What does that mean for local Landlords and Homeowners?
The balancing
act of being a Southampton Buy To Let landlord is something many do well at.
Talking to numerous Southampton landlords, they are very aware of their
tenants’ capability to pay the rent and their own need to raise rents on their
rental properties. Despite the
‘perceived ‘dark clouds of Brexit, evidence suggests many landlords feel more confident
than they were in the Summer and Autumn of 2018 about aiming to push rents
higher on their Southampton Buy To Let properties.
Looking at
the data for the last 7 years, this shows that throughout the Summer months, the
rents new tenants have had to pay on move in have increased at a higher rate
than during the colder months of Winter. This is because the Summer months are normally
a time when renters like to move, meaning demand increases for rental
properties yet supply remains pretty ridged.
Yet the
Winter stats buck that trend and this is great news.
Rents in Southampton on average for new tenants moving in
have risen 2.4% for the month, taking overall annual Southampton rents 2.7%
higher for the year
However,
several Southampton landlords have expressed their apprehension about a slowing
of the housing market in Southampton and I believe, based on this new evidence,
they may be overstated. Before we
get the bubbly out though, the other part of investing in property is what is
happening to capital values (which will
also be of interest to all the homeowners
in Southampton as well as the Southampton Buy To let landlords). I
believe the Southampton property market has been trying to find some form of
balance since the New Year. According to the Land Registry….
Property Values in Southampton are 3.0% higher than they
were 12 months ago
Yet, these
figures reflect the sales of Southampton properties that took place in the late
Autumn of 2018 and now are only exchanging and completing during the Winter / early
Spring months of this year.
The
reality is the number of properties that are on the market in Southampton today
has risen by 1% since the Autumn
and that will
have a dampening effect on the property market. As tenants have had less choice, buyers now have
more choice .. and that will temper Southampton property prices as we head into
the middle of 2019.
Be you a Southampton
landlord or Southampton homeowner, if you are preparing to sell your Southampton
property in 2019, it’s important, especially with the rise in the number of properties
on the market, that you are pricing your property realistically
when you bring it to the market. With the likes of Rightmove, Zoopla and
OnTheMarket on everybody’s mobile phones and laptops, buyers have access to every property on the
market and they will compare and contrast your home with other properties like
yours – and will more than likely dismiss your property rather than view it.
To all the Southampton homeowners that aren’t planning
to sell though – this talk of price changes is only on paper profit or loss. To those that are moving .. most people that
sell, are buyers as well, so as you might not get as much for yours, the one
you will want to buy won’t be as much. Look at the deal as a whole, the difference
between what you sell yours for and what you buy at. Finally, all the Southampton landlords –
keep your eye’s peeled – I have a feeling there may be some decent Southampton buy
to let deals to be had in the coming months.
If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.
Email me on brian.linehan@belvoir.co.uk or call on 023 8001 8222.
Don't forget to visit the links below to view back dated deals and Southampton Property News.
Twitter, https://twitter.com/sotonbelvoir
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