Bradville property market outperforms the Loughton property market by 102%

I recently had a conversation with a landlord who lives in Shenley Church End, who took me up on the offer of an informal chat about the Milton Keynes property market the other week after he read the ‘Milton Keynes Property Blog’.  We got talking about investing in Milton Keynes property and how different areas of the town performed against other areas. Investing in MK property is a balancing act between capital growth and yield. On the one hand going for strong capital growth seems an obvious choice because of the potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties tend to be low meaning if you are taking a high percentage mortgage, the rent doesn’t pay the mortgage payments.

 

 

 

It became really interesting when we compared the area of Loughton, which is next door to Shenley Church End, against the Bradville Estate, where he was brought up many years ago. In the Loughton area, a very nice four bedroom detached house will sell for between £380,000 and £430,000 and rent for between £1,350 and £1,550 per month.  This would give our landlord a yield of around 4.2% per year, very reasonable indeed.  Until you consider those one bed town houses in Bradville, which sell for around £84,100 and let (depending upon condition) for around £600 per month, giving a yield of 8.5% per year. That means yields in Bradville are 102% proportionally higher than those achieved in Loughton.

 

However, as I said a few weeks ago, yields are not everything in property investment. Another is how the value of the property goes up over time. Better properties in better locations don’t have the best yields, but their property values tend to go up quicker over the long term.   The average value of property in Bradville, since 2004/2005, has risen by 8.3% whilst average values in Loughton during the same time frame, have risen 27.5%. 

 

 

 

Now I know there aren’t many landlords who would buy a large 4 bed detached in Loughton to rent out and there are many risks in buying a small one bed house in Bradville to rent out. It’s just that looking at the Milton Keynes property market as a whole and in more depth enables me to give you the best advice and opinion to help you find the best investment property to suit your individual long term goals. It is in your interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, please come and see me at our offices on London Road in Stony Stratford.

Old Wolverton 3 bed semi, £200k giving 5.6% yield but look at the potential for capital growth

Here we have a fairly un-pretentious 3 bed semi, in the quiet area of Old Woverton. On the market today for offers in excess of £200k, this represents good value for such a property that could go on the rental market at £925 PCM with very little effort, giving you a decent 5.6% yield as it stands.

Properties locally have also shown some good capital growth over the past decade, in fact a typical 3 bed semi on this road would have sold for £91,500 back in 2000, and even last year they were achieving £206k. So over the intervening 13 years, values have increased by 125% for a house just like this one, so you can see that any investment here would be safe and secure.

 

 

For more information about this or other potential investment properties that we could introduce you to, call us now on 01908 562582

Fair wear and tear 'most misunderstood area' of renting process

Fair wear and tear is the most misunderstood area of the whole renting process, according to the Association of Independent Inventory Clerks. Some landlords still have unrealistic expectations centred on the deductions that can and cannot be made from the tenant deposit.

It is a commonly held view in the lettings industry that the House of Lords has stated that a tenant cannot be held responsible for damage at the end of a tenancy caused by ‘reasonable use of the premises and the ordinary operation of natural forces’. However, while the precise source for this quote is unknown, it is a general guideline that has been accepted across the industry.

Recent figures from the Tenancy Deposit Scheme annual survey reveal that cleaning related issues make up 56% of all disputes. Damage to property accounts for 43%, redecoration 30%, rent arrears 17% and gardening issues 13%.

It seems that 55% of all disputes are raised by tenants unhappy about the proposed deductions from their deposit and of these, only 21% received all their deposit back. In contrast, 45% of disputes were raised by landlords and agents and of these, only 19% received the amount in dispute.

Pat Barber, Chair of the AIIC comments:

“There are two main things to remember with wear and tear. Firstly, the tenant has a duty of care to return a property in the same condition at the end of the tenancy as found at the start and as listed on the initial inventory report – with allowance for fair wear and tear.

“Secondly, the law does not allow for betterment or ‘new for old’ when assessing the action needed to be taken after a check-out inspection. If an item was old at check–in and after a two year tenancy, there is some additional damage, the law will not allow a landlord to simply replace this item with a new one. Instead, some sort of compensation is allowable towards future replacement. This betterment principle applies to cleaning issues as well. If a carpet was badly stained at time of check-in, a landlord cannot expect the tenant to pay for cleaning at time of check-out, no matter how long the tenancy has been.

