Blogspot: The South Ockendon Property Blog
By Paul Tobias-Gibben
As we move headlong into 2018, I believe UK interest rates will remain low, even with the additional 0.25% hike expected in May or June. This increase will add just over £ 20 to the typical £ 160,000 tracker mortgage, although with 57.1% of all fixed rate borrowers, it is unlikely to be detected by most homeowners and homeowners. rental. I predict that we will not see any more interest rate hikes due to the fragile UK economy and the challenge of Brexit. Even though mortgages will remain cheap, with retail price inflation outpacing wage increases, it will still seem like a heavyweight for some South Ockendon households.
It is now certain that the South Ockendon housing market in 2017 was a bit more subdued than in 2016 and this will continue in 2018. Real estate ownership is a medium to long term investment, so watch this time frame. long term time; the average South Ockendon homeowner who bought their property 20 years ago has seen its value increase by over 406%.
This is important, as house prices are a national obsession and linked to the health of the UK economy as a whole. The majority of this historic gain in South Ockendon property values has come from the growth of the real estate market, although some of this increase has been added by homeowners who are modernizing, extending or expanding their southern homes. of the Ockendon.
Taking a look at the different types of properties in South Ockendon and the profits each type makes, it’s an interesting read.
However, I want to put all that historic growth and earnings aside and look forward to what will happen in the future. I want to look at the factors that could affect the future growth / earnings of South Ockendon (and country) home prices; an important factor must be the construction of new homes both locally and in the country as a whole.
This resumed in 2017 with 217,350 homes joining the UK housing ladder last year (a 15% increase from the previous year’s figures of 189,690. However, Philip Hammond has fixed a target of 300,000 per year, so still a lot to go!
Another factor that will affect house prices is my prediction that the balance of power between South Ockendon rental landlords and South Ockendon first-time buyers should lean more toward local first-time buyers by 2018.
The Council of Mortgage Lenders expects the number of purchase mortgages to decline by 34% from levels seen in 2015. This is due to the recent increase in taxes on loans to rent and more difficult lending criteria for purchase mortgages, which means I see a gradual shift in the balance of power in favor of first-time buyers rather than rental owners. First-time buyers will also be helped by the Chancellor eradicating stamp duty on all properties up to £ 300,000 bought by first-time buyers in the recent budget.
This means South Ockendon rental landlords will need to work smarter in the future to continue to generate decent returns (profits) from their South Ockendon rental investment. Even with housing price inflation moderating in the South Ockendon in 2017, most of the South Ockendon are buying to leave homeowners (and landlords) still sitting on bountiful relative growth. in previous years.
The question is, how do you as South Ockendon buy to let the owner make sure this continues?
Since the 1990s, making money investing in rental property has been as easy as falling off a log. Going forward however, with all the changes in the tax system and the balance of power, it will not be so easy to achieve these similar levels of return in the future. Over the past decade, I have seen the role of forward-thinking rental agents evolve from a “rent collector” and basic property management to a more holistic role, or as I call it, “Strategic leadership of the owner portfolio”. Fortunately, along with myself, there are a handful of rental agents in South Ockendon that I would consider exemplary in this owner portfolio strategy where they can give you a balanced structured overview of your short, medium and long term goals. , against your required ROI, yield and capital growth requirements. If you would like such advice, speak with your current agent – whether you own it or not – at no cost or commitment, please write to me.