Key Road - 2 Bedroom Terraced House

Sheens Estate Agents have listed this two bedroom mid terraced house located within close proximity to Clacton town centre for £127,500.

The property internally offers lounge, kitchen/diner, two bedrooms and shower room. 

Properties in this area achieve a rental in the region of £625 - £650 PCM, therefore offers 6.1% return!

For further information and pictures, click the following link.

http://www.rightmove.co.uk/property-for-sale/property-57349700.html

Berkeley Road - Three Bedroom Semi Detached House

This three bedroom semi detached house has come to market with Omega Estate Agents for £159,995 located within one mile of Clacton's town centre and mainline station in Berkeley Road.

The property itself offers three bedrooms, two reception rooms, rear garden and off street parking.

Properties in this area and size achieve a rental of £775 - £800 PCM. Based on full asking price this property could return 6%!

Click here for more information.

http://www.rightmove.co.uk/property-for-sale/property-54366173.html

The Clacton Property Market and £1,300,000,000,000,000,000 in loose change

The 5^th of March 2009 was the date Mervyn King, the then Bank of England Governor, slashed UK interest rates to the unparalleled figure of 0.5%. In just under five months, starting on 8^th October 2008, the rate had come down from 4.5% to that low figure, all in an attempt to ensure the British economy survived the worldwide credit crunch. Now as we deck the halls with bows of holly nobody expected that, over six years later, rates would still be at that low level.

In the summer, people were predicting a rise in the New Year, yet now, some forecast it may remain the same for years to come the due to the issues in China. Now, I am not some City Whiz kid with a hotline to Mr Carney at Threadneedle Street, but merely a humble letting agent from Clacton, so I can not profess to know what will happen to interest rates. However, what I do know, speaking to my Clacton friends and Clacton landlords is that these low interest rates have hit savers really hard.

If you added up everyone’s bank and building society savings in the UK, they would add up to £1,300,000,000,000,000,000 (that’s £1.3 trillion), most of which is earning a pittance in interest.  That is why more and more 40 and 50 year old Clacton landlords have been investing some of that cash into Clacton bricks and mortar, as they search for a low risk investment opportunity.

Buying a Clacton buy to let property isn’t risk free, but there are certainly things you can do to mitigate and lower one’s exposure to risk. You see by buying a rental property, it potentially offers an enigmatically decent proposition in terms of being able to obtain attractive returns that beat inflation and savings accounts, yet without taking the levels of risk associated with stock markets.

The UK residential property market has long been the safest form of collateral for lenders of all varieties. Against a backdrop of a greatly changing economic environment, Clacton house prices have been extraordinarily robust, increasing by over 2148% between 1974 and today. Some will say there have been significant property price falls, namely in 1975, 1988 and 2008, yet each time after this has been followed by an upturn in property values. For the record, the stock markets in the same time frame only rose by 432.5%!

.. and that is the best thing about buy to let property. Unlike the stock market, with its unfathomable equities, shares and bonds, that nobody really understands (as they are controlled by some faceless whizzkid in Canary Wharf!) with a buy to let property, landlords can take control and understand their investment .. in fact you can touch and feel the bricks and mortar investment.

..  but before you go out and buy any old Clacton property, plenty of landlords still get it wrong. You have to be aware of your legal responsibilities when it comes to tenant safety, tenants deposits, energy certificates and in the new year, landlords will have the added responsibility of checking the immigration status of prospective tenants. Get it wrong and big fines and even prison is an option – but that’s why many agents use a letting agent to manage their property for them.

Next, you have to buy the right property at the right price. Recently I have seen some really heart breaking situations in Clacton and the immediate area, of people paying way too much for a property, only to lose out when they came to sell. One example that comes to mind is that of a property owner on centrally located Victory Road in Clacton .. a decent three bed semi-detached house that has been divided into 2 apartments, the top floor apartment being 46 sq metres inside (495 sq ft in old money) sold in October 2009 for £118,500. In the summer, it only obtained £73,500, a drop of 37.97% or 7.93% a year - a very disappointing result.