Landlords and agents should always encourage tenants to be present at any check out inspection and they should be made aware of all the issues that are raised in a check out report. This includes cleaning, damage to items listed on the inventory, additional gardening, or missing items. This discussion will inevitably include the subject of fair wear and tear.

So what can a landlord expect a tenant to fund from their deposit over and above normal fair wear and tear? AIIC has put together some helpful tips:

- Cleaning: This covers all rooms, especially kitchens and bathrooms. If an oven dirty for example, then the tenant can be charged for it to be professionally cleaned. Cleaning is never a wear and tear issue. If something can be cleaned, then it should be, at the tenants’ cost, providing there is documentary evidence in the form of a detailed inventory to prove the item was clean at time of check in.

- Damage: Any damage to the property and its contents can be charged to the tenant. Common and expensive damage includes burns to carpets and floorings; chips and cracks to baths and sinks; serious scratches to ovens; cracked and broken windows; and burns to kitchen worktops.

- Walls: If the tenant has painted the property with a non-neutral colour, without the landlord’s permission, then the cost of repainting can be charged to the tenant. Any serious damage caused to walls and ceilings will fall under the tenant’s responsibility also.

- Gardens: Tenant’s play equipment, swimming pools and trampolines can cause large areas of damage to lawns, as do dogs and other animals. This is not a wear and tear issue and the tenant must be held responsible for making good the damaged areas.

 

Old Stratford 2 bed maisonette + garage, £160k to buy offering a yield of 5.8%

Situated in a quiet and peaceful location on the outskirts of town, this lovely 2 bed maisonette is good value at £160k so could be worth considering for a new investor – if you do, ask if there are any service charges to pay, and who owns or uses the other garage units (usually YOU would insure them as they are part of your building, so it is worth knowing).

  

 

 

This will rent for £775 PCM, giving you a yield of 5.8% right now, and will always appeal to those who prefer a quieter and more relaxed pace of life. For the investor, at £160k this has shown an increase of around £32k or 24% in less than 10 years since it was built.

 

 

If you would like to be first in line for the next investment opportunity, call us now on 01908 562582 for further details

 

 

 

Middleton 2 bed apartment (yes another one!), £185k with a 5.8% gross yield, over 6% if furnished

It's deja-vu time here, as this is yet another beautiful apartment in Middleton, this time on the ground floor, with all the same benefits and potential as the previously mentioned property on here on 11 August.

 

 

 

 

Presented as it is, with no work required, this would also achieve £900 unfurnished and as high as £950 PCM fully furnished, and we STILL have a list of applicants who missed out on the other unit who would be interested in this property. Yields of between 5.8 - 6.1% are possible, based on unfurnished or fully furnished to a good standard.

If this sells for £185k, that would represent a 31% increase in value since this property was built in 2009, and with a great secondary school and a brand new Waitrose on the doorstep, this will continue to appreciate in value.

 

If you would like to be first in line for the next investment opportunity, call us now on 01908 562582 for further details.

 

 

 

2 bed apartment in the centre of Newport Pagnell, beautifully refurbished, £185k with a yield of 5.6%, but what a stunner

What about this stunningly presented and tastefully restored 2 bed apartment, slap bang in the centre of the historic market town of Newport Pagnell.

 

 

 

 

 

Offered for sale at £185k, this will surely attract a very sophisticated & professional tenant, and would command a rental of around £875 in todays market, offering a 5.7% gross yield. With all the work done for you this would be a painless investment, which will surely grow in value in the coming years.

 

Please call us on 01908 562582 for further details.

 

 

 

 

 

 

Recent auction results

Following on from our article on 5 August (3 bed terrace in Wolverton going through auction), we now have the results in.

 

 

 

 

You can see that the winning bid was £159k, so let's hope the buyer can save some money on the refurbishment to make it worth their while financially. This would still rent today for between £900-£925 dependant upon finish, and would possibly sell for around £190k if they wished to move it on quickly.

