With 7,376 people in Private Rented Properties in Bexhill – Should you still be investing in Bexhill Buy-To-Let?

If I were a buy-to-let landlord in Bexhill today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy-to-let. To add insult to injury, Brexit has caused a tempering of the Bexhill property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Bexhill property prices do drop, the downside to that is that first time buyers could be attracted back into the Bexhill property market; meaning less demand for renting which means meaning achieved rents could go down.

Yet, before we all run for the hills, all these things could be serendipitous to every Bexhill landlord, almost a blessing in disguise.

Bexhill has a population of 41,203, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Bexhill – Accommodation Type and the Number of Occupiers
Owned outright – Bexhill Owned with a mortgage – Bexhill Shared ownership (part owned and part rented) – Bexhill Social rented (aka Council Housing) –  Bexhill Private rented – Bexhill Living rent free – Bexhill
15,839 13,447 223 3,960 7,376 358
38.4% 32.6% 0.5% 9.6% 17.9% 0.9%

Yields will rise if Bexhill property prices fall, which will also make it easier to obtain a buy-to-let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Bexhill landlords add to their portfolio. Rental demand in Bexhill is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Bexhill landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s nephew and his partner.  Both are in their mid/late twenties, both have decent jobs in Bexhill and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a home owner and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 17.9% of Bexhill people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Bexhill – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch – there is nothing like bricks and mortar!

For more views and opinions on the Bexhill Property Market – visit the Bexhill Property Market Blog at www.bexhillpropertyblog.com

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Bexhill Unemployment Drops to 4.2% and its effect on the Bexhill Property Market

It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, eight months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is yes and no.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Bexhill are 0.23% down month on month (and the month before that, they had barely grown with an increase of only 0.63%) – so is this the time to panic and run for the hills?

Doom and Gloom then? Well, let me consider the other side of the coin.

Continue reading “Bexhill Unemployment Drops to 4.2% and its effect on the Bexhill Property Market”

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