Biggleswade Buy-to-Let Return / Yields – 2.4% to 6% a year

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The mind-set and tactics you employ to buy your first Biggleswade buy to let property needs to be different to the tactics and methodology of buying a home for yourself to live in. The main difference is when purchasing your own property, you may well pay a little more to get the home you (and your family) want, and are less likely to compromise. When buying for your own use, it is only human nature you will want the best, so that quite often it is at the top end of your budget (because as my parents always used to tell me – you get what you pay for in this world!).

Yet with a buy to let property, if your goal is a higher rental return – a higher price doesn’t always equate to higher monthly returns – in fact quite the opposite. Inexpensive Biggleswade properties can bring in bigger monthly returns. Most landlords use the phrase ‘yield’ instead of monthly return. To calculate the yield on a buy to let property one basically takes the monthly rent, multiplies it by 12 to get the annual rent and then divides it by the value of the property.

This means, if one increases the value of the property using this calculation, the subsequent yield drops. Or to put it another way, if a Biggleswade buy to let landlord has the decision of two properties that create the same amount of monthly rent, the landlord can increase their rental yield by selecting the lower priced property.

To give you an idea of the sort of returns in Biggleswade…

 

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Now of course these are averages and there will always be properties outside the lower and upper ranges in yields: they are a fair representation of the gross yields you can expect in the Biggleswade area.

As we move forward, with the total amount of buy to let mortgages amounting to £199,310,614,000 in the country, landlords need to be aware of the investment performance of their property, especially in the era of tax increases and tax relief reductions. Landlords are looking to maximise their yield – and are doing so by buying cheaper properties.

However, before everyone in Biggleswade starts selling their upmarket properties and buying cheap ones, yield isn’t the only factor when deciding on what Biggleswade buy to let property to buy.  Void periods (i.e. the time when there isn’t a tenant in the property between tenancies) are an important factor and those properties at the cheaper end of the rental spectrum can suffer higher void periods too. Apartments can also have service charges and ground rents that aren’t accounted for in these gross yields. Landlords can also make money if the value of the property goes up and for those Biggleswade landlords who are looking for capital growth, an altered investment strategy may be required.

In Biggleswade, for example, over the last 20 years, this is how the average price paid for the four different types of Biggleswade property have changed…

  • Biggleswade Detached Properties have increased in value by 199.4%
  • Biggleswade Semi-Detached Properties have increased in value by 413.8%
  • Biggleswade Terraced Properties have increased in value by 371.9%
  • Biggleswade Apartments have increased in value by 403.8%

It is very much a balancing act of yield, capital growth and void periods when buying in Biggleswade. Every landlord’s investment strategy is unique to them. If you would like a fresh pair of eyes to look at your portfolio, be you a private landlord that doesn’t use a letting agent or a landlord that uses one of my competitors – then feel free to drop in and let’s have a chat. What have you got to lose? 30 minutes and my tea making skills are legendary!

 

Biggleswade House Prices Outstrip Wage Growth by 18.97% since 2007

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I recently read a report by the Yorkshire Building Society that 54% of the country has seen wages (salaries) rise faster than property prices in the last 10 years. The report said that in the Midlands and North, salaries had outperformed property prices since 2007, whilst in other parts of the UK, especially in the South, the opposite has happened and property prices have outperformed salaries quite noticeably.

As regular readers of my blog know, I always like to find out what has actually happened locally in Biggleswade. To talk of North and South is not specific enough for me. Therefore, to start, I looked at what has happened to salaries locally since 2007. Looking at the Office of National Statistics (ONS) data for Central Bedfordshire Council, some interesting figures came out:

 

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Salaries in Central Bedfordshire have risen by 24.47% since 2007 (although it’s been a bit of a roller coaster ride to get there!) – interesting when you compare that with what has happened to salaries regionally (an increase of 18.65%) and nationally, an increase of 17.61%.

