Landlords invest £1.587bn in the Solihull Property market

West Midlands property asking prices jumped by more than £1,300 to £190,700 in February according to Rightmove, an increase of 0.7% from January and 4.1% higher than a year ago. After the traditionally quiet months of January and February, the property market has started to warm up, but talking to some Solihull Estate Agents, they are reporting their lowest ever stocks of quality property for sale. However, as asking prices have no relation to what property sells for (ie their REAL value), is the issue a lack of supply?

Putting aside Solihull’s continual housing supply shortage, (we only built 5,126 properties in the last decade but the population of Solihull grew by 7,157), this is now, according to some people, being exaggerated by an increase in homes being owned by buy to let investors, who tend to be buying a property as part of a long term pension plan and are more likely to keep it for longer than an owner occupier would. I have also seen unwillingness among homeowners looking to move, to put their own property on the market as they can find few suitable properties to make it worth their while going through the whole moving process.

When one looks at the historic data, in April 2008 there were 1,242properties on the market in Solihull compared to today’s 366. Should we be worried?  Well in December 2009 there were only 478 properties for sale in Solihull but ten months later in October 2010, this had jumped to 826 properties, for it to drop to 363 properties in February 2014. The number of properties on the market is a cyclical thing in Solihull, it always has been and always will be. As we go into the Spring of 2015, the number of new properties coming onto the market will increase ... just as the daffodils will flower.

So are landlords to blame? Well, on one side of the coin, yes they are. If they buy a property to rent out, that means someone can’t buy it to live in. However, it doesn’t matter if someone wants to live in a property if they can’t afford the deposit and upkeep .. and the youngsters of Solihull still need a roof over their head. So on the other side of the coin, if the Council aren’t building any properties and people can’t afford the large deposit for the mortgage, then Solihull landlords have stepped in and bought property to rent out to them (spending approximately £1.5bn in the process), meaning there were at the last count, 7,795 Solihull properties being privately rented out to tenants. Solihull tenants are in fact getting a good deal as well, as average rents in Solihull are 5.8% above where they were seven years ago. That sounds like a win-win situation for everyone to me. Stop blaming landlords and start building more properties in Solihull .. that is the only answer.

In the meantime, the demand from Solihull tenants for Solihull property is only set to rise over the coming years. If you want some advice and opinion on where (or not) to buy, please contact me on jane.morcom@centrickproperty.co.uk

A great potential investment maisonette in Solihull

More great news for the Solihull property market. The two bedroom maisonette, which was a fantastic investment opportunity has now sold.  I would keep your eyes peeled as I have a feeling more buy to let properties will be popping up on the market. 

Another fantastic investment opportunity in Shirley, Solihull.

A great little investment opportunity with this two bedroom apartment in Shirley, Solihull. Take a look at the property for yourself here: http://www.zoopla.co.uk/for-sale/details/35910310

A refurbished two bedroom apartment located in a convenient location. The property consists of a spacious lounge/ dining area, refitted kitchen, roadside parking and balcony area.  An apartment like this would be perfect for tenants looking to be close to local amenities, a sort distance from Solihull and also good access to transport links.

This property is currently on the market with Melvyn Danes with an asking price of £135,000. With a property of this standard, you are looking at a rental income of approximately £700pcm. With the rental income you would achieve a yield of 6.2%, a healthy yield for investors.

 If you would like to discuss buy to let properties or investment opportunities further, please contact me jane.morcom@centrickproperty.co.uk

The perfect investment in Dickens Heath.

Dickens Heath is a great area for investment. A sort after area, with great local amenities and a fantastic village vibe. A perfect investment property now sold. Great news for the property market in the Solihull area as we are starting see more rental properties pop up. 

Look at this one bedroom apartment for sale in Solihull!

I have noticed this one bedroom apartment pop up on the market this morning, another great buy to let opportunity.  Take a look at the property here:  http://www.zoopla.co.uk/for-sale/details/33007457

A ground floor apartment, conveniently located in Solihull. The property consists of a double bedroom, re- fitted kitchen, shower room, allocated parking and a garage. An apartment that would be ideal for tenants looking for a great quality of living in a great location.

A property of this size and standard would achieve approximately £500pcm, this would not include any additional charges for ground round or services charges. With the approximate rental income per month you would be looking at a yield of 5.5%.

A great investment opportunity, with no chain. This a must see property!

If you would like to discuss investment opportunity or would like advise on buy to let properties please contact me on jane.morcom@centrickproperty.co.uk

Do cheaper properties make better investments in Solihull?

