Clarke & Clarke Property Finders Ltd

STRONG OUTLOOK IN RENTAL SECTOR
It's expected that there will be strong growth over the next 5 years, with increases reaching 2.5% next year. The uncertainty of Brexit is likely to have an effect on the rental market, however, it still remains the preferred option for younger households.

10 TOP TIPS FOR SUCCESSFUL LETTING

Ensure you have agents who have good exposure to the market through on-line marketing and their own extensive database.
Be flexible on the rental price. It's better to adjust the price rather than have long void periods.
Make sure the property is well presented; consider dressing the property for maximum effect.
Find the right tenants by carrying out vigorous vetting procedures and credit checks.
Be sure to process the paperwork quickly so that the tenant doesn't walk away.
Be sure to have the necessary reports and certificates for letting and make sure the property is fully compliant.
Ensure your inventory is comprehensive and up to date.
If you're considering using a managing agent, choose the right one.
Will they collect the rent and track your rent payments and cash flow?
Will they provide regular checks on the property to ensure that small problems don't turn into large ones?
Do they use competent and trusted contractors and will they deal promptly with repairs?
For further information on property finding, letting and management, please contact us at [email protected].

JUNE 2016 - LONDON NO LONGER FIRST

‘London property is seen as a safe haven and over the last decade the prime market has seen growth of up to 150%, outperforming the stock market’…

London frequently grabs all the headlines, when it comes to house price rises, but double digit house price growth, has been seen in other areas such as Cambridge, where house prices, are growing faster than London. The average house price in Cambridge, is now £411,900 and house price inflation is at 15.8%, compared to London’s, at 14.4%.

Cambridge has boomed due to the University - backed science parks around the City, which have attracted highly qualified and well paid personnel. Bristol has also seen high price growth, currently standing just behind London - this has been attributed, in large part, to landlords buying up stock prior to April’s stamp duty hike. These two are not alone and towns like St Albans, have also experienced sharp rises in house prices, due to their proximity to London, fast transport links (London in half an hour) and their range of good schools and housing stock.

MAY 2016 - PRIME VERSUS NON-PRIME

In London, the average property price, passed £600,000, for the first time, according to the Land Registry, with prices growing 14% year on year, in the first quarter of 2016. However, the market was heavily distorted in the first quarter, by investors, rushing to buy houses and flats before April’s stamp duty rise.

In areas outside London’s prime central market, demand has stayed strong and with limited supply, prices have not dropped off as predicted. The majority of activity has taken place at cheaper levels and there is evidence of overseas investors switching into these areas.

Any lull in the market could create opportunities, especially if interest rates remain low. It could be a chance for both domestic and international investors to take advantage of these conditions to buy into prime London, or acquire new-build property which has been struggling of late.

LIFE AFTER BREXIT

As we all come to terms with the momentous events of last week and listen to all the rhetoric flying between the UK and Europe and the subsequent inter-party fighting, it is difficult to get a real perspective of what the future holds.
However, once the dust has settled and the political parties have sorted out their problems and elected new leadership, it will be time to work out our future relationship with Europe and the rest of the world – it’s a fresh start, with a set of new circumstances and Britain needs to seize the moment.
In the short term, we believe there will be significant opportunity in the UK property market, in particular, in London. During the course of the last eighteen months, the prime market has come under mounting pressure with a series of tax hikes, further compounded by the uncertainty and conjecture running up to the Referendum.
By the Autumn, the Conservative party will have chosen a new leader and cabinet, which will be more united and positive in its outlook and desire to secure the best terms for the UK, both in Europe and globally. There could well be a new budget to stimulate growth, including the possibility of cuts in CGT and Income tax and maybe even reviewing the high rates of SDLT, all of which could boost the property market.
The Bank of England has already signalled its intention to step in to calm volatility in the financial markets through quantitive easing and interest rate cuts. Interest rates look set to remain low for the foreseeable future, which will help to underpin the property market.
The pound has come under pressure, particularly from the $US, but this makes UK residential property cheaper for international investors, who have been waiting on the sidelines. It may have a similar effect to the last financial crisis, when the pound slumped and foreign money poured in. With prime London property also trading at lower levels, there could be some buy opportunities. It is therefore essential that you receive expert advice and reassurance before committing to any purchase.