Category Archives: Doncaster

Doncaster Property News

Which Doncaster Properties are Selling the Best?

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Moving home is said to be the third most stressful life event, following a member of your family dying or getting divorced. So it is always best to keep your stress levels down by investigating and doing your homework on both the particular area of Doncaster (or nearby conurbations) where you live (i.e. where you are selling) and where you want to search for your next Doncaster home. Being mindful of how fast (or slow) the different aspects of the Doncaster property market is moving is key.. because it could save you much heartache and many thousands of pounds.

You see, if you know you are selling a property in a sluggish price range and buying in a faster moving price range in Doncaster then putting your property on the market first is vital, otherwise you will always find the one you want to buy tends to sell before your property sells – there is nothing worse than pondering over a property only to find that someone else has bought it. Being primed with all the knowledge is key. On the other side of the coin, if you are selling in a fast moving market and buying in a sluggish market .. you can probably get a better deal on the one you are buying.

For buy to let landlords in Doncaster, this evidence is particularly critical as purchasing a high-demand property in a well-liked area of Doncaster will safeguard a surfeit of availability of tenants, as well as respectable house price growth.

Being an agent in Doncaster, I like to keep an eye on the Doncaster property market on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Doncaster; be that a buy to let property for a landlord or an owner occupier house.  So, I thought, how could I scientifically split the Doncaster housing market into sections, so I could analyse which part of the Doncaster property market was doing the best (or the worst).

I took the decision that the preeminent way was to fragment the Doncaster property market into roughly four uniform size price bands (in terms of properties for sale). Each price band would have roughly around 25% of the property in Doncaster available for sale .. then add up all the sold (stc) properties and see which sector of the Doncaster property market was performing best? … And these were the results ..

  # Properties For Sale # Properties Sold (stc)
up to £90,000 469 307
£90,000 to £140,000 569 426
£140,000 to £230,000 554 487
£230,000 upwards 469 172

The best performing price range in Doncaster is the middle to upper market £140,000 to £230,000 where 46.8% of all property in that price range has a buyer and is sold stc.

It’s not unexpected that the upper end of the property market (the top 25%) in Doncaster is finding things a little tougher compared to the others. Remarkably for Doncaster landlords, the lower market is doing reasonably well, but it’s not the best, so maybe there could be some property deals out there for buy to let investment? Even though the number of first time buyers in 2018 did increase over the 2017 levels, it was from a low starting point and the large majority of 20 to 30yo’s don’t want to or can’t buy their first home and the local authority has no money to build Council houses meaning an increase in demand as private landlords take up the slack – because everyone needs a roof over their head!

If you would like to pick my brains on the Doncaster Property Market – pop in for a coffee or drop me a line on social media or email.

Doncaster Property News

What Has Happened to the Doncaster Property Market Since the Last Property Market Crash?

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A handful of Doncaster landlords and homeowners have been asking me what would happen if we had another property crash like we did in 2008/9?

The UK property crash in 2008/9 caused property prices in the UK to drop by an average of 18.37% in a period of 16 months.

On the run up to the Parliamentary vote on Brexit scheduled for March, a number of people asked what a no-deal Brexit would do to the property market and if there would be a crash as a result. I have discussed in a previous article on the chances of that (slim but always a possibility) … but assuming it happens, it is my opinion the outcome of a no-deal Brexit would be no worse than the country’s 2008/9 credit crunch property crash, the late 1988 property crash, the 1974 property crash, 1951 property crash … I could go on. The British economy would bounce back from the shock of a no-deal Brexit with lower property values and a continued low interest rate environment (together with an additional round of Quantitative Easing) and that would mean we would see a similar bounce back as savvy buyers saw it as a fantastic buying opportunity.

So, let me explain the reasons I believe this…

Many said after the Brexit vote in June 2016, we were due a property crash – but we all know what happened afterwards.

Initially, let’s see what would happen if we did have a crash, how quickly it would bounce back and then finally discuss how the chances of a crash are actually quite minimal.