Next, I needed to find what had happened to property prices locally over the same time frame of 2007 and today. Net property values in Central Bedfordshire are 43.38% higher than they were in late 2007 (not forgetting they did dip in 2008 and 2009). Therefore…

Property values in the Biggleswade area have increased at a higher rate than wages to the tune of 18.97% … meaning, Biggleswade is in line with the regional trend

 

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All this is important, as the relationship between salaries and property values is the basis on how affordable property is to first (and second, third etc.) time buyers. It is also vitally relevant for Biggleswade landlords as they need to be aware of this when making their buy-to-let plans for the future. If more Biggleswade people are buying, then demand for Biggleswade rental properties will drop (and vice versa).

As I have discussed in a few articles in my blog recently, this issue of ‘property-affordability’ is a great bellwether to the future direction of the Biggleswade property market. Now of course, it isn’t as simple as comparing salaries and property prices, as that measurement disregards issues such as low mortgage rates and the diminishing proportion of disposable income that is spent on mortgage repayments.

On the face of it, the change between 2007 and 2017 in terms of the ‘property-affordability’ hasn’t been that great. However, look back another 10 years to 1997, and that tells a completely different story. Nationally, the affordability of property more than halved between 1997 and today. In 1997, house prices were on average 3.5 times workers’ annual wages, whereas in 2016 workers could typically expect to spend around 7.7 times annual wages on purchasing a home.

The issue of a lack of home ownership has its roots in the 1980’s and 1990’s. It’s quite hard as a tenant to pay your rent and save money for a deposit simultaneously, meaning for many Biggleswade people, home ownership isn’t a realistic goal. Earlier in the year, the Tories released proposals to combat the country’s ‘broken’ housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving bad landlords.

This is all great news for Biggleswade tenants and decent law-abiding Biggleswade landlords (and indirectly owner occupier homeowners). Whatever has happened to salaries or property prices in Biggleswade in the last 10 (or 20) years … the demand for decent high-quality rental property keeps growing. If you want a chat about where the Biggleswade property market is going – please read my other blog posts on http://www.biggleswadepropertyblog.co.uk   or drop me note via email, like many Biggleswade landlords are doing.

 

 

 

 

11.98% Drop in Biggleswade People Moving Home in the Last 10 Years

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I was having a lazy Saturday morning, reading through the newspapers.  I find the most interesting bits are their commentaries on the British Housing Market.  Some talk about property prices, whilst others discuss the younger generation grappling to get a foot-hold on the property ladder with difficulties of saving up for the deposit.  Others feature articles about the severe lack of new homes being built.  A group of people that don’t often get any column inches however are those existing homeowners who can’t move!

Back in the early 2000’s, between 1 million and 1.3 million people moved each year in England and Wales, peaking at 1,349,306 home-moves (i.e. house sales) in 2002.  However, the ‘credit crunch’ hit in 2008 and the number of house sales fell to 624,994 in 2009.  Since then this has steadily recovered, albeit to a more ‘respectable’ 899,708 properties by 2016.  This means there are around 450,000 fewer house sales (house-moves) each year compared to the “noughties”.  The question is … why are there fewer house sales?

 

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To answer that, we need to go back 50 years.  Inflation was high in the late 1960’s, 70’s and early 80’s.  To combat this, the Government raised interest rates to a high level in a bid to lower inflation.  Higher interest rates meant the householders monthly mortgage payments were higher, meaning mortgages took a large proportion of the homeowner’s household budget. However, this wasn’t all bad news since inflation tends to erode mortgage debt in ‘real spending power terms’.  Consequently, as wages grew (to keep up with inflation), this allowed home owners to get even bigger mortgages.  At the same time their mortgage debt was decreasing, therefore allowing them to move up the property ladder quicker.

Roll the clock on to the late 1990’s and the early Noughties, and things had changed.  UK interest rates tumbled as UK inflation dropped.  Lower interest rates and low inflation, especially in the five years 2000 to 2005, meant we saw double digit growth in the value of UK property.  This inevitably meant all the home owner’s equity grew significantly, meaning people could continue to move up the property ladder (even without the effects of inflation).

This snowball effect of significant numbers moving house continued into the mid noughties (2004 to 2007), as Banks and Building Society’s slackened their lending criteria.  [You will probably remember the 125% loan to value Northern Rock Mortgages that could be obtained with just a note from your Mum!!].  This meant home movers could borrow even more to move up the property ladder.