Oxford Crescent with 6.4% Return!

An ideal buy to let investment, this three bedroom semi detached house located in Oxford Crescent has been listed with Omega and is being offered with no onward chain.

Positioned just 0.2 miles to Clacton railway station, this home is ideally positioned for all local amenities and primary & secondary schools.

This property would achieve a monthly rental of £725 - £750; therefore based on purchase price of £140,000 this home shouldn't be missed!

Click here for further information!

http://www.rightmove.co.uk/property-for-sale/property-57282107.html

6.9% Yield on Marigold Avenue

Sheens have listed this four bedroom terraced house located in Marigold Avenue for £155,000.

The property itself is offered in immaculate decorative order and conveniently situated within a half mile of Bockings Elm local shopping amenities.

Four bedroom properties of this size and condition would achieve a rental figure of £895 - £925, therefore based on the rental figure of £895 PCM, and purchase price of £155,000; this property would return 6.9%!

For more information and images, click the following link.

http://www.rightmove.co.uk/property-for-sale/property-38962242.html

What does 2016 have in store for the Clacton Property Market?

Clacton house prices up or Clacton house prices down? ... and if so, by how much? Those of you who read the Clacton Property Blog will know I am not the sort of person who pulls punches nor someone who ever fails to give a forthright and straight talking opinion – so here are my thoughts for the 16,099 Clacton homeowners and landlords.

The average Clacton property is 7.9% higher today than it was a year ago, which doesn't sound a lot, but when you consider inflation is currently running at -0.1% (ie consumer/retail prices are dropping) and average salary growth is only around 2.5% pa, this is bad news for first time buyers as property affordability continues to decrease (although I was reading in The Times the other day that wage inflation (ie salary growth) is showing signs of weakening).

Some commentators have said the higher stamp duty taxes announced a few weeks ago in the Autumn Statement for buy to let landlords, concerns over first time buyer affordability and the outlook of UK interest rate rises in 2016 will really dampen the property market. I hope you all read my previous article about what the new stamp duty rule changes would REALLY mean for Clacton landlords in my blog, but I believe the real issue in the Clacton property market is the shortage of property to buy, as people either worry there will be no suitable house to move to, or cannot afford to upgrade. However, on the supply side, Mr Osborne said in his Autumn Statement that he will change the planning laws to ensure the government meets the pledge made at the General Election (back in May) of 200,000 new homes a year.  All I can say is .. good luck George hitting those numbers!

Why? Because houses take years to build .. not months .. so George and his fabled house building aside .... where does that leave us in Clacton in 2016?

Well, talking of supply ... whilst Mr Osborne builds his properties (and let’s be honest - a week doesn't go by without him being filmed on a building site with a high viz jacket and hard hat building a house here and there!), let us look at the shortage of properties for sale. Back in January 2012, 1,234 properties were for sale in Clacton .. today that figure is 796. On the face of it, this means there is less choice for Clacton buyers – but it also means with a restricted supply of properties for sale .. it keeps property prices high for Clacton house sellers.

Everything isn't all doom and gloom though ... again back in January 2012, the average property in Clacton took 157 days to find a buyer .. latest figures state this has dropped to 115 days .. a drop of 27% in how long it takes to find a buyer. However, when you delve even deeper, the best performing type of property today in Clacton is the 3 bed, which only takes 98 days to find a buyer (on average) compared to the 1 bed, which takes 137 days. It just goes to show, even though the average has dropped since 2012, how varied that change has been!

So, back to the question everyone is asking .... What will happen to property values in Clacton in 2016?  I am going to suggest they will rise between 6.5% and 7.5% ... nothing out of the ordinary, but unless something cataclysmic happens in the world, 2016 will be like 2015! For more thoughts, opinions and views on the Clacton property market .. visit the Clacton Property Blog www.clactonproperty.blogspot.co.uk

6% Yield on Trunette Road

Sheens Estate Agents have added this three bedroom semi detached house located on Trunette Road, Clacton for £160,000.