Therefore, to start, I have initially split down the types of property in Doncaster (Det/Semi etc.) and in the red column put the average value of that Doncaster property type in 2009. Next in the orange column what those average values are today in 2019.

Doncaster Property Market

The likely effects of a Property Crash and Recovery

  Average Value in 2009 Average Value in 2019 Assumed Average Value by Q2 2020  (if Property Crash) Assumed Value in 2024/5
Detached £178,200 £255,200 £208,300 £253,300
Semi Detached £98,600 £130,900 £106,900 £124,400
Terraced £75,000 £99,800 £81,500 £95,000
Apartment £88,300 £114,900 £93,800 £107,900

Now, assuming we had a property crash like we did in 2008, when average property values dropped nationally by 18.37%, I applied a similar drop to the current 2019 Doncaster figures (i.e. the green column) to see what would happen to property values by the middle 2020 (because the last crash only took 13/14 months).

…and finally, what would subsequently happen to those same property prices if we had a repeat of the 2009 to 2014 property market bounce back.

Of course, these are all assumptions and we can’t factor in such things as China going pop on all its debt … yet either way, the chance of such a crash coming from internal UK factors are much slimmer than in another of the four property crashes we have experienced in the last 80 years. Why, you might ask?

The seven reasons I believe are these …

  1. The new Bank of England mortgage rules on lending 2014 to stop reckless lending that fuelled that last crash.
  2. Low inflation.
  3. Low mortgage rates (the average Brit’s fixed rate mortgage is currently 2.26% and the variable rate mortgage of 3.07%).
  4. Wage rises are forecast to continue to outgrow inflation.
  5. Unemployment figures dropping to 4% (down from 8.4% in 2011).
  6. The high percentage (67.7%) of all British mortgages being on a fixed rate.
  7. And notwithstanding the distractions of Brexit over the last few years, it cannot be denied that the British economy has slowly and steadily been heading in the right direction for a number of years, built on some decent foundations of a steady housing market (unlike the 1988 and 2008 crashes when the housing market got overheated very quickly on the run up to the crashes).

So as the circumstances are much different to the last two crashes, the chances of a crash are much slimmer. Yet if we do have a crash, for the very same 7 reasons above why the chances of a crash are unlikely, those 7 reasons would definitely contribute to making the ensuing recession neither too long nor substantial in scale.

One final thought for the homeowners of Doncaster. Most people when they move home, move up market, meaning in a decreasing market you will actually be the winner, as a 10% drop on yours would be much smaller in £notes than a 10% drop on a bigger property … think about it.

One final thought for the new and existing buy to let landlords of Doncaster. Well, the questions I seem to be asked on an almost daily basis by landlords are: –

  • “Should I sell my property in Doncaster?”
  • “Is the time right to buy another buy to let property in Doncaster and if not Doncaster, where?”
  • “Are there any property bargains out there in Doncaster to be had?”

Many other Doncaster landlords, who are with us and many who are with other Doncaster letting agents, all like to pop in for a coffee, pick up the phone or email us to discuss the Doncaster property market, how Doncaster compares with its closest rivals (Rotherham, Scunthorpe and Pontefract), and hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight-talking opinion. I look forward to hearing from you.

Doncaster Property News

Home Ownership among Doncaster young people has dropped by more than a third in 20 years

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The proportion of 25 to 34-year olds who own their home in Doncaster has dropped by more than a third in the last 20 years, so what does this mean for all the existing Doncaster landlords and homeowners together with all those youngsters considering buying their first home?

Well, looking at the numbers in greater detail, in Doncaster there has been a 36.0% proportional drop in the number of 25 to 34-year olds owning their own home between 1999 and 2019 .. and a corresponding, yet smaller drop of 18.1% of 35 to 44-year olds owning their own home over the same time frame.