 

 

Letting agent hit with £3,000 bill after failing to arrange gas safety check

A lettings agency’s failure to arrange a £60 gas safety certificate has cost it almost £3,000. MT Properties Central, based in Small Heath,Birmingham, failed to arrange the statutory gas safety check on the property, and subsequently failed to produce any confirmation that the checks had been carried out. The Health and Safety Executive (HSE) was made aware of concerns over the existence of a gas safety record for the property and tried several times to get a response from the company. It then issued an Improvement Notice on August 16, 2013.

 

Birmingham Magistrates’ Court heard on Friday that the Notice required MT Properties to employ a Gas Safe registered engineer to carry out the necessary checks by September 6, 2013, and produce evidence that the notice had been complied with. However, the company failed to comply with the notice or to request an extension. The notice remains open today and HSE is awaiting evidence of compliance.

 

 

 

MT Properties Central pleaded guilty to breaching the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work etc Act 1974, and was fined £2,000 and ordered to pay costs of £957. HSE inspector Karl Raw said after the hearing: “MT Properties Central had plenty of time to comply with HSE’s enforcement notice, so there was no excuse for failing to do so, particularly for a property management and letting business. A gas safety check by a registered engineer can be organised quickly and easily and cost as little as £60.

By not carrying out their duty as the agent of the landlord, MT Properties Central potentially put lives and property in danger by flouting the laws that are designed to protect people in their homes while using gas appliances.

 

 

 

 

At Belvoir, we make it our first priority to see that a property (and therefore the landlord) complies with ALL current and imminent legislation, and if that should involve extra works or costs to a landlord then it still has to be completed. Gas safety, along with electrical safety, are some of the biggest concerns of tenants, and our duty of care to them is paramount. Often we meet potential landlords who wish to rent out their property yet still refuse to pay out a penny making it safe, secure, dry and habitable. Our reputation is well known around these parts as being very strict and we will never tolerate such practices, nor support those who think that this approach is acceptable. As a new landlord or investor, make sure you ask the right questions of your agent - in fact, how about approaching it like this "Would I allow my children to live in such a property?" If the answer is no, then why would you expect someone else to?

 

 

 

 

For further advice as to how you are required to protect your tenants, and to understand your responsibilities as a new landlord, call us on 01908 562582 or pop into our offices for a chat at any time.

4 bed townhouse, canal side location, stunning condition, £245k with a yield of 6.1% and great potential for future growth

This beautiful former showhome is truly stunning, and offers all the space a growing family needs, in a quiet and peaceful canal side development.

 

 

For sale at £245k, this property offers the investor with a little more to spend, a great chance for future capital appreciation, as this is certain to remain a desirable option for families in the future. With an immediate rental value of around £1250 PCM, it also offers a very good return on investment of 6.1%. What a safe place to invest your money!

 

For further details, please call us on 01908 562582

 

 

Grange Farm 3 bed semi offering a steady 5.2% return and great potential for capital growth

This nice 3 bed semi with garage is up for sale with Taylors at Westcroft for £250k which appears to be in great condition, and more importantly is in a great location offering huge scope for future capital appreciation. We have clients always waiting for just such a property in this area, and would rent for approximately £1095 PCM in todays market, giving you a steady 5.2% yield but in a very secure package.

http://www.zoopla.co.uk/for-sale/details/34252232

 

 

 

Newport Pagnell nice 3 bed, £825 PCM giving a 5.3% return

How about a tidy and spacious 3 bed mid-terrace in Newport Pagnell with a garage? Wilson Peacock have this up for £185k and I'm sure there is some wriggle room on that price - this would rent today for around £825 PCM at least, giving you a 5.3% return. The location is one that is often fought after as there is never enough supply of decent family homes in this area, so pop down and have a look for yourself...

http://www.rightmove.co.uk/property-for-sale/property-46825046.html?premiumA=true

 

Following on from Fridays story...landlords, beware that there are agents out there STILL committing fraud

An agent who failed to protect tenants’ deposits has pleaded guilty in a long-running saga. Helen Gregory, of Chesterfield, was charged on three counts of fraud in July last year and appeared before magistrates in August.