The property itself is located on the 'Lake Walk' development, just 0.8 miles from Clacton railway station and within 500 yards of local shopping facilities, and standing just 0.6 miles to local schooling, this property makes an ideal family home. 

Properties in this location generally achieve a rental figure of £775 - £795 PCM, therefore based at £160,000 purchase price and rental figure of £795 PCM, this home would offer a 6% yield!

For further information and pictures, click the following link.

http://www.rightmove.co.uk/property-for-sale/property-38810433.html

Clacton Vs Ipswich - Clash of the Property Market Titans

Many landlords have been asking me my thoughts on the Clacton property market recently, and in particular, what is happening to property values. My calculations show property values in Clacton quite interestingly grew in the month of September by 0.3%. When one looks at the annual growth, Clacton values are 7.7% higher (when comparing Sept 14 to Sept 15).  However, there are signs that the fundamental growth of property values in Clacton has now peaked, despite those average property values being above levels recorded in 2007 (just before the 2008 crash).

Even though prices are higher this month, this impressive rise of Clacton property values masks the underlying truth in what is really happening to local property values in the town. Throughout 2015, property values have been yo-yo like on a month by month basis, being quite volatile in nature.  For example:

• September 2015 - 0.3% rise
• August 2015 - 0.6% rise
• July 2015 - 1.1% rise
• June 2015 - 0.2% rise
• May 2015 - 0.9% rise
• April 2015 - 0.8% rise
• March 2015 - 0.8% rise

This is in part due to seasonal factors, as well as mortgage approvals increasing over June and July and then falling by over 15% in August, according to the Council of Mortgage Lenders (CML).

The outlook for the Clacton property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Clacton property values are still running ahead of salaries and average property values are 8.24% above the levels recorded in 2007.

Talking to fellow property professionals in the town, demand for property has been showing signs of moderating in the final few months of 2015, which in turn will lead to a slight slowdown in the pace of house price growth in the run up to the festive season. You see, it is really important not to read too much into one month’s (September’s) headline figures.

Readers might be interested to note that before the 2008 property crash, all the UK region’s housing markets tended to move up and down in tandem like the Clacton Synchronised Swimming team at the Clacton Leisure Centre Swimming Pool!  Since then though, the Greater London property market took off like a rocket in 2009/10, whilst the rest of the UK only really started to grow in 2012/13, and even then that growth was a lot more modest than the Capital’s.  Looking closer to home, it can even be different in neighbouring towns, areas and cities, so whilst Clacton property values are 7.7% higher than a year ago (as mentioned above), Ipswich’s property values are 5.5% higher than a year ago. (although, Southend’s are surprisingly higher at 9.5% higher!)

I cannot stress enough the importance of doing your homework.  One source of information and advice is the Clacton Property Blog where I have similar articles to this about the Clacton property market and what I consider to be the best buy to let deals around at any one time in the town, irrespective of which agent it is on the market with.  If you haven’t visited and you are interested in the local property market in Clacton….. you are missing out! 

Values of Clacton Terraced Houses smash through the £185/sqft barrier

The Council of Mortgage Lenders (CML) latest snapshot of the buy to let mortgage market shows us that buy to let landlords haven’t been put off by the Chancellors announcements on the way buy to let’s are taxed.

Last month, the CML stated £1.4billion was borrowed by UK landlords to purchase 10,500 buy to let properties, up 26.5% from the same month in 2014, when only 8,300 properties were bought with a buy to let mortgage. Go back two years and the number of buy to let mortgages used for purchasing (again not re-mortgaging) is 36.4% higher! Even more interesting has been the fact that the average amount borrowed has risen as well. The average buy to let mortgage last month was £133,330, up from £128,480 a year ago.

In Clacton, I am speaking to more and more landlords, be they seasoned professional landlords or FTL’s (first time landlords), as they read reports that the Clacton rental market is doing reasonably well, with rents and property values rising.  Interestingly, one landlord recently asked how much he should be paying per square foot (more of that in a second).