So, if you were born in the late 1980’s or early 1990’s, the dream of owning a home in Doncaster has reduced dramatically over the past 20 years as young adults’ wages and salaries are now much lower in relation to Doncaster house prices. Nationally, average property values have grown by 186.9%, whilst average incomes have only risen by 44.8%, yet that doesn’t allow for inflation. However, whilst not over the same 20 years (it’s close enough though), the Institute of Fiscal Studies said recently the average British home was just over 2.5 times higher in 2015/6 than in 1995/6 after allowing for inflation; yet the average household income (after tax) of 25 to 34-year olds grew by only 22% in ‘real-terms’ over those 20 years.

Yet, even though property prices are at record highs, on the other side of the coin, the monthly cost of mortgage payments has actually fallen because interest rates have remained low. In 1999, the average mortgage rate paid by UK homeowners was 6.54% whilst today it’s more than halved to 2.64% – a drop of 59.4%. Many of you reading this will remember the 15% mortgage rates of 1992!

The fact is, mortgage repayments take up a considerably smaller proportion of take home pay, on average, than they did before the Credit Crunch or in the late 1980’s. Although the risk that mortgage rates will increase if the Bank of England put up interest rates might leave some homeowners in a difficult position – hence I might suggest (if you haven’t already) you seriously consider fixing your mortgage rate (remember to take advice from a professional before you do).

Yet look at the data in even greater detail and you will see, going back

to the 1960’s, we weren’t always the huge homeowning nation we always thought we were.

Today, 18.4% more 35 to 44-year olds and 51.3% more 45 to 54-year olds own their own home compared to 1969, and if you look at the graph, move the clock back to the early 1960’s and you will see the numbers are even starker. So as the younger generation in Doncaster has seen homeownership drop in the medium term, they will in fact end up inheriting the homes of their parents. We are turning into a more European (especially German) model of homeownership, where people buy their first home in their 50’s instead of their 20’s.

My message to first time buyers of Doncaster is go and get some mortgage advice!  The cost of renting smaller starter homes is between 20% and 25% more than the mortgage payments would be. 95% mortgages (meaning a 5% deposit is required) have been available since late 2009 and some banks even do 100% mortgages (i.e. no deposit) .. I suggest that you don’t assume you can’t get a mortgage – for the sake of a 45 minute chat with a mortgage adviser – you get a straight answer and all the information you need.

Therefore, what does this mean for homeowners and landlords of Doncaster? Well, for many tenants, renting is a positive choice and as we aren’t building enough homes to meet current demand, let alone eating into the lack of building over the last 35 years, demand will outstrip supply, home values will, over the medium to long term, rise above inflation – meaning it will be a good overall investment as demand for rental properties increases. Good news for Doncaster landlords and Doncaster homeowners alike.

The single biggest issue in the Country (and Doncaster) today is that we aren’t building enough homes. I know it seems the local area is covered with building sites – yet looking at the actual numbers – we still aren’t building enough homes to live in. Residential property only takes up 1.2% of all the land in the Country – and whilst I’m not suggesting we build housing estates on National Trust land or cut down forests, until we realize that we aren’t building enough .. this issue will only continue to get worse.

Homeownership in Doncaster by Age – 1969 to today

 

25-34 35-44 45-54 55-64 65+
1969 47.2% 47.0% 47.5% 46.6% 44.0%
1979 56.0% 63.3% 51.6% 55.4% 42.8%
1989 53.7% 74.6% 76.8% 71.5% 51.0%
1999 54.3% 73.1% 78.0% 77.2% 67.3%
2009 40.8% 64.6% 75.1% 76.3% 75.5%
2019 31.6% 58.2% 69.7% 74.1% 73.6%
Doncaster Property News

Doncaster Property Market vs London Property Market

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Anyone would think that national news, especially when it comes to talking about the property market, is just focused on London centric. In fact, over the last 5 years, the London property market has really manipulated the UK on averages to such an extent that many lenders like the Halifax and Nationwide publish two indices, a national one without London and one with.

