Wells – Page 12 – Glastonbury Property News

I was looking through the latest Land Registry data and see that Glastonbury property values were 14.7% higher over the last 12 months than they were in the preceding 12 months. Compare this with 7% higher in Wells and 4% higher in Street for the same periods.

Overall, I expect future property price growth to remain firm, built on the foundations of an improving labour market, a strengthening economy, and low interest rates. This is good news for those investing in property in Glastonbury and the surrounding areas.

This is a view also held by the mortgage brokers and solicitors I talk to regularly (all of whom have their finger on the pulse of the Glastonbury property market). With an underlying lack of supply and the continued low interest rates, the slow but steady upward momentum of the Glastonbury property market is likely to continue for the rest of 2015 and in to 2016.

Lack of Supply

I have noticed for some time now that the number of houses on the market in Glastonbury is low.

One of the many reasons is the number of buy-to-let landlords who have bought property over the past fifteen years. Unlike first-time buyers who tend to move on after a few years, private landlords in Mid Somerset tend to keep their properties long-term, meaning there are less properties coming onto the market, and thus restricting supply and sales of properties for investment in Glastonbury.

In fact, over the period April-June, only 45 properties in Glastonbury have been purchased compared to 60 in the same time frame in 2014, a not-so-insignificant drop of 25%.

Interest Rates

Mark Carney (Chief of the Bank of England) said in a recent speech that the Bank will be considering raising interest rates around Christmas time of this year. An upward movement in interest rates will temper demand and result in a marked slowdown in house price growth. Mr Carney said that only six out of ten people had a mortgage (57% to be precise) had a variable rate mortgage, compared with more than seven out of ten people (73% to be precise) in the Summer of 2012.

I’m not a mortgage broker and cannot give financial advice, but rates are only going on one direction from here, so whether you are a landlord or owner-occupier in Glastonbury, this might be a time to consider fixing your mortgage rate. Certainly some of my clients have managed to pay off their mortgages at a faster rate while interest rates have been low.

If interest rates do rise, the affect on sentiment which, given the shortage of supply, would result in a marked slowdown in the rate of house price growth in various BA postcodes.

About Tom Morgan

Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk

A Glastonbury landlord rang me this morning unhappy that one of her tenants had just given her notice to terminate their tenancy and she is now looking for her 3rd tenant in 18 months. The landlord questioned if this was the norm.

At the last count there were 758 private rented properties in Glastonbury though I think with the recent growth in the local population and the rental market I would put this number today very close to 800.

Between June and August this year just 42 Glastonbury properties came to the rental market. My research and experience suggests the average Glastonbury tenancy currently lasts 4 years 8 months. Compare this to 3 years 9 months in Street, 3 years in Shepton and just 2 years 5 months in Wells.

Renting a property means that tenants have no long-term commitment. Whilst tenants will have a contract stating the number of months they are permitted to live in the property it’s still a lot easier to move elsewhere compared to what it would be if they were a freeholder for the property. With this flexibility for tenants comes the uncertainty for landlords who, beyond any term certain, can never be sure how long a tenant will stay.

Voids (times when the property is untenanted) impact a landlords overall rental yield. While they are a reality of the rented sector, there are simple steps that landlords can take to help reduce the chance of a property being untenanted for extended periods. These periods without occupancy can also give a landlord a useful window to carry out routine maintenance and any additional work to make a property more attractive to tenants.
Here are some tips for landlords:

1. Set realistic rents
While rental properties are in high demand in many parts of the UK, this is not a guarantee of back-to-back tenancies. As well as asking the advice of a letting agent, it is also worth doing your own research to find out if the level of rent you are charging is suitable for the area. Trying to squeeze the last penny of rent out of a tenant comes with a warning – if you charge a tenant top dollar rent they will expect top dollar service in terms of repairs etc. Also, given time the tenant will realise they may be able to get better value elsewhere. Remember that the overall cost of an extended void period can outweigh the perceived loss associated with setting a sensible rent, which may also make the property quicker to let.

2. Foster good relations with your tenant
You have a greater chance of establishing a good relationship with your tenant, and your tenant may be more likely to stay in the property longer if you:

Respect the tenant’s right to quiet enjoyment of the property and except in cases of emergency always give the tenant a minimum 24 hours notice in writing of visits to the property

Carry out periodic inspections of the property to identify defects or opportunities to improve the property

Address tenant repair requests promptly

3. Make the property desirable
Ensuring the property is in good order could help make it more desirable, meaning it will be easier to let and may even mean tenants want to stay longer. While tenants have a duty to look after internal fixtures, landlords are generally responsible for the repairs, unless the damage is caused by the tenant, as well as the structure of the building, the exterior and the roof. In addition to this, a landlord must ensure heating and hot water installations, sinks, baths and other sanitary fixtures are maintained to a reasonable standard. Further decorating and furnishing the property appropriately, and to a good standard, may help it stand out for potential tenants.

4. See a ‘void’ as an opportunity
While it is important for landlords to keep up to date with necessary repairs, a void period could provide a good time for non-essential, intrusive maintenance and improvement works to be carried out, with no disruption to tenants. This could, in turn, make the property more attractive for potential tenants.

5. Hire a letting agent
A good letting agent can help guide you through the day-to-day complexities of being a landlord and also share the work in finding tenants, meaning you will have less work to do when a tenancy comes to an end.

Category: Wells Page 12 of 15

Glastonbury property values growing twice as fast as Wells property values

About Tom Morgan

Glastonbury tenants stay almost twice as long as Wells tenants

About Tom Morgan

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