The first thing you have to decide is whether you want great capital growth or great rental yield, as every knowledgeable landlord knows, you can’t have both. Over the last twenty years, property values in Clacton have risen by 236.74%, compared to Greater London’s 436.2%. This has proved that capital growth increases faster in the more expensive South, but your investment money doesn’t go very far, meaning there won’t be as much rental yield from a 1 bed flat in Chelsea (2% per year at best with a fair wind) as a 2 bed semi in Clacton. However, whilst the figure of 236.74% is an average for the area, certain areas of Clacton have seen capital growth much higher than that and others areas much worse (we have talked about those in previous articles).

If you recall in an earlier article, my research reveals that Clacton apartments tend to generate a better yield than houses, probably because several sharers can afford to pay more than a single family. But houses tend to appreciate in value more rapidly and may well be easier to sell, simply because there are fewer being built.

So what should you be buying in Clacton, and more importantly, how much?

• The average apartments in the town are currently selling for approximately £165 per square foot
• Terraced houses in Clacton are currently obtaining, on average, £147,900 of £187 per square foot
• An average semi in Clacton is selling for £173,100 (and achieving £201 per square foot).

Now these are course averages, but it gives you a good place to start from. In the coming weeks, I will look at rents being achieved on Clacton houses and apartments, and the yields that can be obtained, depending how many bedrooms there are. 

Key Road - £129,995

Sheens have added this two bedroom end of terraced house located in Key Road for £129,995.

The property itself offers lounge, separate dining room, kitchen, two bedrooms and bathroom and offers neutral décor and carpets throughout, therefore ready to be let!!!

With similar properties achieving £625 - £650 PCM, this property offers a 6% yield!

Click here for more information and pictures!

http://www.rightmove.co.uk/property-for-sale/property-38536350.html

Pier Avenue Apartment with 8.25% return!

Blake and Thickbroom have listed this two bedroom first floor flat conveniently located within Clacton's town centre with the added benefit of Off Road Parking!

The property itself offers open plan lounge/kitchen (17'2 x 13'9), bathroom and two bedrooms with the master measuring 14'1 x 13'2. 

Two bedroom properties in this location achieve a monthly rental of £550, therefore based at £80,000 purchase price, this property would offer a healthy 8.25% yield return, before ground rent & service charges taken into account. 

For further pictures and details, click the following link!

http://www.rightmove.co.uk/property-for-sale/property-38560464.html

Clacton Buy to Let - Freehold House or Leasehold Flat?

Well my Clacton Property Blog reading friends, as seems to be all the rage with Jeremy Corben asking the PM questions emailed in to him at Prime Minster Question Times, I to wish to answer a question emailed into me from a potential Clacton landlord last week. Nice chap, lives in Holland-on-Sea, and it turns out, after having a coffee with him, he works in IT, has a spare bit of cash (now the kids have flown the nest) and wanted to buy his first buy to let property.

His main question was ... Do I buy a freehold house or a leasehold flat in Clacton?

Most people will say freehold every time, because you own the land. However, it’s not as simple as that (it never would be would it!). The definitive answer though is to research what Clacton tenants want in the area of Clacton they want! The tenant is ultimately your customer, and, if they don't want to rent what you decide is best to buy, then you are not going to have a successful BTL investment. So starting with the tenant in mind and working backwards from there, you won’t go far wrong. In a nutshell, find the demand before you think about creating the supply.

Leasehold flats and apartments in Clacton are excellent in some respects as they offer the landlord certain advantages, including the fact a flat can be initially cheaper to buy. Yields can be quite good, offering better cash flow. The building will already be insured and yes there is a service charge, but it’s still for a service at the end of the day and that cost is spread between many others (i.e. when your freehold house roof goes, its falls 100% on your shoulders) and one of my favourites is that there is often no garden to maintain or blown down fences to replace!

