After the shock of the Conservatives returning to power with
a majority at Westminster, all the potential issues and possible uncertainties
of a hung parliament has lifted the cloud from the Clacton property
market. Talking to other Clacton agents,
surveyors and solicitors in the area over the last few days, there are signs
this has started a new impetus in the Clacton property market after a subdued
six months, when an amalgamation of tougher lending conditions, a natural
correction after the strong recovery in Clacton property prices in 2014, and
political uncertainty ahead of the General Election slowed demand.
Against the back drop of Labour’s election promises of rent
controls and three year tenancies, some Clacton buy to let landlords were
waiting to see how these new policies would be implemented before they
committed themselves to buying more property for their buy to let portfolio.
Now that uncertainty has been removed, the long term picture is very positive.
So, with all that uncertainty now removed, where next for
the Clacton property market? Well with
inflation at zero and with the Money markets happy David Cameron is still at
No.10, the Bank of England have no reason to raise interest rates until 2016 at
the earliest. As mortgage rates are at their lowest levels since 2010,
landlords with large deposits will now be wooed by the mortgage companies in
the coming months with low rates.
You see over the past couple of years, Clacton landlords
have benefited from a booming Clacton job market. Unemployment in Clacton
has dropped to 4.8%,
as a year ago, 2,059 people were claiming unemployment benefit compared to
today’s 1,526. With more jobs and better pay, as the level of rents is directly
linked to tenant’s wages, there has been an increase in the rental prices
tenants are willing to pay for good quality Clacton properties.
Some landlords might be nervous about Tory’s plans for the
housing market over the next five years in terms of tenant demand for their
rental properties. One plan is for Housing Association tenants to have the
right to buy their property. These kind of tenants were never in the private
rented sector and will actually increase the supply of properties in the
housing stock in decades to come. The Government ‘Help to Buy Scheme’ has only
helped to buy 65 Clacton properties since April 2013. Considering 1,406 properties
have changed hands in the last year alone in Clacton, I don’t think it has made a
huge difference to our local property market.
The biggest matter, when it comes to tenant demand of rental
property going forward, comes from the shift in the mindset and attitudes
towards renting itself. Twenty years ago you were seen as a second class
citizen if you rented a property. In Clacton, as in the rest of the UK (apart
from Central London), renting continues to offer good value for money for
tenants. If you are an existing landlord
in Clacton or thinking of becoming one (or as we like to call you, a FTL. A
‘first time landlord’), then I must suggest you seek out specialist advice and
opinion. Like many agents in Clacton, we will happily give you our opinion on
the current state of the market and the advantages/disadvantages to investing
in the Clacton property market if you pop into our offices. However, if time is
at a premium, another source of information on the Clacton Property Market is
the Clacton Property Blog www.clactonproperty.blogspot.co.uk
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