As my regular readers know, my passion is talking about the
Bo’ness property market which I hope will be of interest to both homeowners and
buy to let landlords alike. However, this week, I want to highlight the plight
of the tenants of Bo’ness as more and more of their wages are being taken up by
ever increasing rents.
The cost of renting a home in Bo’ness has almost broken
through the £500 a month barrier as the average rent for a property in the Town
now stands at £494 per month which is around 4.6% higher than 12 months ago.
House price inflation has certainly eased in Bo’ness from
the heady days of 2014 but with consumer price inflation still being below 2% virtually
any increase in property values means that in real terms property is still
getting more expensive. Meanwhile, many tenants have given up saving for a
mortgage deposit as rents continue to take more and more of their wage packets
leaving nothing to save for a deposit. That means, more and more tenants are
deciding to rent for the long term and therefore the desire for decent high
quality rental properties continues to exceed the available rental stock.
I would go as far as to suggest that rents are an ideal
barometer to the state of the local economy as a whole and strongly believe
that the recent increase in Bo’ness rents are a sign that the Bo’ness economy
is picking up.
This means Bo’ness landlords are continuing to capitalise
on the Bo’ness property market. The most recent data from Zoopla suggests the
annual property price rises in the town have eased over 2016, leaving property
values 2.6% higher than 12 months ago – last year annual property price rises
were running at almost 4%. With property
price growth easing off, the increasing rents mean that rental yields are
strengthening for the first time in years to compensate. The mortgage market
has become more stable and so everything is set to be good news for landlords;
even with the Chancellors change of tax rules in the coming years for buy to
let mortgages.
You can get some amazingly low mortgage rate deals at the
moment, so with mortgage rates so low and returns still extraordinarily
attractive, there’s rarely been a better time to invest in rental properties.
However, (you knew there would be a however!), it’s all
about buying the right property at the right price. Not all property types are
seeing equal rises in rents and capital growth.
Different parts of the Town, different types of properties are
experiencing quite different changes.
For example, the average length of time Bo’ness one bed properties take
to rent is 21 days whereas it takes on average 35 and 45 days to rent 3 and 4
bed properties respectively.
When you start comparing different parts of Bo’ness, the
numbers are even stranger! The bottom
line is that you must take advice and opinion. One source of advice and opinion
is The Bo’ness Property Blog. In The Bo’ness Property Blog, you will see many
more articles like this, discussions and even what I consider to be the best
buy to let deals around, irrespective of which agent is selling it.
Whether you are a landlord, a ‘Homes Under the Hammer’
addict or just a homeowner who is interested in what is happening to the local
property market, then please visit The Bo’ness property Blog (www.thebonesspropertyblog.co.uk),
pop in for a chat (19 Main Street, Bo’ness) phone me (on
01506 828096) or email me (news@thekeyplace.co.uk).
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