Whats happening with us & where would you purchase a Buy to Let?
Hello Readers, another long period of quietness, all good thing for us here at IPS as we draw to the end of the year. Please see below some updates on our activity, some info on a new property buying venture of ours in the midlands, and lastly a report on the UK property Market.
In our news since our last post our beautiful Puttenham property has been Let, but not before a lovely little contemporary cosmetic refurb. Portland Road has been sold, and we are completing a lovely refurb in Chelsea next week, pictures coming shorty.
As I write I am currently on a train to London from Newcastle. We have decided to look into the already established Buy to Let markets further north and the current house price divide between the North and South that is predicted to narrow. Articles from BBC & Savils predict that British property prices will rise in line with the expected personal incomes rises from 2019 to 2024. Savils predict the grow will range from 21.6% in the North West to 4.5% in London, and Scotland nearly 20% over the same period.
In regards to the North East West trains direct from London’s Kings Cross to Edinburgh (5hrs) via Durham (3hrs) the appeal to fly the nest and make more from your primary investment is quite strong, or in the case of so many a safer place to invest in a Buy to Let property, though I am sure to the dismay of the locals that could end up being priced out of their own market, much like overseas buyers have done in London. Note however to date these areas have been recovering more slowly from the financial crisis then London, and it was only a year ago we were expecting another property crash, which perhaps we have managed to weather by homeowners choosing to stay put and not sell, therefore less available to buy on the market, and the rental market remaining less effected.
Our research shows rentals yields at an average of about 5-7% in the North East with undervalued gems being snapped up by the savvy with yields as high as nearly 14%. While this may be only grossing you up to £1,500- £3,000 proft a year on a £35,000 property the potential increase in Market Value of up to 20% over the next 5 years is attractive and could release enough capital for a deposit with your mortgage lender to snap up another property, and grow your portfolio.
As is always the case with property whether spending £30,000 in the North East & West, £265,000 in Shefield, or skies the limit with London caution is always key, not limited to Brexit there are many deciding factors within the UK Economy that will effect our housing market over the next 5 years. But could snapping something up before March 29th 2019 be to risky ?
There were fears of a fall in properties prices without a Brexit deal being reached so it’s a positive day to see some proper steps coming from the Cabinet meeting of Wed 14th Nov 2018 in that there is finally a Draft Brexit Agreement to be presented to the House of Commons today (Thurs 15th Nov) and then to a special summit of EU leaders.
"This deal, which delivers on the vote of the referendum, which brings back control of our money, laws and borders, ends free movement, protects jobs, security and our Union; or leave with no deal, or no Brexit at all." Teresa May.
Not that the Pound can be anything to go by, it has been interesting to see the volatility over Wednesday and Thursday of this week alone, where it picked up due to strides being made in her securing Cabinet Backing for the Draft Brexit Agreement, to today Thursday 15th Nov where it fell more then 1% to the Dollar and Euro after the resignation of Dominic Raab (Sectary of State for Exiting the EU) and Esther McVey (Sectary of State for Work & Pensions).
In other news Small business’ make up almost a 3rd of our economy and are having their voices heard and recognised. Some UK business welcome the deal in that it’s a non ‘cliff edge deal’ indicating that simply a laid out plan no matter how bad in some circumstanced creates a solid foundation to build on. ‘
Ref: BBC's article North-South house price divide 'to narrow'