Clacton Property Market - What is really happening?

I had an interesting conversation with a local Clacton on Sea accountant the other day. He is quite an observant chap (I know this because I have known him for a few years .. but I suppose you have to be to be an accountant!). Anyway, he mentioned a few things he had noticed recently in Clacton on Sea, one that Clacton on Sea property prices had gone up in the last few years but nowhere near the growth levels that were being achieved in central London, and secondly, that he thought the number of for sale boards in Clacton on Sea (and more importantly ones with sold slips on them)  had increased over the last couple of years.

The rate of house price inflation in Clacton on Sea continues to slow with growth of 9.6%  in the 12 months to February compared to 9.8%  just under six months ago, according to the latest Land Registry data. However, there is considerable local variation with house price growth ranging from 7.8%  in Suffolk to 14%  in Hertfordshire over the last 12 months.

Whilst Clacton on Sea hasn't seen the 20%+ per year in house price growth of London over the last couple of years,  Clacton on Sea has seen  a sharp uplift in the number of properties sold throughout  2014 as base line demand for housing grows, which suggests there is substance to the recent pick-up in house price growth in the town. Since the Second World War in the UK, when the number of properties sold has grown, property values grew soon after. The 18.43% uplift in property transactions in Clacton on Sea in 2014, compared to 2013, indicates the most significant recovery in house market activity in Clacton on Sea (outside London) since 2007.

When you compare Clacton on Sea with London, you could be looking at two different countries. In London, its mid/late teens house price to earnings ratios are impacting demand (ie the average property value is often 15 or 17 times the average wage in London .. in fact in Knightsbridge the ratio can be 30 to 1).  However, the number of people wanting to sell has dropped considerably, meaning that falling sales volumes combined with a general slowdown in activity in the run up to the General Election are resulting in lower mortgage approvals for home purchase.

Transactions are a great indicator for house prices. The acceleration in house price growth in London in the last two years was preceded by three years of rising transactions. A similar pattern is being registered in the Clacton on Sea area, as pent up demand returns to the market supported by low mortgage rates and an improving economic outlook.

But before you get the Champagne out, while the uplift in activity is welcome news, the number of Clacton on Sea property sales in 2014 are still 20.7%  lower than the level seen in 2007 and property values are 3.1% above  the 2007 levels. The ongoing housing recovery is far from broad based and remains focused on middle to higher value areas within Clacton on Sea where households have equity and find it easier to access mortgage finance. 

If you want to know more about the Clacton on Sea Property Market, please visit the Clacton on Sea Property Blog www.clactonproperty.blogspot.co.uk or send me an email to craigdavis@moreestateagents.co.uk

East Clacton apartment with 7.5% return!

Located on Holland Road, within close proximity to Holland Park Primary School, is this two bedroom first floor apartment being offered for sale at £99,995 with Sheens. 

This apartment is located in a the popular area of East Clacton and offers a garage, gas central heating and use of communal gardens. 

In my opinion, this apartment could benefit from a lick of paint and new carpets, but with this in mind, similar properties have achieved a monthly rental of £600, therefore if you are able to pick this apartment up for £95,000 offers an attractive 7.5% return (before any ground rent & services charges are taken into consideration)

 For further information about this apartment, click the link below and if you wish to discuss any potential buy to let investment, pop into the office or email me on craigdavis@moreestateagents.co.uk

4 Bed on Ruaton Gardens

Morning all! Final post of the week.

I spotted this four bedroom detached house listed with Blake and Thickbroom, located in Marigold Avenue on the Ruaton Gardens Development in Clacton for £164,995 and with a potentially monthly rental income of £895 - £925 PCM, even based on purchasing at full asking price at the lower end of rental income, still could offer a steady 6.5% return!

Ruaton Gardens is a small development located just off Cloes Lane and is within close proximity to the parade of shops at Bockings Elm. 

From the pictures it seems that this house has benefited from a complete repaint throughout and installation of a white bathroom suite to consist of 'P' shaped bath with shower over, which in my experience is a wise move, catering for both shower and bath enthusiasts! 

