The next five years will see an interesting change
in the Huddersfield property market. My recent research has concluded that the rent
private tenants pay in Huddersfield will rise faster than Huddersfield property
prices over the next five years, creating further issues to Huddersfield’s
growing multitude of renters. In fact, my examination of statistics forecasts
that ..
By 2022, Huddersfield
rents will increase by 22%, whereas Huddersfield property values will only grow
by 16%.
Let me explain why I have come to those
conclusions:
Over the last five years, property values in Huddersfield
have risen by 16.2%, whilst rents have only risen by 7.8%.
Throughout the last few years, and compounded
in 2016, tenant demand for rental properties continued to go up whilst the
Press predicted some landlords expect to reduce their portfolios in the next couple
of years, meaning Huddersfield tenants will have fewer properties to choose
from, which will push rents higher. In fact, talking to fellow property
professionals in Huddersfield, there appears to be privation and shortage of
new rental properties coming on to the Huddersfield lettings market.
Landlords have some intriguing challenges ahead
of them in the coming years most notably in that the Tory’s have changed the taxation
rules for landlords in the way buy to let properties are to be taxed. On top of
that, there is the ban on letting agent fees which is still to come into force
(probably in 2018). When that happened in Scotland in 2012, Scottish letting agents
passed on those fees to their landlords, who in turn increased the rent they
charged to their tenants.
All I would say to Theresa May and Philip
Hammond is that they must be wary about indicating both red and green lights at
the same time to the private rented sector. They can’t expect the armies of
small private landlords to continue to house around a fifth of the population
and then tax the hell out of them. They didn’t invest in buy to let as a
charity or to satisfy any philanthropic urges. Something has to give – and that
will be significant rent rises over the coming few years (and before anyone gives me any derogatory comments about landlords …
if it wasn’t for landlords buying all these buy to let properties over the last
15 years, I am not sure where everyone would be living today – because most the
Council houses were sold off in the 1980’s!).
With the challenges ahead, with the ‘B’ word
(that’s budget if you wondered!), house price inflation will be tempered over
the coming five years in Huddersfield. As I have discussed in previous articles,
the number of properties on the market in Huddersfield remains close to historic
lows, which is both good as it keeps houses prices relatively stable, yet not
so good as it impedes choice for buyers… and hence why I believe property
values in Huddersfield will only be 16% higher in five years’ time.
Whilst on the other side of the coin, with the
challenges facing landlords and the significant shortage of new homes being
built, Huddersfield people still need somewhere to live. If those people aren’t
buying houses and the local authority aren’t building council houses in there
thousands (because they have no money), with the average rent for a Huddersfield
rental property currently standing at £763 per month …
Over the
next five years, I predict the average rent
in Huddersfield
will rise to £931 per month
These are interesting times. There is still
money to be made in buy to let in Huddersfield – Huddersfield landlords will just
need to be smarter and more savvy with their investments. If you are looking
for such advice and opinion to help you meet those investment goals, one place
you can find more information is the Huddersfield Property Blog https://huddersfieldproperty.blogspot.co.uk/
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