Should you still be investing in Stockport buy to let property?
If I were a buy to let landlord in Stockport today, I might feel a little bruised by the assault made on my wallet after the last 12 months by HM Treasury’s tax changes on buy to let. With 13,852 households in private rented properties in Stockport – is the market now saturated?
To add insult to injury, Brexit has caused a tempering of the Stockport 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. If that does happen, first time buyers could be attracted back into the Stockport property market; meaning less demand for renting and a decrease in average rents.
Yet, before we all run for the hills, all these things could be serendipitous to every Stockport landlord, almost a blessing in disguise.
Stockport has 163,873 household, so when I looked at the number of people who lived in private rented accommodation, the numbers don’t astound me as they are still relatively low …
Yields will rise if Stockport 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 level off or come down, that could help Stockport landlords add to their portfolio. Rental demand in Stockport is expected to stay solid and may even see an improvement if uncertainty is protracted.
However, there is something even more important that Stockport landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.
I got chatting with my niece and her partner at a family get together. Both are in their mid/late twenties, both have decent jobs in Stockport 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 and the answer surprised me.
They don’t want to put cash into property, as they would rather spend it on living and socialising –going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and 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 11.4% of Stockport 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 Stockport – 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!
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 [email protected] or call on 0161 257 2441. If you are in the area, feel free to pop into the office – we are based on 20 Bramhall Lane, Stockport, SK2 6HR. There is plenty of free parking and the kettle is always on.