5 Reasons to Embrace Buy to Let in the Wake of Section 24!
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The average asking price of property in Clapham dropped by 5% or £43,919 compared to a year ago, taking the current average asking price to £830,517 compared with £874,436 this time last year.
The overall drop in asking prices is being put down to sellers being more realistic with their pricing and looking to benefit from the impending mortgage interest rate rises later in 2018. This is great news for first, second and third time buyers in Clapham starting their property hunting in the usually active spring market this year facing the opportunity of paying less for the property of their dreams. Even better news is that whilst first time buyers also have to pay less for their property, they also have the bonus of the Chancellor stopping Stamp Duty being paid by first time buyers!
Looking at the different sectors of the Clapham property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices …
The rents paid by Clapham tenants are now standing at £2,188 per calendar month (PCM), a rise of 2.25% year on year and 0.45% higher month on month.
However, this attention-grabbing monthly rent figure masks stark differences in the various different parts of the Clapham rental market. Demand in Clapham for high quality family homes with two or three bedrooms in good catchment areas for schools remains really robust due to tenants wanting access to the schools. Other influencing factors that make certain areas popular are the proximity to transport links. However, I have noticed a drop in demand (and thus rents achieved) for property where the landlord hasn’t kept the property fresh; in terms of decoration, carpets, replacement windows and poor heating.
So, what does all this mean for Clapham landlords and tenants?
With the new tax rules for landlords, many believed that the number of rental properties would narrow throughout 2017, as landlords sold up their Buy to let properti…
A noteworthy number of buy to let landlords in Britain plan to buy more properties over the next year notwithstanding the frustrations, challenges and seismic changes in the private rented sector. According to Aldermore, the specialist Buy To Let lender, their research shows around 41% of portfolio buy to let landlord’s objective is to grow their buy to let portfolio (i.e. Portfolio landlords are landlords that own more than one property).
So, I thought, “Are Clapham landlords feeling the same?” If so, if these numbers were applied to the Clapham private rental market, what sort effect would it have on the Clapham property market as whole?
Talking to the landlords I deal with, most are feeling quite optimistic about the future of the Clapham rental market and the prospect it presents notwithstanding the doom and gloom prophecies that the property market will shrink. Many of those Clapham landlords who are looking to enlarge their portfolio are doing so because they still see the …