With four primary schools located within 0.5 miles of the property and also within 0.3 miles of Clacton Coastal Academy is a prime position with families.

For further information click the link below or pop into the office to discuss this or any other property.

http://www.rightmove.co.uk/property-for-sale/property-32105463.html

West Avenue Clacton apartment returning 8.4%!

I spotted this two bedroom apartment this morning for £78,000 located in West Avenue, and with a potential rental income of £550 PCM, offers a fantastic return of 8.4%! (Before any service charges are taken into consideration).

Ideally positioned on the Junction to West Avenue & Old Road, this apartment is within close reach of Waterglade retail park, with large chain shops to include Morrisons, Icelands, & B&M and only 0.2 miles to Clacton Town Centre. 

For more pictures and information, click the link below!

http://www.rightmove.co.uk/property-for-sale/property-51840164.html

Two Speed Clacton on Sea Property Market?

Even with the General Election on the horizon, property values in Clacton on Sea are still 1.08% higher than they were 3 months ago, the diversion and ambiguity of an election typically makes house sellers who need to sell, price their property more realistically (although this only lasts a couple of months). Looking specifically at it from a Clacton on Sea landlord’s point of view, the Clacton on Sea properties favoured by investors are in short supply in many parts of the town because of a number of factors. One of the factors has been that we seen the number of first time buyers coming to buy their first home increase over the last 12 months in Clacton on Sea.  Another factor has been the fact that the banks have been pushing ‘let to buy’ (yes ‘let to buy’ is different to ’buy to let’) to homeowners (more of ‘let to buy’ in an up and coming article). Next, because of the banks, who are chasing low risk landlords with high deposits with very low mortgage rates- and the low risk landlords with high deposits tend to be attracted to the safer modern two and three bed town houses and semis in Clacton on Sea.

As I mentioned a few weeks back, the pension rules are changing which means buy to let landlords can use some, or all, of their pension pot to buy a property.  It shouldn't be forgotten there are tax implications taking more than a quarter of your pension pot out (see the article from a couple of weeks ago), so whilst many pension pots may not be able fund a suitably big enough tax free lump sum to buy the property outright, for most it will provide enough for the 25% deposit (required by most BTL mortgage providers). It shouldn't be forgotten landlords that the interest paid on the mortgage is tax deductible against the rent, thus lowering your income tax paid.

In the last 12 months, I have noticed a particular uplift in interest from ‘50 something’ Clacton on Sea people wanting to become landlords for the first time. In Clacton on Sea, the highest returns for the lowest investment are at the lower end of the market eg the classic apartment. Unfortunately apartments with one bedrooms are coming to the market in smaller numbers than the larger four bed’s in top end sectors of the Clacton on Sea property market. When looking at the actual numbers, in the later part of the Summer of 2014 in Clacton on Sea, in one month alone 132 one bed properties were on the market in Clacton on Sea. However, in January this year, a notoriously excellent bumper month for properties coming on to the market, there were only 113 one bed properties on the market in Clacton on Sea to choose from. Today, that figure stands at only 103...whilst the number of four and five beds has increased significantly ...  interesting don’t you think?

At that lower end of the property market in Clacton on Sea, (i.e. where first time buyers and landlord investors compete with each other to buy those smaller properties), I believe throughout 2015, there will be a slow and steady tipping of the scales between supply and demand. In fact, from what I am seeing and hearing, early anecdotal evidence has suggested over the last few months (although we will need to look at figures later in the Spring once we have the data from The Land Registry), we are beginning to see a polarised Clacton on Sea property market, where we have high demand but low supply at the bottom end of the property market, yet high supply but lower demand at the top of market .. and that can only mean one thing ... prices will go up quicker on the smaller properties than the larger ones in Clacton on Sea, thus narrowing the gap for people looking to move up market!

Great Clacton Gem

This three bedroom mid terraced house has just been marketed with Sheens for £135,000 located in the popular area of Great Clacton.

Situated on Newington Gardens on the popular 'Foots Farm Development', this home is ideally located for Clacton Factory Outlet and access to A133, but only 2.3 miles to Clacton town centre (Source Googlemaps). 