So, now it’s 2017 and things have changed yet again!

You would think that with ultra-low interest rates at 0.25% (a 320-year low) the number of people moving would be booming – wouldn’t you?  However, this has not been the case.  Less people are moving because:

(1) low wage growth of 1.1% per annum

(2) the tougher mortgage rules since 2014

(3) sporadic property price growth in the last few years

(4) high property values comparative to salaries (I talked about this a couple of months ago)

 

What does thistranslate to in pure numbers locally?

 

185 graph Central Bedfordshire

 

In 2007, 6,528 properties sold in the Central Bedfordshire District Council area and last year, in 2016 only 5,746 properties sold – a drop of 11.98%.

 

Therefore, we have just over 782 less households moving in the Biggleswade and surrounding Council area each year.  Now of that number, it is recognised throughout the property industry around fourth fifths of them are homeowners with a mortgage. That means there are around 626 mortgaged households a year (fourth fifths of the figure of 782) in the Biggleswade and surrounding council area that would have moved 10 years ago, but won’t this year.

The reason they can’t/won’t move can be split down into different categories, explained in a recent report by the Council of Mortgage Lenders (CML). So, of those estimated 626 annual Biggleswade (and surrounding area) non-movers, based on that CML report –

 

  1. There are around 225 households a year that aren’t moving due to a fall in the number of mortgaged owner occupiers (i.e. demographics).

 

  1. I then estimate another 88 households a year are of the older generation mortgaged owner occupiers. As they are increasingly getting older, older people don’t tend to move, regardless of what is happening to the property market (i.e. lifestyle).

 

  1. Then, I estimate 37 households of our Biggleswade (and surrounding area) annual non-movers will mirror the rising number of high equity owner occupiers, who previously would have moved with a mortgage but now move as cash buyers (i.e. high house price growth).

 

  1. I believe there are 276 Biggleswade (and surrounding area) mortgaged homeowners that are unable to move because of the financing of the new mortgage or keeping within the new rules of mortgage affordability that came into play in 2014 (i.e. mortgage).

 

The first three above are beyond the Government or Bank of England control.  However could there be some influence exerted to help the non-movers because of financing the new mortgage and keeping within the new rules of mortgage affordability? If Biggleswade property values were lower, this would decrease the size of each step up the property ladder.  This would mean the opportunity cost of increasing their mortgage would reduce (i.e. opportunity cost = the step up in their mortgage payments between their existing and future new mortgage) and they would be able to move to more upmarket properties.

Then there is the mortgage rules, but before we all start demanding a relaxation in lending criteria for the banks, do we want to return to free and easy mortgages 125% Northern Rock footloose and fancy-free mortgage lending that seemed to be available in the mid 2000’s … available at a drop of hat and three tokens from a cereal packet?

We all know what happened with Northern Rock …. Your thoughts would be welcome on this topic.

Supply and Demand Issues mean Biggleswade Property Values Rise by 9.23% in the Last 12 Months

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The most recent set of data from the Land Registry has stated that property values in Biggleswade and the surrounding area were 9.23% higher than 12 months ago and 31.21% higher than January 2015.

Despite the uncertainty over Brexit as Biggleswade (and most of the UK’s) property values continue their medium and long-term upward trajectory. As economics is about supply and demand, the story behind the Biggleswade property market can also be seen from those two sides of the story.

Looking at the supply issues of the Biggleswade property market, putting aside the short-term dearth of property on the market, one of the main reasons of this sustained house price growth has been down to of the lack of building new homes.

The draconian planning laws, that over the last 70 years (starting with The Town and Country Planning Act 1947) has meant the amount of land built on in the UK today, only stands at 1.8% (no, that’s not a typo – its one point eight percent) and that is made up of 1.1% with residential property and 0.7% for commercial property. Now I am not advocating building modern ugly carbuncles and high-rise flats in the Cotswolds, nor blot the landscape with the building of massive out of place ugly 1,000 home housing estates around the beautiful countryside of such villages as Broom, Southill and Northill.

