** The benefit as a tenant is you are not paying for maintaining the property or insuring the buildings. The negative is no equity long term. 
Given that houses  (not flats) in East Horsley start at around £500K a couple moving to the area would need to be earning jointly in the region of 140K **with a 40,000plus deposit to get onto the housing ladder.  However the same couple could afford to rent up to £4,500pcm (according to affordability calculator used by Experian) which may answer why so many families moving into the area are choosing to rent their family home and buy Buy-to-Let properties to get on the housing ladder.

**figures above obtained using the calculator on the money advice service website

Home ownership across England peaked in April 2003, when 71% of households owned their home, either outright or with a mortgage, but by February this year the figure had fallen to 64%, according to the Resolution Foundation.

 

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I write this with a child in year 6 in the oversubscribed, increasingly popular and highly sought after academy that is The Raleigh School in West Horsley. I count myself as privileged and increasingly fortunate. As I write, I am, like a few hundred other parents, waiting to hear if my son has got into The Howard of Effingham School in September. That said, like many others before me, I moved a matter of just one road to be certain of catchment areas for the schools.

Last week I took on a property “To Let” very close to the school and immediately went under e-mail attack. It felt akin to how I imagine Simon Cowell feels at the auditions for the  X-Factor; each  excited applicant streaming “pick me first” and offering on a property before I had even got the key.

It doesn’t matter how you cut it. Its dog eat dog in the world of housing and getting your child into a school.

There is a 5 deep waiting list for most year groups at The Raleigh. To get to the top, after siblings and looked after children ,it all becomes a matter of geography. Roll of the dice, the closer to the school the more chance you have of securing a place. So when a house a stones throw away from the school comes on the market, the stampede starts.

Homes close to the school sell  and let quickly and at a premium. They are sought after. So, when I saw this property come on the market with Curchods this week with an asking price of £775K, potentially giving a potential gross ROI of 4 % I thought it was worthy of a mention as this is a good ROI for this area. You can download the brochure here. Oh, and it really is a “stones throw” away, even with my poor attempt with a pebble! low res drive

 

Located within the popular village of West Horsley, literally a moments walk of the sought after Raleigh Primary School, this immaculate home really does offer everything a family could need.

 

 

The property would realistically let out IRO £2750pcm.  There is 1555q ft of property, making it not a super large home, but the fact that its divided into 5 bedrooms could suit a larger family, and after all, its a larger family who will have the need for the school. The one thing is certain, whilst the school is situated here, this property will always be let!

However, I would be tempted to advise a  would be investor to ditch bedroom 5 and add another bathroom (en-suite) and have it as 4 bed 2 bathrooms opposed to 5 bed and 1 upstairs bathroom. Given we have property only a short way down the road that rents at £2500pcm and lacks the office, this property I believe would rent quickly. We are seeing rentals in the roads surrounding the school average at 30 months which is perfect for long term investors.

If you would like to view this property call Curchods on 01483 281010. If you would like to discuss buying this property to let and would like some impartial free and without obligation advice, then call Sally Asling at SurreyLets on 01483 282470 

 

 

 

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According to a recent report from the Association of Residential Letting Agents (ARLA), residential rental prices are higher in London and the South East than elsewhere, as shown in the graph below. While the UK average weekly rent in 2014 stood at £134, the figures  the South East were £144

ARLA average weekly rental

However, when we look at the commuter areas of The Horsleys, Effingham and Guildford, we see average weekly rentals more in line with the London rentals/ SurreyLets statistics would suggest an average rental for this area to be higher than the averages listed here.

The latest data from the Office for National Statistics (ONS) show a clear North-South divide in rents, with price growth much stronger in the South than in the North of England. Furthermore, price growth has accelerated strongly in London, the East and South East of England compared with a year ago. This may reflect the difficulty of getting on the property ladder in these regions, with high house prices and deposit requirements for purchasing property. This is pushing individuals into the private rental sector.

Arla Year on year rising rentals.

 

In 2015 people living in the South East spent  a fifth of their income on rental. However when we look at areas in definitive commuter belts  such as Cobham, The Horsley’s, Effingham and Guildford where rentals are much higher, this is believed to be closer to 25% eating into a quarter of disposable income.

Sally Asling, Lettings director of SurreyLets Ltd said

“These figures released from ARLA really do highlight the predicament that young people are facing regarding housing. In a recent blog I wrote about generation rent and the fact that people are just not going to get on the housing ladder until later in life.”

“This research clearly demonstrates the huge amount of rental being spent prior to purchasing which clearly puts a dent into what they need to be saving to raise a deposit for their home.

A person buying their first home in the South East  has spent an average of £57,000 on rent*

Its staggering to think that the average person in the South East will have spent an average of 57K renting before buying, even more staggering is this figure is closer to 90K if renting in London.

This is a massive amount of money when you think how much that could be worth if it were saved for a deposit on a home instead.

ARLA av spent on rent buying first home

 

*Assumes most people move out of their family home at the age of 18 and takes into account the average first time buyer age of 31.

 

The ARLA research, which is based on someone moving out of their family home at 18 and renting for 13 years, shows that in the north-east a typical tenant will have spent £31,300 on rent before they can buy, while in London the figure is £68,300. The figures, which were compiled with the Centre for Economics and Business Research, suggest that someone moving into rented accommodation in London today will spend an average of £91,500 on rent before buying their first home. A fifth of those renting now told ARLA they did not expect to ever be able to afford to buy a home.

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