A popular location for families, this home could expect to achieve a rental of £750 PCM, offering a return of 6.6%!

Click the link below for more information!

http://www.rightmove.co.uk/property-for-sale/property-34312224.html

7.8% Return on Wash Lane, Clacton

I've recently notice this two bedroom apartment has been listed with Haarts, and is priced at Guide Price £95,000 - £100,000.

This apartment offers two bedrooms, two bathrooms, off road parking and even a roof terrace, perfect for those Summer evenings!

Due to the location of this apartment, along with the features on offer, could expect to achieve a rental in the region of £625 PCM, therefore offering a whopping 7.8% return, before taking into consideration any ground rent or service charges.

For further information about this property, link the link below and if you wish to discuss this or any other potential buy to let property, pop into the office or email me on craigdavis@moreestateagents.co.uk

http://www.rightmove.co.uk/property-for-sale/property-48051793.html

6.5% Return on Warwick Road Clacton

Fancy receiving a return of 6.5% on your investment? Then look no further!

This two bedroom house in Warwick Road has just been listed with Blake and Thickbroom for £115,000, and with similar properties renting for £625 PCM could offer an attractive 6.5% return!

From the agents pictures the property looks like little work is required, therefore would potentially keep any void period to a minimum.

Warwick Road is conveniently located for local primary & secondary schools, and is within close reach of the parade of shops along Old Road to include the supermarkets of Aldi & Lidl. 

For further information click the clink below!

http://www.rightmove.co.uk/property-for-sale/property-33544890.html

6.2% Yield return on the 'Foots Farm' Development, Clacton

This three bedroom semi detached house has recently been listed with Connells, located on the popular 'Foots Farm' Development, located in the sought after area of Great Clacton.

A prime position for local shops, amenities, access to A133 and is located on the outskirts of Clacton but still within easy reach of Town Centre and Seafront. 

Properties in this area have always let well and a property of this size and location would achieve a rental in the region of £750 - £775 PCM, exclusive of all utilities, therefore offering a 6.2% return on your investment.

For further information click the link below, or if you require further information or wish to discuss any other rental investments email me on craigdavis@moreestateagents.co.uk or pop into the office for a chat and a coffee!

http://www.rightmove.co.uk/property-for-sale/property-49088206.html

Rents Paid By Tenants in Clacton On The Rise

With Easter just gone and considering we are a quarter of the way through 2015, I was talking to landlord from Little Clacton the other day about what is happening to the level of rents that are being achieved in the Clacton property market.

In terms of rents in Clacton, it appears that rents being achieved for new rentals (ie when the tenant moves out and new tenant moves in) have risen in the order of 3.8% in the last 12 months on top of the range modern properties, yet remained static for older Victorian terraced houses and converted apartments. However, landlords with existing sitting tenants, irrespective of age are not increasing their rents, as most landlords prefer to keep their existing tenant paying the same rent and have the peace of mind that their tenant remains, paying the rent (thus reducing the risk of a void period).

It must be remembered rents dropped by 2% over 2008/9, due to oversupply in the rental market in 2009.) A lot of the people who couldn't sell their property in Clacton in 2008/9 when the Credit Crunch hit in 2008, decided to let their house out instead of selling at a loss. In fact, the number of houses on the market in Clacton dropped by 58.5% between November 2007 and April 2010, a lot of which came on to the rental market in Clacton. However, looking at the longer term though, tenants have had it good  because since the turn of the Millennium, average wages have grown by 46%, but rents outside London have only grown by 36% rental growth over this period.

The fact a number of landlords are looking to sell their rental properties in the coming months, as the property market in Clacton has improved. This further compounded as tenants in existing rental properties appear to be staying in properties for longer periods of time. Looking at the rents charged in Clacton, historic evidence in the UK suggests private market rents have moved in line with general inflation. Government figures only go back as far as the year 2000, but looking at other countries with similar housing markets (America, Australia, Ireland and Holland) the fact is rents paid by tenants tend to rise in line or just ahead of inflation.