 

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The facts are, with the restrictions on building homes for people to live in, because of these 70-year-old restrictive planning regulations, homes that the youngsters of Biggleswade badly need, aren’t being built. Adding fuel to that fire, there has been a large dose of nimby-ism and landowners deliberately sitting on land, which has kept land values high and from that keeps house prices high.

Looking at the demand side of the equation, one might have thought property values would drop because of Brexit and buyers uncertainty. However, certain commentators now believe property values might rise because of Brexit. Many people are risk adverse, especially with their hard-earned savings. The stock market is at an all-time high (ready to pop again?) and many people don’t trust the money markets. The thing about property is its tangible, bricks and mortar, you can touch it and you can easily understand it.

The Brits have historically put their faith in bricks and mortar, which they expect to rise in value, in numerical terms, at least. Nationally, the value of property has risen by 635.4% since 1984 whilst the stock market has risen by a very similar 593.1%. However, the stock market has had a roller coaster of a ride to get to those figures. For example, in the dot com bubble of the early 2000’s, the FTSE100 dropped 126.3% in two years and it dropped again by 44.6% in 9 months in 2007… the worst drop Biggleswade saw in property values was just 16.73% in the 2008/9 credit crunch.

Despite the slowdown in the rate of annual property value growth in Biggleswade to the current 9.23%, from the heady days of 13.88% annual increases seen in mid 2015, it can be argued the headline rate of Biggleswade property price inflation is holding up well, especially with the squeeze on real incomes, new taxation rules for landlords and the slight ambiguity around Brexit. With mortgage rates at an all-time low and tumbling unemployment, all these factors are largely continuing to help support property values in Biggleswade (and the UK).

For more thoughts on the Biggleswade Property Market, please visit the Biggleswade Property Market Blog: http://www.biggleswadepropertyblog.co.uk

41.9 miles – The average distance people go when they move from Biggleswade

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“How far do Biggleswade people go to move to a new house?”  This was an intriguing question asked by one of my clients the other week.  Readers of my property blog will know I love a challenge, especially when it comes to talking about the Biggleswade property market.

 For the majority, the response is not very far.  It is much more common for homeowners and tenants in Great Britain to move across town than to the next town or county.  Until now, it has been hard to say how many homeowners and tenants moved from and to relatively far away to buy or rent their new home.  However, I carried out some research and requested some statistics from the Royal Mail and what came back was fascinating.

Using statistics for the twelve months up to the middle of Autumn 2019, 304 households moved out of Biggleswade and the average distance was 41.90 miles, the equivalent of moving from Biggleswade to Lakenheath as the crow flies.  The greatest distance travelled was 372 miles, that’s almost 14 marathons, when someone moved to Bridge of Allan in Scotland.

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Considering there were 583 property sales in SG18 in the year and countless tenant moves, the numbers seems consistent.  Once you find a town you like, you tend to want to settle down and if you do move, you might only move to a different neighbourhood, a better transport links or to be closer to the school you want to get your children into.  The likelihood is however is that you won’t travel far.

I then turned my attention to people moving into Biggleswade.  Using the same statistics for the 12 months up to the middle of Autumn 2019, 386 households moved into Biggleswade and the average distance was 29.44 miles, the equivalent of moving from Kettering to Biggleswade, again as the crow flies.  The greatest distance travelled again was 487 miles, that’s the same as 19 marathons when someone moved from Old Aberdeen in Scotland to Biggleswade.

Biggleswade in

I have looked at the data of every person moving into Biggleswade and these have been plotted on a map of the UK. Looking at the map below, it shows exactly where most people come from, when moving into Biggleswade.  As you can see, there are a high proportion of people moving from London and from the South West.

What does all this mean for the landlords and homeowners of Biggleswade?

When an agent markets a property for rent or let, it is vital to know the tenant or property buyer well, that the properties they are letting / selling fit those tenants / buyers, so they almost sell themselves.  These days that means not only knowing how many bedrooms, reception rooms a property offers but the budget buyers and tenants want to spend on a property in that area as well as where they come from.

The estate and lettings industry loves the mantra “location, location, location”.  I say it might be helpful to factor in where and how far people are moving from, so the property can be sold or let more easily.  Many say knowledge is power and whilst I do enjoy writing my blog on the Biggleswade property market, I also use the information to help my clients buy, let and sell well.  So for example, the information gained from this article will enable my team and I to be more efficient in where to direct our marketing resources to ensure we maximise our client’s properties sale-ability or rent-ability.