Now it’s true the London property market has undergone some quite acute property price falls. In the upmarket areas of Mayfair and Kensington, the Land Registry have reported values are 11.3% lower than a year ago, yet in the UK as a whole they are 1.3% higher. Yet look around the different areas and regions of the UK and Northern Ireland, property values are up 5.8% year on year, whilst over the same time frame, the East Midlands is 3.9% up and Yorkshire is 3.7% up. So, what exactly is happening locally in Doncaster and what should Doncaster landlords and homeowners really be concerned about?

Well, to start with, as I have been saying for a while now, property is a long game, and making decisions on the short-term fluctuations is something that could cause a nervous breakdown.

I wanted to look at how Doncaster had performed over the long term, when compared to London and the UK as a whole.  Yet it is hard to compare differing locations when the average value of a property in Doncaster differs greatly to one in the capital.  I decided if I wanted to compare like for like, I needed to see what would happen if I had spent £100 on property in London in 1979 and what would that £100 be worth today, and then do the same exercise for the UK. So, looking over the last 40 years …

Anyone would think that national news, especially when it comes to talking about the property market, is just focused on London centric. In fact, over the last 5 years, the London property market has really manipulated the UK on averages to such an extent that many lenders like the Halifax and Nationwide publish two indices, a national one without London and one with.

Now it’s true the London property market has undergone some quite acute property price falls. In the upmarket areas of Mayfair and Kensington, the Land Registry have reported values are 11.3% lower than a year ago, yet in the UK as a whole they are 1.3% higher. Yet look around the different areas and regions of the UK and Northern Ireland, property values are up 5.8% year on year, whilst over the same time frame, the East Midlands is 3.9% up and Yorkshire is 3.7% up. So, what exactly is happening locally in Doncaster and what should Doncaster landlords and homeowners really be concerned about?

Well, to start with, as I have been saying for a while now, property is a long game, and making decisions on the short-term fluctuations is something that could cause a nervous breakdown.

I wanted to look at how Doncaster had performed over the long term, when compared to London and the UK as a whole.  Yet it is hard to compare differing locations when the average value of a property in Doncaster differs greatly to one in the capital.  I decided if I wanted to compare like for like, I needed to see what would happen if I had spent £100 on property in London in 1979 and what would that £100 be worth today, and then do the same exercise for the UK. So, looking over the last 40 years …

So, what does all this mean for Doncaster

homeowners and landlords?

Well what happens in London does have an impact, but there are other issues that will have a bigger impact on the local property market. The simple fact is over the last 40 years, we have had 392.9% inflation, yet looking at a typical Doncaster terraced house,

A Doncaster terraced house has jumped in

value from an average of £9,257 to £99,600

since 1979 – a rise of 654.2%

Property has in the long term been a good bet. Yes, we might have some short-term blips and as long as you play the long game – you will always win. In the short term, my concern isn’t over monthly up or down property values, Brexit or another General Election. With property values still rising faster than salaries in many parts of the country, what really matters is how much of householder’s take home pay goes into housing costs as opposed to other spending items. If housing gets too expensive – other things will suffer, like holidays and the nice things in life to spend your money on. Only time will tell!

P.S. Wonder what that Doncaster terraced would be worth if it had gone by London house prices? Here’s your answer – £144,957.

Doncaster Property News

As 34.9% of Doncaster Property on the Market is Sold

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Are there any bargains because of Brexit?

Bargains – well yes and no – and let me explain why. To find a bargain you need to know the ‘market’, yet there is not one ‘property market’ in the UK. In fact, the British property market is like a fly’s eye, it looks one whole but in fact it is split into lots of fragmented pieces and the same goes for the Doncaster property market as that too is split into different patches… in fact it can even come down to two streets adjacent to each other, one street selling like hot cakes for top dollar whilst the next street can stick and at comparatively lower prices (i.e. if there is a school catchment boundary or differing postcode).

According to Coutts, property values in ‘Prime London’ have dropped by 14.7% in the last 5 years … yet look closely at those stats and Prime London is considered anything within a 1,500m radius of Kensington High Street above £4.6m – a totally different world to the average property in Doncaster, which is worth just under £160,000 and has risen in value over those same 5 years by 20.4%  .. a different world!