Prices up, prices down, prices stable.. the newspapers are full of good news, bad news and indifferent news about the Brit’s favourite subject after the weather .. the property market. The thing is the UK does not have is a single housing market. Instead, it is a patchwork of mini property markets all performing in a different way.  At one end of scale is London, which has seen average prices grow in the last twelve months by a shade under 19% -whilst Wales only saw a 2% increase in property values (although in the Merthyr Valleys they dropped by over 11%).

While the Bank of England warned of the growing London property price bubble in the Spring of 2014, even talk of a recovery in some areas was premature. In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets –  really slow property value growth.

But what about Solihull? Well, we haven’t had the February figures from the Land Registry yet but the last few months’ activity and prices achieved would suggest neither house price growth nor drops (since most sellers are buyers anyway, if you need to take less for yours, in theory you won’t have to pay as much for the one you want to buy). This is even better for landlord investors, as they often have more bargaining power and can purchase with no mortgage.

Perhaps a question we could be asking then; is not only is what happening to property prices, but which price band exactly is selling? I like to keep an eye on the property market in Solihull on a daily basis because it enables me to give the best advice and opinion on what (or not ) to buy. 

If you look at Solihull and split the property market into four equalled sized (into terms of households) price bands. Each price band would have around 25% of the property in Solihull, from the lowest in value (the bottom 25% ) all the way through to the highest 25% (in terms of value).  Over the last two months, in the lowest quartile, (those with asking prices under £170k) 189 properties have come onto the market in Solihull and 33.8% of them (64 properties have a buyer and sold subject to contract. The next quartile, between £150k-£270k, of the 313 properties that came on to the market, 41.8% of them (131 properties) have a buyer. The £270k - £450k price range has seen 251 properties come on to the market, and 40.23% of the properties have a buyer (101properties). The most expensive 25%, the £450k plus range, has seen 64of the 208 properties that came on to the market find buyers (30.7%).   Pretty fascinating as most would not necessarily expect that higher priced properties would move so fast!

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any house price growth or drops this side of the election. And why? Because of Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash. ... there is always a silver lining when it comes to the property market! 

Two bedroom maisonette in Solihull with great potential.

Another great investment property to hit the Solihull market, take a look here: http://www.zoopla.co.uk/for-sale/details/36164236

This quaint little maisonette, will make for a great investment opportunity, yes a little TLC is needed to however, with the right investor the property would be ideal for tenants looking to live close to Solihull town centre. Consisting of two bedrooms, spacious living and kitchen area and family bathroom, this property screams out to investors.

The property is currently on the market with us, with an asking price of £115,000. The maisonette is in need of a little TLC however, the work done to the property would increase your rental income to around £650pcm. This would give you an impressive yield of 6.7%.

This is a must see, with early viewings highly recommended due to the popularity of the property.

Should you wish to discuss buy to let properties or would like advise on investing, please contact me at jane.morcom@centrickproperty.co.uk

A perfect investment property in Dickens Heath, Solihull

Another little investment gem has been brought to my attention this morning in Dickens Heath, Solihull. Take a look for yourself here: http://www.rightmove.co.uk/property-for-sale/property-32515158.html

Another fantastic buy to let opportunity which will be snapped up quickly by investors. The ground floor apartment has the potential to be a great rental property. With the large bedrooms, open plan kitchen, lounge and dining room and underground allocated parking, this property screams for attention for potential tenants. Located in Dickens Heath, with good local amenities, this apartment would be great for tenants looking to combine convenience with a quiet setting.

This property is currently on the market with Smart Homes with a current asking of £150,000. Currently in the Dickens Heath area you are looking at a rental income of £750pcm. Working on these figures this would generate you a yield of 6%, a great investment opportunity.  

If you would like to discuss buy to let properties further or investing please email me on jane.morcom@centrickproperty.co.uk

Are more people renting than buying since 2001?

An Englishman’s home is his castle; but when it comes to the UK, the ‘Brit’s are still a nation of homeowners. Although, I recently discovered that up until the mid to late 1960’s, more people rented their home (albeit mostly from the local council) than owned their own. In fact, I was surprised to read that in 1921, over 75% of homes in England and Wales were privately rented with the remaining 25% being owner occupied. 

It was only after the Second World War, when the Beatles were rocking, that people started to buy instead of rent .. but instead of owning our property outright, we borrowed money from banks and building society’s to buy them and the roots of the growth of the private rental sector can be drawn back to the late 1970’s early 1980’s, when the council houses began to be sold off under the right to buy scheme.

Even though 63,200 households in Solihull were owner occupied in 2001 and that number had increased to 63,559 households by 2011, the percentage of homeowner properties in Solihull dropped drastically from 78% to 73.8% Why, because whilst an additional 5,126 properties were built in Solihull between 2001 and 2011, a lot of them were bought as buy to let investments, thus more than doubling the number of private rental properties in Solihull. In fact, the number of properties in Solihull, that were privately rented jumped from 2,951 in 2001 to 7,795 in 2011!