For more information on the Biggleswade property market and for any advice, please give us a call on 01462 894565 or pop into the office for a chat……we don’t bite!

917 Biggleswade Landlords – Is This a Legal Tax Loop-Hole?

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In November 2015, George Osborne disclosed plans to restrain the buy-to-let (BTL) market, implying its growing attractiveness was leaving aspiring first time buyers contesting with landlords for the restricted number of properties on the market.  One of things he brought in was that tax relief on BTL mortgages would be capped, starting in April 2017.  Before April 2017, a private landlord could claim tax relief from their interest on their BTL mortgage at the rate they paid income tax – (i.e. 20% basic / 40% higher rate and 45% additional rate).

For example, let’s say we have a Biggleswade landlord, a high rate tax payer who has a BTL investment where the rent is £900 a month and the mortgage is £600 per month.  In the tax year just gone (2016/17), assuming no other costs or allowable items, the figures are below:

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  • Annual rental income £10,800.
  • Taxable rental income would be £3,600 after tax relief from mortgage relief

This means they would pay £1,440 in income tax on the rental income and assuming no other changes, the landlord would have income tax liabilities (at the time of writing June 2017) in the tax years of:

  • (2017/18) £1,800
  • (2018/19) £2,160
  • (2019/20) £2,520
  • (2020/21) £2,880

Landlords who are higher rate tax payers are going to have be a lot smarter with their BTL investments and ensure they are maximising their rental properties full rental capability.  However, there is another option for landlords.

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The Biggleswade landlords who own the 917 rental properties

in the town could set up a Limited Company and sell their

property personally to that Limited Company

In fact, looking at the numbers from Companies House, many landlords are doing this.  In the UK, there are 93,262 buy-to-let limited companies, and since the announcement in November 2015, the numbers have seen a massive rise.

  • Q2 2015 / Q3 2015 – 4,193 BTL limited companies set up
  • Q4 2015 / Q1 2016 – 5,403 BTL limited companies set up
  • Q2 2016 / Q3 2016 – 3,007 BTL limited companies set up
  • Q4 2016 / Q1 2017 – 7,149 BTL limited companies set up

 

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By selling their buy to let investments to their own limited company, owned 100% by them, these landlords could then offset the costs of running their BTL’s as an ‘allowable expense’ – effectively writing off the cost of 100% of their mortgage outgoings, wear and tear and upkeep, letting agent’s fees etc.

I am undeniably seeing more Biggleswade landlords approach me for my thoughts on setting up a BTL limited company, so should you make the change to a limited company?

In fact, I have done some extensive research with companies house and in the fifteen months between 1st January 2016 – 31st March 2017, 67 BTL limited companies have been set up in the SG postcode alone.

If you are looking to hold your BTL investments for a long time, it could be very favourable to take the short-term pain of putting your BTL’s in a limited company for a long-term gain.  You see, there are huge tax advantages to swapping property ownership into a limited company but there are some big costs that go with the privilege.

As the law sees the new limited company as a separate entity to yourself, you are legally selling your BTL property to your limited company, just like you would be selling it on the open market.  Your limited company would have to pay stamp duty on the purchase and if you (as an individual) made a profit from the original purchase price, there could be a capital gains tax liability of 18% to 28%.  The mortgage might need to be redeemed and renegotiated too and this could come with exit charges.

On a more positive note, what I have seen by incorporating (setting up the limited company) is landlords can roll up all their little BTL mortgages into one big loan, often meaning they obtain a lower interest rate and the ability to advance new purchase capital.  Finally, if the tax liability is too high to swap to a limited company, some savvy BTL investors are leaving their existing portfolios in their personal name whilst purchasing any new investment through a limited company, just an idea, not advice!

It’s vital that landlords get the very best guidance and information from tax consultants with the right qualifications, experience and insurance.  Whatever you do, always get the opinions from these tax consultants in writing and you shouldn’t hurry into making any hasty decisions.  The modifications to BTL tax relief are being progressively eased in over the next three years so there is no need to be unnerved and rush into any decisions before finding out the specifics as they relate precisely to your personal situation.  With decent tax planning from a tax consultant and good rental / BTL portfolio management (which I can help you with), whatever you do, let’s keep you the right side of the line!