I have noticed that the top end of the market above £500,000 in Doncaster and the surrounding areas is proving a little tougher to shift than a few years ago, yet this can’t all be blamed on Brexit, as buyers have long been flinching at overestimated asking prices and excessive stamp duty rates.

In Doncaster, 17.4% of properties for sale have

reduced their asking price in the last 3 months by

an average of 5.9%

A lot less than the reductions that are being seen in central London. In fact, the property market in Doncaster is looking reasonably good with

34.9% of properties on the market in Doncaster being

shown as under offer and Sold subject to contract

…Interesting when compared with the aforementioned London Prime market where only 5.86% of the properties for sale are sold .. some bargains to be had there!

So, where are the bargains in Doncaster? Well, to start with, it’s all about knowing the local Doncaster market. It’s all about comparing and contrasting property, so to start with, check out the property web-portals such as Zoopla and Rightmove to see what’s for sale. The art here is to click on the ‘include Sold stc’ in the filters .. then arrange them in price order. Then you will get a feel for what properties are roughly selling for. Also look at recent sales, so in Rightmove click on ‘House Prices’ on the main menu, on the proceeding drop down menu click on ‘Find Sold House prices’ and now you can type in a street, or even a street plus 0.25miles/0.5miles .. click on ‘List View’ and they are in date order. There is a similar function in Zoopla (feel free to contact me if you need a hand with that).

Then once you have found what you think is a bargain .. view it. Ask the agent why the sellers are moving.  By doing your research on the seller, seeing how long it has been on the market, whether they have reduced the asking price (if you ask an agent they have to tell you and by how much)  — you could cut a better deal if they are compelled to sell. Push home your advantage i.e. if you are a first-time buyer, don’t have a property to sell, chain free or cash purchaser it can all make a difference.

Looking at the numbers above, some savvy Doncaster landlords and home buyers are taking advantage of the doom and gloom newspaper headlines as property owners’ expectations are probably at the lowest they have ever been since the Credit Crunch, especially if they are in the ‘got to sell’ category instead of the ‘would like to sell’ category.

Like anything in life .. buying a property bargain comes down to putting the hard-work in, doing your homework and jumping at opportunities.

Doncaster Property News

How Did Brexit Affect the Doncaster Property Market in 2018 – and its Future for 2019?

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A few weeks ago, I suggested property values in Doncaster would be between -0.4% and 0.6% different by the end of the year. It might surprise some people that Brexit hasn’t had the effect on the Doncaster property market that most feared at the start of 2018.

The basis of this point of view can clearly be seen in the number of property transactions (i.e. the number of property sold) that have taken place locally since 2008. The most recent property recession was the Credit Crunch years of 2008/2009/2010.

In property recessions, the headline most people look at is the average value of property. Yet, as most people that sell also go on to buy, for most home movers, if your property has gone down in value, the one you want to buy has also gone down in value so you are no better or worse off. If you are moving up market – which most people do when they move home – in a repressed market, the gap between what yours is worth and what you will buy gets lower … meaning you will be better off.

Yet, most property commentators, including myself, suggest (and I have mentioned this before in some of my other blog articles) a better measure of the health of the property market is the transaction numbers (i.e. the number of people selling and buying). So, I decided to look at the 2018 statistics, and compare them with the Credit Crunch years (2008 to 2010) and the boom years (2014 to 2017). The results can be seen in the table below.