However, some Clacton leasehold flats can suffer from poor capital growth. Some leasehold properties have no cap on the level of the service charge and it may get out of control. The length of the lease will significantly affect value if not renewed before it gets too short. Thankfully there’s not many, but some Clacton apartments/flats have burdensome clauses. Finally, with leases, there can be sub-letting issues – which means you can’t let them out.

So what do the numbers look like? Well since 2003, the average freehold property in Clacton (detached, semis and terraced) has risen from £133,124 to £161,874, a rise of 22% whilst the average Clacton leasehold property (flats and apartments) has gone up in value from £87,997 to £98,162, a more mediocre rise of 12%. 

I was really interested to note that of the 9,210 rental properties in the Tendring District Council area that the Office of National Statistics believe are either let privately or through a letting agency, 3,847 of them (or 41.8%) are apartments. However, there are only 10,283 apartments in the whole council area (be they owned, council rented or privately rented), which represents 16.6% of the whole housing stock in the area. This really intrigued me that, quite obviously, there is a high proportion of Clacton’s leasehold apartments/flats rented to tenants compared to detached, semi’s or terraced. Fascinating don’t you think?

Every Clacton apartment block, every terraced house or semi is different. Like I said at the start, the definitive answer though is to research what Clacton tenants want in the area of Clacton they want. Demand for town centre apartments, near good transport links can be popular and can offer the Clacton landlord very good yields with minimal voids. However, Clacton terraced houses and semis, whilst not always offering the best yields (although sometimes they can), they do offer the Clacton landlord decent capital growth.

My advice to the prospective landlord as it is to you is do your homework.  One such website, which only talks about the Clacton buy to let Property Market, is the Clacton Property Blog. Another source of info many Clacton landlords use is me! What many Clacton landlords do, irrespective of whether you are a landlord of ours, a landlord with another agent or a DIY landlord, if you see any property in Clacton, that catches your eye as a potential buy to let property, be it a terraced house, semi or flat ... email me and I will email you back with my thoughts (although I will tell you what you need to hear .. not want to hear!)

11% return on Station Road, Clacton!

Offered with vacant possession, a chance to acquire this two bedroom first floor maisonette situated in the heart of Clacton's town centre, the seafront is within 200 yards and train station within a quarter of a mile for £60,000 with Scott Sheen & Partners.

The property does require some refurbishment, however Two bedroom properties located within town centre achieve a rental in the region of £525 - £550 PCM, therefore based at £60,000 this property offers an attractive return of 11%!!

For further information, click the following link.

http://www.rightmove.co.uk/property-for-sale/property-38515875.html

Town Centre Apartment with 9.4% return!

Bond Estates have added this two bedroom top floor apartment in Pallister Road for £70,000.

The property benefits from electric heating, separate W.C and double glazing but does require modernisation. The lease length is 999 years commencing from 15/04/1988 and with ground rent and service charges set at approx £300 a year, this property could make an ideal investment.

Two bedroom town centre apartments, generally speaking offer good size accommodation and will rent in the region of £525 - £550 PCM, therefore based at £70,000 this property offers a fantastic return of 9.4%.

See more details for this property here! http://www.rightmove.co.uk/property-for-sale/property-38472498.html

Great Clacton Apartment for £67,500

Scott Sheen and Partners have listed this one bedroom first floor flat situated in the popular area of Great Clacton, located within two hundred yards of local convenience store, and approximately two and half miles from Clacton's town centre, mainline railway station and seafront. 

One bedroom apartments are always in demand and properties in this area achieve a rental in the region of £475 PCM, therefore meaning a return of 8.4%, based on the full asking price of £67,500!

For further picture and information, click the following link here!

http://www.rightmove.co.uk/property-for-sale/property-30648243.html

Has Osborne killed buy to let in Clacton?

Well George Osborne, in his Autumn statement last week, caused Clacton landlords to ask whether buy to let is a viable investment option, when he announced that landlords, when buying another buy to let property from April 2016 will have to pay an additional 3% stamp duty on top of the standard rate. So for example, it means that the stamp duty bill for a £285,000 buy to let home will rise from the current £4,250 to £12,800 from April next year. 