Council House Waiting List in Biggleswade Drops by 78% in last 3 years

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Should you buy or rent a house?  Buying your own home can be expensive but could save you money over the years.  Renting a property through a letting agent or private landlord offers less autonomy to live by your own rules, with more flexibility if you need to move.

Yet, there is a third way that many people seem to forget, but it plays an important role in the housing of Biggleswade people.  Collectively known as social housing, it is affordable housing, which is let by either Central Bedfordshire District Council or a housing association to those considered to be in specific need, at rents below those characteristic in the private rental market.

In Biggleswade, there are 1,072 social housing households, which represent 15.50% of all the households in Biggleswade.  There are a further 741 families in the Central Bedfordshire District Council area on their waiting list, which is similar to the figures in the late 1990’s. The numbers peaked in 2013, when it stood at 3,371 families, so today’s numbers represent a drop of 78%.

Biggleswade 172 Graph

Nevertheless, this doesn’t necessarily mean that more families are being supplied with their own council house or housing association property.  Six years ago, Westminster gave local authorities the authority to limit entitlement for social housing, quite conspicuously dismissing those that did not have an association or link to the locality.

Interestingly, the rents in the social rented segment have also been growing at a faster rate than they have for private tenants.  In the South Bedfordshire District Council area, the average rent in 1998 for a council house / housing association property was £200.94 a month.  Whilst we have no up to date figures, because of the ‘Large Scale Voluntary Transfer’ of all or most of the local authority’s stock was transferred to a Private Registered Provider sector, so the average rent is no longer applicable.  Therefore, using the average rent increase for England of 108% (England’s average rent being £183.08 a month in 1998 and £381.03 a month today) we can guesstimate an average of approximately £415.

When comparing social housing rents against private rents, the stats don’t go back to the late 1990’s for private renting, so to ensure we compare like for like, we can only go back to 2005.  Over the last 12 years, private rents have increased nationally by a net figure of 19.7%, whilst rents for social housing have increased by 59.1%.

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What does this all mean for the homeowners, landlords and tenants of Biggleswade?

Rents in the private rental sector in Biggleswade will increase sharply during the next five years.  Even though the council house waiting list has decreased, the number of new council and housing association properties being built is at a seventy year low.  The government crusade against buy-to-let landlords together with the increased taxation and the banning of tenant fees to agents will restrict the supply of private rental property, which in turn using simple supply and demand economics, will mean private rents will rise.  This makes buy to let investment a good choice of investment again (irrespective of the increased fees and taxation laid at the door of landlords).  It will also mean property values will remain strong and stable as the number of people moving to a new house (and selling their old property) will continue to remain restricted and hence, due to lack of choice and supply, buyers will have to pay decent money for any property they wish to buy.

Interesting times ahead for the Biggleswade property market!

Looking to invest in Biggleswade?

Take a look at this video of a property that has just come to the market with our sales team in Biggleswade.  In a prominent high street position and with an asking price of £190,000 this property would provide a return of 5%.  The size of the property means you could also rent rooms individually and command a yield of around 10%.   Click here to see the rightmove advert and call Satchells in Biggleswade ASAP on 01767 313256 to view!

Should the 3,023 home owning OAP’s of Biggleswade be forced to downsize?

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This was a question posed to me on social media a few weeks ago, after my article about our mature members of Biggleswade society and the fact many retirees feel trapped in their homes.  After working hard for many years and buying a home for themselves and their family, the children have subsequently flown the nest and now they are left to rattle round in a big house.  Many feel trapped in their big homes (hence I dubbed these Biggleswade home owning mature members of our society, ‘Generation Trapped’). Should we force OAP Biggleswade homeowners to downsize?

In the original article, I suggested that we as a society should encourage, through building, tax breaks and social acceptance that it’s a good thing to downsize. However, should the Government force OAP’s?