The Average Number of Properties Sold Per Month Over the Last 10 Years in Doncaster
2008 to 2010 2014 to 2017 2018
Jan 195 264 297
Feb 218 289 277
March 248 411 384
April 223 307 358
May 249 346 373
June 266 429 424
July 266 396 327
Aug 224 387 400
Sept 212 361 312
Oct 232 392 385
Nov 220 374 396
Dec 258 442 420

Then, I looked at the average quarterly figures for those chosen date ranges … and created this graph …

In that 2008 to 2010 property Credit Crunch recession, the average number of properties sold in the Doncaster area were 234 per month. Interesting when we compare that to the boom years of 2014 to 2017, when an average of 366 properties changed hands monthly … yet in the ‘supposed’ doom laden year of 2018, an impressive average of 363 properties changed hands monthly … meaning 2018 compared to the boom years of 2014 to 2017 saw a drop of 1.0% – yet still 54.9% higher than the Credit Crunch years of 2008 to 2010.

The simple fact is, the fundamental problems of the Doncaster property market are that there haven’t been enough new homes being built since the 1980’s (and I don’t say that lightly with all the new homes sites dotted around the locality). Also, the cost of buying your first home remaining relatively high compared to wages and to add insult to injury, all those issues are armor-plated by the tougher mortgage rules which were introduced in 2014 and the current mortgage market conditions.

It is these issues which will ultimately determine and form the rather unexciting, yet still vital, long term outlook for the Doncaster (and national) housing market, as I feel the Brexit issue over the last few years has been the ‘current passing diversion’ for us to worry about. Assuming something can be sorted with Brexit, in the long term property values in Doncaster will be constrained by earnings increases with long term house price rises of no more than 2.5% to 4% a year.

Fundamentally, the question I am asked by many Doncaster buy to let landlords and Doncaster homebuyers is … “should I wait to buy or not?”

As a Doncaster homebuyer, one shouldn’t be thinking of what is happening in Westminster, Brussels, Irish Backstop, China or Trump and more of your own personal circumstances. Do you want to move to get your child in ‘that’ school or do you need an extra bedroom for your third child? For lots of people, the response is a resounding yes – and in fact, I feel many people have held back, so once we know what is finally happening with Brexit and the future of it, there could a be a release of that pent-up demand to move home as people humbly just want to get on with their lives.

There is little to be lost in postponing a house purchase until there is better clarity on the situation. If it isn’t Brexit it will something else – so just get on with your lives and start living. We got through the global financial crisis/Credit Crunch in ‘08/’09, Black Wednesday in ’92 where mortgage interest rates went from 8.5% to 15% in one day, we got through the worst stock market crash with Black Monday in ’87, hyperinflation, power shortages, petrol quadrupling in price in less than a year and a 3 day week in the ‘70’s … need I go on?

Doncaster Landlords? Well, where else are you going to invest your money? Like I said earlier in the article, we aren’t building enough homes to keep up with demand … so as demand outstrips supply, house values will continue to grow. Putting the money in the building society will only get you 1% to 2% if you are lucky. In the short term though, there could be some bargains to be had from shortsighted panicking sellers and in the long term … well, the same reasons I gave to homeowners also apply to you.

Doncaster Property News

Doncaster House Prices up 20.4% in the last 5 Years

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Over the last 5 years, we have seen some interesting subtle changes to the Doncaster property market as buying patterns of landlords have changed ever so slightly.

The background to this story was the recently published set of buy-to-let (BTL) lending statistics. Roll the clock back 12 months and 6,700 BTL mortgages were granted (in the same month) for £900m, meaning the average BTL mortgage was £134,200. Looking at last month’s figures, and as one might expect with the Brexit issue overhanging the property market, the lending figures were down, yet not by the amount I originally thought. Last month, just over 6,100 new buy-to-let mortgages were granted for a total sum of £800m (meaning the average landlord mortgage was a respectable £131,100). Yet, when I looked back to the boom year of the 2014 property market, in the corresponding same month, only £1,030 million was borrowed on 8,300 buy-to-let properties (meaning the average buy-to-let mortgage was £124,100). It seems Brexit is having no effect on landlords buying habits.

Looking closer to home in Doncaster, throughout 2018, I have been regularly chatting to more and more landlords, be they seasoned professional Doncaster BTL landlords or FTL’s (first time landlords) and their attitude is mostly positive. Instead of reading the scare-papers (oops sorry newspapers), those Doncaster landlords that look with their eyes, will see the Doncaster property market is doing reasonably well, with medium term rents and property values rising; as quite obviously from the mortgage figures .. landlords are still buying.