She has now admitted three charges, relating to each of three companies, of engaging in unfair commercial practices, in a prosecution brought by Trading Standards. The charges related to three businesses in Matlock and Chesterfield, Derbyshire: Beechwood Lettings, Beechwood Property Portfolio, and Letzlet. Between them, the charges relate to a time period spanning April 1, 2007, and October 2012.

 

The local Matlock Mercury (link below) specifically cites the Deposit Protection Service, with earlier stories saying that money had never been paid in. Gregory, who had earlier pleaded not guilty to the three charges of fraud, will be sentenced on September 15.

 http://www.matlockmercury.co.uk/news/local/matlock-estate-agent-admits-shame-1-6783372


In February 2012, the Property Ombudsman expelled Beechwood after it failed to pay an award made against it, and had delayed paying rent into a complainant landlord’s account on 12 occasions over a period of 19 months. A month later, the TPO said Beechwood Property Portfolio was illegally displaying the TPO logos for both sales and lettings, despite not belonging to a redress scheme. The firm was continuing to sell homes.

TPO had earlier delayed the expulsion of Letzlet, trading as Beechwood Lettings, while the complainant landlord was helped to obtain a county court judgment of £2,176.









and also....................









An estate agent who handed himself over to police admitting to a £180,000 fraud during the housing market crash, has been spared jail. Paul Stephen Onslow, 45, traded as Stephen Paul Estate Agents in Harlow, Essex. He has been given an 18-month prison sentence suspended for two years, a six-month electronically tagged curfew which means he must stay at home between 9pm and 6am, and 250 hours of unpaid work.

His sentencing follows a guilty plea at Chelmsford Crown Court to one offence of fraudulently abusing his position as the proprietor of an estate agency business between April 2008 and April 2013 by using £43,736 of client money. Judge Christopher Ball said that Onslow, of previously good character, had avoided jail because he had walked into Harlow police station to give himself up.

In mitigation, Robert James said that not one landlord or tenant had lodged any complaint, and that no one was aware of the fraud until Onslow confessed.

The court heard that the charge related to 14 landlords. However, Onslow had confessed that the total was almost twice as much, at £180,000. He had used the money, robbing Peter to pay Paul, while trying to trade out of financial difficulties.

 

http://www.hertfordshiremercury.co.uk/Hoddesdon-estate-agent-avoids-jail-180-000-fraud/story-22718953-detail/story.html


So, as a landlord or investor, is it more important that you save maybe £8-16 per month on your management fees, or would you rather be fully protected with an ARLA licenced agent with full Client Money Protection and who abides by industry codes of conduct. For just such peace of mind, please pop along to our offices here in Stony Stratford at any time to see just how we work in your best interests.

Neath Hill 2 bed maisonette, needs a bit of tidying but 8% return possible

Now here is a 2 bed maisonette that could do with a quick bit of a clean up, maybe a fresh lick of paint and then straight to market. You get 2 bedrooms plus a garage, and it would rent for £700 PCM at least, maybe more if you went to town with the interior décor. Speak to Michael Anthony for full details about this, and for £105k this could be a fairly good starter investment for someone, and the 8% minimum gross return is very appealing..... 

http://www.rightmove.co.uk/property-for-sale/property-31917783.html?showcase=true

The Property Ombudsman backs Client Money Protection

Fresh calls for letting agents to offer Client Money Protection have been backed by the Property Ombudsman (TPO) scheme in the wake of several high-profile cases where landlords have lost thousands of pounds in rental income by dealing with an agent that did not have sufficient cover to protect consumers from rental fraud. The Codes, which will be effective from 1st August 2014 and reflect the developments in industry practice and legislative changes affecting both consumers and agents.


TPO's support for Client Money Protection (CMP) comes almost a year since the cover became available to the whole of the lettings industry through trade bodies and insurance brokers. TPO provides a free, fair and impartial dispute resolution service for consumers. The scheme operates a one-off membership fee for agents and does not charge any case fees to ensure every registered agent is able to refer complaints to the Ombudsman if they cannot reach a resolution with the consumer directly. With more than 11,000 lettings agents already voluntarily following TPO's unique Code of Practice, the scheme represents more than 60% of the industry.