As short term wage growth in Clacton has eased off recently, rising by only 1.3% in the last 12 months, taking average salaries in Clacton to £23,784 pa, with the tax breaks announced by The Chancellor in the Budget, I believe, even though rents have kept pace with inflation in the past, renting as an option has become more affordable, and is increasingly seen as a lifestyle choice. With returning economic growth and expected increases in the rate of growth of wages, above inflation rental growth could rise.

If you want a chat about the local Clacton property market, pop in for a coffee or email me on craigdavis@moreestateagents.co.uk 

Two Bedroom Garden Maisonette located in Melton Close, Clacton.

This two bedroom maisonette with a garden has recently come to the market with Omega, and I feel this property would make a brilliant buy to let investment!

Two bedroom flats or maisonettes with gardens are few and far between, however are frequently requested and would be well suited for a small family or couple. 

A property of this size and location would command a rental return of £550 - £575 PCM, therefore offering an attractive 7.6% return, before any leasehold or ground rent charges are taken into consideration.

For further information about this property, please click the link below!

http://www.rightmove.co.uk/property-for-sale/property-51630395.html 

6% return in Ryde Avenue, Great Clacton!

This three bedroom semi-detached house is situated in the ever popular location of Great Clacton, close to local amenities and schooling and is on the market for £149,995.

Internally the property offers good size accommodation to include a 26' lounge/diner, two double bedrooms and a further single, garage in block and an approximate 40' rear garden.

This lovely family home would achieve a rental of around £750 PCM, therefore giving you a great return of 6%! 

Click the link below for further information.

http://www.moreestateagents.co.uk/properties/3481415/property#ad-image-0

Two bedroom maisonette, Clacton

This two bedroom maisonette has recently come on to the market with Haart for offers in excess of £95,000.

It is located in Branston Road, Clacton close to amenities and bus routes and it also benefits from its own private garden.

Properties of this style would achieve a rental of £575 PCM offering an attractive 7.2% return!

Click the link below for more information.

http://www.rightmove.co.uk/property-for-sale/property-49303090.html

Two bedroom ground floor apartment, Harold Road, Clacton

This two bedroom ground floor apartment located in Harold Road, Clacton has just come onto the market with John V Story for £127,995.

It is situated in a small block of flats close to the seafront and station.

Properties like this good size apartment would achieve a rental in the region of £650 PCM offering a return of 6%.

Click the link below for more information.

http://www.rightmove.co.uk/property-for-sale/property-34180944.html

Three Bedroom House in St Martins Close, Clacton

This three bedroom house has recently come to market with Sheens for £149,995 located in St Martins Close.

Its a Cul-De-Sac location of similar size properties and is located within easy reach of local schools. 

Properties of this size and location rent well and achieve a rental in the region of £750 - £775 PCM, therefore offering an attractive return of 6%. 

Click the link below for more information.

http://www.rightmove.co.uk/property-for-sale/property-34166325.html

Apathy in the Clacton Property Market

Apathy has hit the Clacton housing market as sellers await the outcome of the general election and stricter mortgage regulation suppresses buyer demand. This is mirrored around the UK as 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 Clacton, in the late Spring of 2014, each estate agent in Clacton had on average 63.3 properties on its books (as there were a total of 1,203 properties up for sale in Clacton at the peak in the late Spring gone). Our research shows that number plummeted to 46.1 per agent in December. While the lack of new properties coming onto the market in the later months of 2014 in Clacton pushed asking prices up slightly from November to December, traditionally a quiet season for the housing market, property sellers will need to work hard in 2015 to complete a sale.

The length of time a property takes to sell has increased over the last few months. Two bedroom properties in Clacton are now taking 111 days to sell, three bedroom 138 days, four bedrooms 167 days, but here an interesting figure, one beds are taking on average 70 days to find a buyer.

2015 will be the year of the selective mover. With only 806 brand new properties a year being built in Clacton since the turn of the Millennium, 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.

I would confirm the heat has gone out of the Clacton property market and I anticipate a moderate reduction from the high transactions volumes seen in 2014. That might mean Clacton 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 craigdavis@moreestateagents.co.uk