The question I get asked all the time is .. “What type of buy-to-let property should I buy?  You can make money from property through both the rent (expressed as a yield when compared to the value of the property) and how the actual value of the home itself changes.

Since 2014, property values in Doncaster have risen by 20.4%.

We have records of what each type of property (i.e. Detached/Semi/Terraced/Apartments) has achieved per square metre going back 20 years … and looking back over the last 5 years, these are the numbers ..

2014 Doncaster Average Value £/Sq.M Current Doncaster Average Value £/Sq.M
Detached £1,496 £1,781
Semi Detached £1,238 £1,508
Terraced £1,059 £1,288
Apartments £1,468 £1,729

 

They all look to have similar percentage uplifts, however as you can see from the table there is in fact some variation throughout and although only slight this can equate to thousands of pounds in monetary terms.

Price Changes in Doncaster in Last 5 years by Type
Detached 19.0%
Semi Detached 21.8%
Terraced 21.6%
Apartments 17.7%
Overall Average 20.4%

This has proved that semis and terraced houses have performed the best .. although like the £/Sq.M figures, these are just averages. When investing, whilst Doncaster apartments haven’t been the best performers in terms of capital growth, they do tend to generate a slightly better yield than houses, probably because several sharers can afford to pay more than a single family. But houses tend to appreciate in value more rapidly and may well be easier to sell, simply because there are fewer being built.

Now these are of course averages, but it gives you a good place to start from. The bigger picture here though is this – irrespective of what is happening in the world, be it Brexit/no Brexit, China, Trump, whatever, Doncaster people still need a roof over their heads and we as a Country haven’t built enough homes to keep up with the demand since the late 1980’s. This means even if we have a short term wobble in 2019 when it comes to property values ..in the medium term, demand will always outstrip supply and prices and rents will increase – because, I doubt the local authority, let alone Westminster, have the billions of pounds required to build the one hundred thousand Council houses per year nationally for the next decade to fix this issue – meaning as the population increases, the only people who can fulfil the demand for accommodation in the medium term is the private BTL landlord.

Before I go …on average, housing associations and local authorities have built around 26,500 houses each year since 2010. The Labour government had a lower average, building about 19,000 homes per year, yet in the 1960’s, under both administrations, 180,000 councils were built per year!

Doncaster Property News

ANOTHER DONCASTER BUY TO LET DEAL YOU WON’T WANT TO MISS!

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WATCH as Natalie brings us another buy to let deal of the day, this time on Twigg Crescent, Armthorpe

  • 1 bedroom, cluster house.
  • On the market with Martin & Co, Doncaster – Lettings & Sales
  • Perfect for an investor or first time buyers!
  • In a highly popular location for rentals and first time buyers, only a short distance away from motorway links and five minutes drive from Doncaster town centre.

Click here to view this property – https://www.rightmove.co.uk/property…/property-66994459.html

If you would like some specialist advice from Natalie, you can call her on 07818 007152, email her at natalie@mosspm.co.uk or visit our office located at White Rose Way, Doncaster, DN4 5FT

Doncaster Property News

Press Release : Moss Properties a Proud Member of Land & New Homes Network

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Moss Properties estate agents in Doncaster has been selected by a leading national network which will help it to continue to develop its expertise in the booming land and new homes sector.

The Land and New Homes Network (LNHN) spans the UK and brings the most professional, forward thinking and trusted non-competing estate agents together to offer developers, property investors and home buyers an unparalleled service based on knowledge, experience and integrity.

Moss Properties is now in a very strong position to provide land and development consultancy to clients and a specialised new homes sales service.

Sanjay Gandhi, Director of Moss Properties said: “We were very pleased to be selected as the LNHN’s agent for Doncaster.

“It means we can deliver even better results for our clients.”