 

http://www.tpos.co.uk/index.htm

Gerry Fitzjohn, Chief Operating Officer of TPO said:

'As the UK's largest property redress scheme, it's truly upsetting to hear of cases where landlords have lost thousands of pounds in rent paid to an agent that has been used unlawfully and cannot be recovered because the agent did not have CMP cover in place.

'Rather than choose to use an agent that charges the lowest fee, landlords must ask if the agent has a CMP policy in place to protect their rental income.

'Within the industry, thousands of agents are already CMP protected but there are still a number of firms that are unaware of the scale of protection it offers. A TPO survey1 even revealed that some agents wrongly thought CMP duplicated the deposit protection schemes when that simply isn't the case.

'With more people renting now than ever before, landlords and agents need to understand that CMP provides the guaranteed assurance that the rent collected by CMP protected agents is covered against fraud and unlawful use.

'TPO wholeheartedly supports CMP cover – the more the industry speaks out about this issue to raise awareness the better.

More than £23 billion is paid annually in rent, of which £6 - £10 billion is collected by agents on behalf of landlords2. With 80% of TPO's letting agents understood to have CMP cover through their trade body or an independent insurance broker, landlords are being urged to ask their letting agent if has CMP cover to protect the landlord's rental income.

Susie Crolla, CEO of the Guild of Letting & Management, extended her support by saying:

'I feel it is important that we demonstrate best practice in everything that we do; even when there is as yet no legal requirement for us to do so. From 1 October 2014, therefore, being registered with TPO and having CMP cover will become a mandatory condition of membership for The Guild Subscription.

'While many members of The Guild are already registered and covered, this decision is an important step akin to an ‘outward sign of inward grace'. It sends a message to our stakeholders that we are serious about adopting the highest standards of professionalism and integrity as an organisation that is progressive and can be trusted.'

Oliver Wharmby of Lonsdale Insurance Brokers Ltd, which operates the PI + CMP scheme, said:

'Recent press headlines have really hit home how rental fraud can affect agents of all sizes. Smaller firms may initially question the cost of CMP cover but all it takes is one rogue employee and innocent directors can find themselves in awful trouble with their landlords and the police.

'Consumer education is key – agents must use their CMP cover as a point of difference over competitors. We're hearing that more landlords are starting to ask the right questions which is driving more agents to seek cover. However, it's only when every landlord insists their agent offers them CMP protection that we will see a level-playing field where CMP is offered by all.'

Here in this office, we are fully ARLA licenced with professional indemnity insurance and a client money protection scheme, and belong to an independent redress scheme and fully adhere to ARLA codes of practice for your peace of mind and financial protection.

Leadenhall 1 bed flat, a good starter property for £117.5k offering 6% yield

An easy, affordable starter property here for the novice investor, offering 1 bedroom and a modern interior that any young professional would want and expect. Michael Anthony are asking just under £118k for this, you could achieve an easy £600 PCM on the rental market right now, giving you 6% gross yield and a way to learn the finer points of being a landlord.

http://www.zoopla.co.uk/for-sale/details/34084486

 

 

Broughton 1 bed apartment, 6%+ yield and ready to occupy

Another property where we already manage a unit in the same building (in fact, just next door!), so we know what they go for, who wants them and what they will pay.

 

This tidy property looks clean & modern and could be on the rental market today at £650 PCM, maybe as high as £695 fully furnished to a good standard, giving you a gross yield of between 6-6.4%. eMoov in Newport Pagnell await your instructions on this one....

http://www.zoopla.co.uk/for-sale/details/34129136

 

 

 

 

Redhouse park, quite a new development, 6% yield on this smart 2 bed apartment

Redhouse Park is a fairly new development running along the north side of Wolverton Road, between the fishing lakes and the M1 just before the underpass to Newport Pagnell.