One of the biggest reasons OAP’s move home is health (or lack of it).  Looking at the statistics for Biggleswade, of the 3,023 homeowners who are 65 years and older, whilst 1,778 of them described themselves in good or very good health, a sizeable 963 home owning OAPs described themselves as in fair health and 282 in bad or very bad health.

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9.33% of Biggleswade home owning OAP’s
are in poor health

If you look at the figures for the whole of  Central Bedfordshire Council (not just Biggleswade), there are only 818 specialist retirement homes that one could buy (if they were in fact for sale).

There are 956 homes available to rent from the Council and other specialist providers (again, you would be waiting for dead man’s shoes to get your foot in the door).  Many older homeowners would not feel comfortable with the idea of renting a retirement property after enjoying the security of owning their own home for most of their adult lives.  My intuition tells me the majority ‘would be’ Biggleswade down-sizers could certainly afford to move but are staying put in bigger family homes because they cannot find a suitable smaller property.  The fact is there simply aren’t enough bungalows for the healthy older members of the Biggleswade population and specialist retirement properties for the ones who aren’t in such good health …

We need to build more appropriate houses in Biggleswade

The government’s   Housing White Paper, published recently, could have solved so many problems with the UK housing market, including the issue of homing our ageing population. Instead, it ended up feeling annoyingly ambiguous. Forcing our older generation to move with such measures as a punitive taxation (say a tax on wasted bedrooms for people who are retired) would be the wrong thing to do.  Instead of the stick, maybe the Government could use the carrot tactics and offered tax breaks for down-sizers.  Who knows, but something has to happen?

Come to think about it,  the word ‘downsize’  is such an awful word.    I prefer to use the word ‘decent-size’ instead of ‘down-size’ as the other phrase feels like they are lowering themselves as though they are having to downgrade themselves in their retirement (and let’s be frank – no one likes to be downgraded).

The simple fact is we are living longer as a population and constantly growing with increased birth rates and immigration.  What I would say to all the homeowners and property owning public of Biggleswade   is more houses and apartments need to be built in the Biggleswade area, especially more specialist retirement properties and bungalows.  The government had a golden opportunity with the White Paper and were sadly found lacking.

A message to my Biggleswade   property investor readers, whilst this issue gets sorted in the coming decade(s), maybe seriously consider doing up older bungalows as people will pay handsomely for them be that for sale or even rent?  Just a thought!

 

992,082 People use Biggleswade Train Station a year…..

Biggleswade station

How does that affect the Biggleswade Property Market?

It might surprise you that it isn’t always the poshest villages around Biggleswade or the swankiest Biggleswade streets where properties sell and let the quickest. Quite often, it’s the ones that have the best transport links. I mean, there is a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Biggleswade, I am frequently confronted with queries about the Biggleswade property market, and most days I am asked, “What is the best part of Biggleswade and its villages to live in these days?”, chiefly from new-comers.  Now the answer is different for each person – a lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Official figures recently released state that, in total, 1,359 people jump on a train each and every day from Biggleswade Train station. Of those, 598 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to London is £5,656 a year.

So, if up to £3.38m is being spent on rail season tickets each year from Biggleswade, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place. That means demand for middle to upper market properties remains strong in Biggleswade and the surrounding area and so, in turn, these are the type of people whom are happy to invest in the Biggleswade buy to let market – providing homes for the tenants of Biggleswade…

The bottom line is that property values in Biggleswade would be much lower, by at least 3% to 4%, if it wasn’t for the proximity of the railway station and the people it serves in the town

This isn’t a flash in the pan. Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested. This has resulted in a huge surge in rail travel.

Biggleswade 163 graph

Overall usage of the station at Biggleswade has increased over the last 20 years. In 1997, a total of 408,877 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 992,082 people using the station (that’s 2,718 people a day).

The juxtaposition of the property and the train station has an important effect on the value and saleability of a Biggleswade property. It is also significant for tenants – so if you are a Biggleswade buy to let investor looking for a property – the distance to and from the railway station can be extremely significant.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station. That is why Rightmove displays the distance to the railway station alongside each and every property on their website.

For more thoughts on the Biggleswade Property market or for any advice please pop into our office for a cup of tea, or give us a call on 01462 894565.