With stagnation in the number of people who own their home in Solihull and no more council houses being built, this is increasing the number of people looking to renting, as everyone needs a roof over their head. With the Solihull Council housing waiting lists being in the 5 to 10 year range for a decent property in a decent location, it shouldn’t be forgotten that it is Solihull landlords who house tenants waiting for a council house.

Therefore, with every report stating the rental market will continue to grow throughout the rest of this decade, with high demand and limited supply in the Solihull, if you are considering buying a property for investment in the near future in Solihull, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. If you are a landlord, new or old, I am certainly more than happy for you to pick up the phone to me on 0121 705 3242 (Option 1) or email me at jane.morcom@centrickproperty.co.uk .

Semi detached property in Sheldon, Solihull. Perfect Buy to let property.

A great update for a Tuesday morning. This three bedroom semi detached property has now been sold. A property like this is fantastic for landlords to market to tenants looking for a family home, located close to Solihull. Another great investment property with a fantastic yield.

Another fantastic investment opportunity in Solihull now sold.

Just a quick update on this modern Solihull apartment. This is a perfect example of what potential tenants in the Solihull area are looking for from a rented property. With modern fixtures and fittings, fitted appliances, spacious living area and great location what is not to love about this property.

Time to grab a property bargain before the Election?

Rightmove reported the number of homes registered for sale per estate agent fell to its lowest level for five years in December, with available stock 10% lower than in the same month a year earlier. Looking at Solihull, in the Summer of 2014, each estate agent in Solihull had on average 7.6 properties on its books (as there were a total of 380 properties up for sale in Solihull at the peak in the Summer just gone). Our research shows that number plummeted to 4.7 per agent in December.

Similarly, the length of time a property takes to sell has modestly increased over the last few months. Most properties in Solihull are now taking - on average - around 70-80 days to sell, although interestingly, one bed properties are taking longer at around 160 days to find a buyer. It must be noted these are only averages and some properties are only taking a matter of a couple of weeks to sell .. it comes down to location, condition and price.

2015 will likely be the year of the selective mover.  With only 512 brand new properties a year being built in Solihull since the turn of the Millennium (I wish there were more!), this woefully low and insufficient number of new buildings in the town over the past few decades and a systemic change in the type of properties homeowners want (with families splitting etc so we have too many larger houses and not enough smaller ones), buyers are becoming dissatisfied with, and therefore dismissive of what is up for sale.

All this might mean Solihull landlords could bag a bargain during this period of uncertainty, especially if the financial markets do not like the election outcome. Markets and buyers do not like uncertainty, but savvy Buy to let landlords know buy to let is a long term game, and irrespective of short term apathy, reduction in the quality and quantity of stock for homeowners to buy  or the election, if people don’t buy property they rent.  The Council aren’t building anymore properties, the council house waiting list is decades, not years for the better type of property .. the only other place to get a roof over your head .. rent a property!  Good old Bricks and Mortar!

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. Email me on jane.morcom@centrickproperty.co.uk

Look at this semi detached property in Sheldon, Solihull!

It's a lovely sunny morning here in Solihull and I have come across a little gem of a property on the market. Take a look for yourselves:
http://www.zoopla.co.uk/for-sale/details/35769009#1gRHiohpZV3R5Dj7.97

This is another fantastic buy to let opportunity and will be snapped quickly by investors. The three bedroom, semi detached house has potential to be a great rental property. With a large garden, spacious bedrooms, family bathroom and through lounge this property would be perfect for tenants looking for a family home close to Solihull town centre and Birmingham Airport.

This property is currently on the market with Dixons Estate Agents with a current asking of £160,000. Currently in the Sheldon area you are looking at a rental income of £775 pcm. Working on these figures this would generate you a yield of 5.8%, a great investment opportunity.  

If you would like to discuss buy to let properties further or investing please email me on jane.morcom@centrickproperty.co.uk

Ideal investment property in Solihull

Another fantastic investment property has popped up on the market this week, ideal for investment. Take a look at the property at:  http://www.zoopla.co.uk/for-sale/details/36014500

A great location for an investment property, this modern apartment consists of secure intercom system, two double bedrooms,spacious family bathroom,allocated parking and lift access.

 This property would be a perfect opportunity for investors as it would attract tenants, who required to be located close tot he Solihull town centre and also located to excellent schools.

Currently the property is on the market with Right Estate Agents, you are looking at a rental average per month of £1,000. This would give you a rental yield of 5%, not including any service charges or ground rent that may be required to be paid. This is a great opportunity and I advise you to take a look at the property for yourself.

If you would like further information on investment properties please feel free to me on jane.morcom@centrickproperty.co.uk