This 2 bed apartment is very tidy and modern, with a huge kitchen and 2 good sized bedrooms. At £165k with Carters in Stony Stratford, this would rent out today for £825 at least, possibly £875 if fully furnished, giving you a minimum gross return of 6%, and being in such a new & desirable area there is plenty of scope for capital growth in coming years. Have a look for yourself....

http://www.zoopla.co.uk/for-sale/details/34159366

Middleton 2 bed flat offering 6% return, no work required

As we already manage another apartment in this block, we already know the neighbours and the prices around here. Presented as it is, with no work required, this would achieve £900 unfurnished and as high as £950 PCM fully furnished, and we already have a list of applicants who missed out on the other unit! Speak to Brown & Merry to learn more about why this would be a good place to invest your cash, and have a look at the condition of the inside...

http://www.zoopla.co.uk/for-sale/details/34154735

The postcode lottery (no not that one!)

This week let's have a look at one popular postcode area on the West of Milton Keynes, MK4.

 

This postcode incorporates approximately 6 estates currently, with development land for at least 1 or 2 more in the future, so there is scope for growth and new facilities in years to come. The oldest residential part is to the east, just off Watling Street V4, called Furzton. This was built in the early 1980s, and development came to an end around 20 years later. The further west you move, the newer the area, the newest area currently inhabited is Oxley Park which was started in 2007 and is still being built as we speak. On the extreme west of MK4 there is the brand new estate called Tattenhoe Park - building in this area stalled during the credit crunch years, with the main infrastructure and even a school in place but standing in isolation, and building of residential properties came to a halt for almost 7 years, until now.

So let's look at some historical and current residential sale prices to give you an idea of how this one postcode area can differ so spectacularly by focussing on specific, middle-of-the-road (excuse the pun) streets on 3 estates.

1) Braybrooke Drive, Furzton:

2014 average house price = £161,250

2007 (pre credit crunch) average price = £160,250

2000 average price = £85,500

From the above, you can see that current prices are now back to their peak, and will now only rise slowly from here as they are currently on parity with the market for this area which is established and maturing nicely, as you can see from the 88.59% growth since 2000. The current average rental price for a 3 bed semi with garage on this road is around £850.

2) Mavoncliff Drive, Tattenhoe

 

 

2014 average house price = £233,000

2007 (pre credit crunch) average price = £230,500

2000 average price = £154,750

This is now a virtually fully developed area, with the odd sporadic development plot left over, and prices are still on the up as it offers pleasant surroundings, nicely presented properties and is on the edge of the city with great road links. Prices are now increasing from their pre-credit crunch peak, and are a good 50.56% up since 2000, with plenty of room to move upwards further. The current average rental price for a 3 bed semi with garage on this road is around £900.

3) Oberon Way, Oxley Park

 

 

2014 average house price = £257,500

2007 (pre credit crunch) average price = £281,800

Wow - on paper this looks like a bad area that is making a loss, but that's completely wrong, and a case of statistics not telling the whole truth. This area was only started in 2007, so the prices listed above are the NEW prices paid by eager, keen homemakers, many of whom would have bought off plan and paid a premium for this. Today, there is a small local centre with a range of shops, and an excellent school on the estate with an ever diminishing catchment area, and as such families literally fight to be as near as possible to try and guarantee a place there. The current average rental price for a 3 bed semi with garage on this road is around £1100.

This is most definitely a developing area, with many building sites on the fringes and a lot of new play parks and other community facilities coming online, and prices will continue to rise for the next decade at least as the 'West Flank' of Milton Keynes continues to grow and becomes a great place to live, with high demand from owner occupiers and tenants alike. In fact, just last week we were reviewing potential investment properties on this road with an investor, and they have subsequently had there offer accepted for a lovely 3 floor 3 bed semi that we mentioned on 28 July, which is exactly the sort of property which is in high demand locally at this time.

As ever, for further information, or to speak with us about what you should buy next (and where), call us on 01908 562582 for an informal chat, or come to our offices for a coffee if you are in the area.

 

Monkston - nice area, nice house, a good long term investment for capital growth offering 5.1% yield today

This area is VERY popular, and property prices have risen 86% in this street alone since 2002. The value here is in the long term capital appreciation, in an area that will always attract families due to good local schools and excellent shopping just over the road at Kingston. Alan Francis will sell you this for £190k (but do try to get this lower, £180-185k sounds fair to me), and it would rent today for £800 PCM, giving you an easy return of 5.1% as it stands, with all that potential for future growth as well.