“Membership of the LNHN gives us access to national land and new homes experts who will be on hand to advise us when needed.”

“The Government has made addressing the housing shortage a priority so with thousands of new homes needed we’ve been proactive to ensure our clients will benefit from the best advice and coverage available.”

“The network’s national coverage means we have relationships with builders, developers, investors and estate agents from across the UK. This is good for anyone selling land or new homes with us, as it increases the amount of potential buyers enormously.”

“And it means more choice and better quality for local people looking to buy a new home.”

Ian Stratford, Land and New Homes Network’s Managing Director, said: “We are really looking forward to working together with Moss Properties.”

“They are exactly the type of agency we want as part of the network. They were selected for their professionalism, experience and their focus on delivering results for clients.”

If you own land or a property that you think might have development potential please call Sanjay Gandhi, Director on 07533 595 595 for a confidential conversation.

Or if you are interested in buying a new home please contact Frances Bowling on 07896 988 366.

Doncaster Property News

Doncaster Tenant’s Deposits held total £4,537,841

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With the Government preparing to control tenant’s deposits at five weeks rent, Doncaster landlords will soon only be protected in the event of a single month of unpaid rental-arrears, at a time when Universal Credit has seen some rent arrears quadrupling and that’s before you consider damage to the property or solicitor costs.

It can’t be disputed that the deposits Doncaster tenants have to save for, certainly raises the cost of renting, putting another nail in the coffin of the dream of home ownership for many Doncaster renters whilst at the same time, those same deposits being unable to provide Doncaster landlords with a decent level of protection against unpaid rent or damage to the property.

In fact, the total of all the tenants’ deposits in

Doncaster, deposited or protected, is £4,537,841

When you consider the value of all the privately rented properties in Doncaster total £1,314,812,068, the need for decent landlord insurance to ensure you are adequately covered as a Doncaster landlord is vital.

However, I want to consider the point of view of the Doncaster tenant.  Several housing charities believe spending more than a third of someone’s salary on rent as exorbitant, yet for the tenants they find themselves in that very position.  I feel especially sorry for the Doncaster youngsters in their 20’s who want to rent a place for themselves, as they face having to pay out the rent and try and save for a deposit for a home.

The average 22 to 29-year-old in Doncaster spends 26% of their typical salary on a one bed rental property

….and 31% of their salary for a 2-bed home in Doncaster.

40 years ago, British people who rented spent an average of 10% of their salary on rent, and only 14% in London.  Looking in even greater detail, according to the ONS, over the past 60 years the proportion of total spending on all housing (renting and mortgages) has doubled from 9% in the late 1950’s to 18% today.  Whilst on the other hand, the proportion of total expenditure on food has halved (33% to 16%), as has the proportion of total spending on clothing (10% to 5%) … it’s a case of swings and roundabouts!

Yet landlords also face costs that need to be covered from rents including mortgages, landlord insurance (especially the need for the often-inadequate deposits to cover the loss of rent and damage), maintenance and licensing.  In fact, rents in the last 10 years have failed to keep up with UK inflation, so in real terms, landlords are worse off when it comes to their rental returns (although they have gained on the increase in Doncaster property values – but that is only realised when a property sells).

There are a small handful of Doncaster landlords selling some/or all of their rental portfolio as their portfolios become less economically viable with the recent tax changes for buy to let landlords, which will result in fewer properties available to rent.

However, this will reduce the supply and availability of Doncaster rental properties, meaning rents will rise (classic textbook supply and demand), thus landlords return and yields will rise.  Yet, because tenants still can’t afford to save the deposit for a home (as we discussed above) and we are all living longer, the demand for rental properties across Doncaster will continue to grow in the next twenty to thirty years as we turn to more European ways where the norm is to rent rather than buy in the 20’s and 30’s age range. This will mean new buy-to-let landlords will be attracted into the market, buy properties for the rental market in Doncaster and enjoy those higher yields and returns … isn’t it interesting that things mostly always go full circle?