Some say property in Clacton will be worth less because potential landlords will not be willing to pay as much for them, and if house builders or existing homeowners don't feel they are going to get as much for them , then there is less motivation to build / sell them?... and the person we can blame for this is George himself. Back in 2012, he choose to utilise the British housing market to kick start the UK economy, with  subsidies, Funding for Lending and Help to Buy. However, whilst that helped the Tory’s get back into power in 2015, some say this impressive growth in the UK property market has been at the expense of pricing out youngsters wanting to buy their first home.

Others say this is the straw that breaks the camel’s back as over the next four years Landlords will slowly lose the ability to offset all their mortgage interest against tax on rental income, after changes announced in the Summer Budget. At the moment, landlords can claim tax relief on buy to let mortgage monthly interest repayments at the top level of tax they pay (ie 40% or 45%). However, over the next four years this will be reduced slowly to the basic rate of tax – currently 20%.

Surely this is the end of Buy to Let in Clacton? Probably.. but before we all run to hills panicking .. let me give you another thought.

Stamp Duty rules were changed in December 2014. Before then, landlords were eagerly buying up properties under the ‘old slab style Stamp Duty’ system. For example, the stamp duty bill on that £285,000 property was lower on the old slab style duty (pre Dec 2014), at £8,550, yet it isn't a million miles away from new £12,800 stamp duty bill. Interestingly though, George has left a legal loophole in the new rules, because when it comes to selling up, they can offset purchase costs against any eventual capital gains tax, including stamp duty.

I believe that total returns from buy to let will continue to outpace other investments, such as the stock market, gilts, bonds and even pensions. Also, the best part about investing in property is that it is bricks and mortar. You can touch it, you can feel it, and it isn't controlled by some City whiz kid in Canary Wharf .. the British understand property and that goes a long way!

Buy to let has enough impetus behind it that prospective landlords will continue to buy even with a larger stamp duty bill. Clacton landlords will need to be savvy with what property they buy to ensure the extra stamp duty costs are mitigated.   Buying buy to let property is a long term venture. In the past, it didn't matter what property you bought in Clacton or at what price – you would always make money. Now with these extra taxes, the adage of ‘any old Clacton house will make money’ has gone out the window.   You wouldn't dream of investing in the stock market without at least looking in the newspapers or taking advice and opinion from others, so why wouldn't you take the same advice and opinion about buying a buy to let property in Clacton?

Homerton Close, Great Clacton

Front Estate Agents are delighted to offer for sale this two double bedroom house situated in a quiet cul-de-sac in the popular area of Great Clacton. 

The property has recently been redecorated throughout and has the additional benefit of a garage,off road parking and recently installed gas heating system.

Great Clacton is an extremely popular area, nestled on the outskirts of Clacton, but providing excellent access to the A133 for Clacton town centre & further beyond towards Colchester. 

We have recently let a similar property in the same street for £680 PCM, therefore based on the asking price of £134,995, this property offers an attractive 6% yield.

For more information, click the following link!

http://www.rightmove.co.uk/property-for-sale/property-52021792.html

A pair of Maisonettes in Wellesley Road

Revolution Estates have listed this pair of two bedroom maisonettes located on Wellesley Road for £190,000.

Both properties are currently tenanted and have the benefit of a new 99 year lease.

The agent has declared that these properties offer an approximate yield of 7%, therefore based on my calculations means that the monthly rentals are in the region of £550.

For further information, click the following link.

http://www.rightmove.co.uk/property-for-sale/property-38277975.html 

6% return on Three Bed Blenheim Gate

Bairstow Eves Clacton have listed this three bedroom end terraced house on Legerton Drive, Clacton, which is situated on the popular modern development of Blenheim Gate, Clacton for £175,000.