 

http://www.zoopla.co.uk/for-sale/details/33954474

 

 

Average tenancy deposit soars by £300 in 7 years

The average tenant is having to find a deposit of £1,197.73, says Mydeposits. The scheme says the amount has gone up by over a third – or £303.91 – in the last seven years.

 

http://www.mydeposits.co.uk/

 

The average deposit size in London is £1,760.70, while the cheapest average deposits are in Yorkshire & the Humber at £592.75. In the second quarter of this year, deposit amounts rose by 4.12% (or £47.34) compared with the first quarter. Mydeposits has taken the data from its records of over 2.3m tenancies across England and Wales.

 

 

 

At Belvoir, we tend to take a deposit of 1.5 times the monthly rent (but slightly less on 1 bed properties), making the average deposit for a 2 bed property with us approximately £1125. Why 1.5 times the rent? If we took just 1 rental amount, the tenant could just stop paying the rent early, leaving you the landlord with no buffer or contingency to cover any damage or excessive wear & tear they might cause.

 

Here in this office we prefer to use TDS, The Dispute Service. This involves us holding the deposit in a bonded account for all our managed properties. For unmanaged tenancies or mid-term take overs, we tend to use DPS, the Deposit Protection Service, and they would hold the funds themselves, but for both cases we would be the office who issues the prescribed information to both landlord & tenant, and we must lodge & register the funds in each case within 14 days from receipt.

 

http://www.thedisputeservice.co.uk/

 

http://www.depositprotection.com/

 

 

Auction 3 bed terrace in Wolverton offering potential returns of around 8%

On 14th August there is a property auction at The Hilton Hotel in Milton Keynes, and lot 9 is a 3 bed terraced house in Wolverton:

http://auctionhousebb.co.uk/ 

Now it looks like it may need around £30k spending on it, but it would currently rent out in a renovated & modern style at around £900-925 PCM, so if your total spend was £130k it would yield 8.5%, a spend of £140k would yield 7.9%. For someone looking for a decent project, and with the skills or connections to do this for under £130k, it represents a great return on investment. Certainly worth a look and an afternoon out down at an auction I'd say.

Browns Wood 2 bed semi, a good little earner for you, 5.3% yield

Browns Wood is a lovely area on the fringes of Milton Keynes, popular with employees of Red Bull Racing and The Open University and offering quick & easy access to the M1 motorway for commuters. This 2 bed semi is up for sale with Michael Anthony for £180k (haggle a bit and get the price under £175k!), rented out it would command around £780 giving you a 5.3% yield.

http://www.zoopla.co.uk/for-sale/details/33949656

Monthly statistics for Milton Keynes in July 2014

 

 

Time now for a quick round-up of what has been happening in the sales & lettings market in the Milton Keynes area throughout the whole of July 2014 (figures obtained from Rightmove and do not include private lets):

 

 

 

 

 

You can see from the rental figures above, that it is 1, 2 & 3 beds that are most in demand, with 2 beds being the most popular by some margin. If you look at sales, it seems 2, 3 & 4 beds are what people want to buy, this time it is 3 beds that win the race.

 

So, as an investment, what should you buy?  

 

 

 

 

Well demand is there to rent anything up to 3 bedrooms, but there are already a high number of potential private purchasers chasing those same properties, so this will inevitably increase pressure on availability and start to drive prices up, whereas 1 beds are in a lot less demand by purchasers, yet these are often prized by renters. Our experience here tells us that 1 & 2 beds will always find a rental market, they will always rent out quickly but there will be more churn (turnover of tenants), and these will command a slightly higher yield than 3 beds. However, for families wishing to rent, 3 beds are a must, and in the catchment area of great schools (particularly secondary) they will always be in high demand and with less churn, and it is these properties that tend to offer better scope for capital growth in the long term whilst providing a steady yield of around 5-5.3% yield today.

 

If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Milton Keynes rental market for the first time, please email me on stephen.tunney@belvoirlettings.com  or pop into our office on London Road in Stony Stratford.