Baldock homeowners and potential Bank of England base rate rise…..

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An interesting article…….  Are Baldock homeowners ready for an interest rate rise?

For more information about the Baldock property market and where it is going – please read my other blog posts on http://www.baldockpropertyblog.co.uk  or drop me note via email lettings@satchells.co.uk, like many Baldock landlords are doing.

Alternatively pop in to our office for a cuppa or give me a call on 01462 894565.

 

 

 

Baldock first time buyers borrow £11.3m in the last 12 months

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Starting with the bigger picture, over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56bn, so it can be seen the number of people moving house has dropped by over a third over the last decade.

Whether you are a landlord, homeowner or tenant, it’s always important to keep an eye on the Baldock property market, not just from your point of view, but also from every player’s point of view. Over the last 12 months, 235 properties have sold (and completed) in Baldock, worth £81.3m.  Interestingly the number of properties changing hands in Baldock has also dropped when compared to a decade ago.

It might surprise you that first time buyers in 2017 will benefit from a slight decline in Baldock buy-to-let investors.

Those looking to buy a home in the spring and summer of 2017 will face a far less competitive Baldock property market than the same time of year in 2016, when the urgency to beat the buy-to-let stamp duty hike was in full swing.

Many landlords brought forward their purchases to beat the tax, and since then, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures, this is what UK lenders have lent on buy-to-let properties versus first time buyers over the last 12 months  …

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Q4 2015 – £1bn buy-to-let mortgages vs £1.31bn for first time buyers

Q1 2016 – £1.35bn buy-to-let mortgages vs £1.08bn for first time buyers

Q2 2016 – £760m buy-to-let mortgages vs £1.28bn for first time buyers

Q3 2016 – £827m buy-to-let mortgages vs £1.42bn for first time buyers

When looking at the figures for Baldock itself, first time buyers have borrowed more than £11.3m in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Baldock economy. Those 20 and 30 something’s who are considering being first time buyers in 2017 will find that the number of properties on the market has never been as good as it has for quite a while, meaning you have more choice of properties and less competition from so many buy-to-let landlords than a year ago.

Rightmove announced nationally that new seller enquiries are 26% up on the same time last year giving the stoutest indication that we may see a slight ease in the lack of properties on the market. When I look at Baldock, at this moment in time there are 63 properties for sale, compared to 42 properties a year ago. All this will be welcome news amongst Baldock first-time buyers with a combination of a proportional reduction in new investors and landlords.

2017 will be an interesting year for all homeowners, be they buy-to-let landlords, existing homeowners or future homeowners.  For more thoughts on the Baldock property market like this, you might want to visit the Baldock Property Market Property Blog:

www.baldockpropertyblog.co.uk

It’s official – letting agents save landlords an average of £1,910 per year!

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Good afternoon. There’s a lot of focus on the Lettings industry at the moment and the article below, I thought was quite an interesting read:

A new survey suggests that a letting agent saves a landlord an estimated £1,910 a year.

The result of an investigation into 500 landlords by insurance firm Endsleigh suggests that there are widespread misconceptions among landlords about the value for money offered by letting agents.

Of those landlords suggesting that they could save money by not using agents, the average sum ‘saved’ on fees was £159 per month.

However, comparative analysis of the rental income and void periods for those landlords with, and those without, agents suggested that in fact agents saved their clients an average of almost £2,000 each.

Most of the savings for landlords are created by agents minimising void periods when compared to landlords who go it alone marketing their property.

Some 76 per cent of respondents to the survey reported that their agent helped them pro-actively find tenants, as well as providing other services such as help with legal and financial matters and so contributing to a reduction in overall costs.

The survey suggests that relationships between letting agents and landlords are not about financial benefits alone.

Of those landlords who use an agent, 50 per cent were most attracted because of their local knowledge, and more than two in five claim that excellent service is a deciding factor.

Some 41 per cent feel the main benefit of working with an agent is that it provides peace of mind, and 25 per cent say they communicate with their letting agent on a weekly basis.