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Peterborough Landlords – Are You Considering Later Year Tenants?

It is vital landlords know who their most likely tenants are. You might have an idea of which tenant you wish to reach, but if this group of people are not looking for rental property in your area, you might limit your chances of success.

At Just Lets Peterborough, we are pleased to say we know the local lettings market, and local tenants. There is a broad range of people looking for rental options in and around Peterborough these days.

It might be that there is a group of prospective tenants you haven’t considered as of yet.

There are reasons to rent in later years

Paragon Bank states that in the past decade, the number of English households in the 55- to 64-year-old category who are in the private rental sector with an Assured Tenancy has risen by 118%.

Some of the reasons cited by the respondents include:

  • 68% of people aged 55 or over said renting suited their needs or that they enjoyed renting
  • 63% of respondents said they were happy to not have to worry about repairs around their home

There are benefits in letting to older tenants

Jamie Turnbull is the Business Director of Girlings, and he has spoken about some of the benefits that older tenants receive from renting. Some of these benefits include:

  • No longer having to worry about property maintenance
  • Having a secure and safe living environment
  • If the tenant(s) has downsized by selling a property, they have money to use as they see fit
  • Renting allows many retirement aged tenants to live in the heart of their town and centre, being closer to facilities and transport option
  • Smaller properties should be easier to clean

Jamie Turnbull said; “As people age their housing needs change. Many want to live independently but also be part of a community of people so they have likeminded people to socialise with. They also want to feel safe and secure with people around them should they ever need help.”

Jamie Turnbull continued by saying; “Renting in a retirement development can offer all these benefits. It also enables people to downsize from a larger home to somewhere smaller and more manageable, releasing capital in a home if they own it. Most of our properties come with assured tenancies too so people have the same security of tenure as home ownership.”

Jamie Turnbull concluded by saying; “Renting can also be an easier way to move to somewhere new without the commitment involved with buying a home. Many people want to retire to popular retirement hotpots such as by the sea or close to lots of amenities.”

If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.

 

A Handy Tax Guide

At Just Lets Peterborough, we know being a landlord is rewarding, but at times, it can be overwhelming. We are here to help you, and we offer a wide range of serviced aimed at assisting landlords in Peterborough.

If you would like to learn more about what landlords should do to satisfy their tenants and enhance their chances of success, please get in touch. We are always happy to discuss this matter with local landlords.

Also, we know many landlords are concerned about taxes. We have compiled a handy tax guide for you, which you can access below.

Just Lets P – Handy Tax Guide

£567.53pm – The Profit made by every Peterborough Property Owner over the last 20 years

As we go headlong into 2018, I believe UK interest rates will stay low, even with the additional 0.25% increase that is expected in May or June. That rise will add just over £20 to the typical £160,000 tracker mortgage, although with 57.1% of all borrowers on fixed rates, it will probably go undetected by most buy-to-let landlords and homeowners. I forecast that we won’t see any more interest rate rises due to the fragile nature of the British economy and the Brexit challenge. Even though mortgages will remain inexpensive, with retail price inflation outstripping salary rises, it will still very much feel like a heavy weight to some Peterborough households. 

Now it’s certain the Peterborough housing market in 2017 was a little more subdued than 2016 and that will continue into 2018. Property ownership is a medium to long-term investment so looking at that long-term time frame; the average Peterborough homeowner who bought their property 20 years ago has seen its value rise by more than 243%.

This is important, as house prices are a national obsession and tied into the health of the UK economy as a whole. The majority of that historic gain in Peterborough property values has come from property market growth, although some of that will have been added by homeowners modernising, extending or developing their Peterborough home.

Taking a look at the different property types in Peterborough and the profit made by each type, it makes interesting reading..

However, I want to put aside all that historic growth and profit and looking forward to what will happen in the future. I want to look at the factors that could affect future Peterborough (and the Country’s) house price growth/profit; one important factor has to be the building of new homes both locally and in the country as a whole. This has picked up in 2017 with 217,350 homes coming on to the UK housing ladder in the last year (a 15% increase on the previous year’s figures of 189,690. However, Philip Hammond has set a target of 300,000 a year, so still plenty to go!

Another factor that will affect property prices is my prediction that the balance of power between Peterborough buy-to-let landlords and Peterborough first-time buyers should tip more towards the local first-time buyers in 2018.

The Council of Mortgage Lenders expects the number of buy to let mortgages to drop by 34% from levels seen in 2015. This is because of taxes being increased recently on buy-to-let and harder lending criteria for buy to let mortgages, which means I foresee a gradual move in the balance of power in favour of first-time buyers rather than buy-to-let landlords. First time buyers will also be helped by The Chancellor eradicating Stamp Duty for all properties up to £300,000 bought by first-time buyers in the recent budget.

This means Peterborough buy-to-let landlords will have to work smarter in the future to continue to make decent returns (profits) from their Peterborough buy-to-let investment. Even with the tempering of house price inflation in Peterborough in 2017, most Peterborough buy to let landlords (and homeowners) are still sitting on a copious amount of growth from previous years.

The question is, how do you, as a Peterborough buy to let landlord ensure that continues?

Since the 1990’s, making money from investing in buy-to-let property was as easy as falling off a log. Looking forward though, with all the changes in the tax regime and balance of power, making those similar levels of return in the future won’t be as easy. Over the last ten years, I have seen the role of the forward thinking letting agents evolve from a ‘rent collector’ and basic property management to a more holistic role, or as I call it, ‘landlord portfolio strategic leadership’. Thankfully, along with myself, there are a handful of letting agents in Peterborough whom I would consider exemplary at this landlord portfolio strategy where they can give you a balanced structured overview of your short, medium and long-term goals, in relation to your required return on investment, yield and capital growth requirements. If you would like such advice, speak with your current agent – or whether you are a landlord of ours or not – without any cost or commitment, feel free to drop me a line.