Built by Bloor Homes, the popular Blenheim Gate development is located to the outskirts of Clacton and has proven to be extremely popular for home owners and tenants alike.

We have recently let a similar three bedroom semi detached house in Lewis Road for £875 PCM, therefore based on purchase price of £175,000, this property would return 6% yield.

For further information, click the following link!

http://www.rightmove.co.uk/property-for-sale/property-35092281.html

Clacton Tenants pay 32.1% of their Salary in rent

I had the most interesting chat with a local Clacton landlord the other day about my thoughts on the Clacton property market. The subject of the affordability of renting in Clacton came up in conversation and how that would affect tenant demand. Everyone wants a roof over their head, and since the Second World War, owning one’s home has been an aspiration of many Brits.  However, with rents at record highs, many are struggling to save enough for a house deposit.

Let’s be honest, it’s easy to get stuck in a cycle of paying the rent and bills and not saving, but even saving just a small amount each month will sooner or later add up.  George Osborne announced such schemes as the upcoming Help to Buy ISA, where the Government will top up a first time buyers deposit.

Therefore, I thought I would do some research into the Clacton property market and share with you my findings.  Clacton tenants spend on average just over a third of their salary to have a roof over their head.  According to my latest monthly research, the average cost of renting a home in Clacton is £628 per month.  When the average annual salary of a Clacton worker stands at £23,479 per year, that means the average Clacton tenant is paying 32.1% of their salary in rent.  I doubt there is much left to save for a deposit towards a house after that, and that my Clacton Property Blog reading friends is such a shame for the youngsters of Clacton.

You see one the reasons for rents being so high is property prices being high.  As I have mentioned before, there is a severe lack of new properties being built in Clacton.  It’s the classic demand VS supply scenario, where demand has increased, but the number of houses being built hasn't increased at the same level.  Also, Clacton people aren't moving home as often as they did in the 80’s and 90’s, meaning there are fewer properties on the market to buy.  If you recall, a few weeks ago I said back in Autumn 2007, there were over 2,300 properties for sale in Clacton and since then this has steadily declined year on year, so now there are only 921 for sale in the town.

Back in Autumn 2007, there were over 2,300 properties for sale in Clacton and since then this has steadily declined year on year, so now there are only 921 for sale in the town. 

So, the planners in Clacton haven’t allowed enough properties to be built in the town and existing Clacton homeowners are not moving home as much as they used to, thus creating a double hit on the number of properties to buy.  This is a long term thing and the continuing diminishing supply of housing has been happening for a number of decades and there simply aren't enough properties in Clacton to match demand, these are the reasons houses prices in Clacton have remained quite buoyant, even though economically, over the last 5 years, it was one of the worst on record for the country and the East region as a whole.

However, things might not be all doom and gloom as originally thought, as a recent Halifax Survey  (their Generation Rent 2015 Survey) suggested  more and more people may be long term, if not lifelong tenants. In fact there is evidence in the report to suggest that the perception of how difficult it is to get on the housing ladder is vastly different between parents and people aged 20 to 45.  It seems from this survey that the state of the UK economy has shifted priorities quite significantly in quite a short space of time.  With fewer people able to save up the deposit required by mortgage lenders, more and more people are continuing to rent.  This delay in moving up the property ladder has driven rents across the UK up as more people were seeking rental properties .

It is often said that more people in central Europe rent for longer or never own their own property. The last two census in 2001 and 2011 show that proportionally the percentage of people who own their own home in Britain is slowly reducing and, as a country, we are becoming more and more like Germany.   That isn't a bad thing as Germany is considered to have a more successful economy, one of the main stays, often quoted,  is because they have a much more flexible and mobile workforce, (which renting certainly gives) and from that, they have a higher personal income than in the UK. 

     

Therefore, if we are turning into a more European model and the youngsters of Clacton and the Country have changed their attitudes, demand for rental properties will only and can only go from strength to strength, good news for Clacton tenants as wages will start to rise and good news for Clacton landlords, especially as property values in Clacton are now 8.2% higher than year ago!