Wednesday, 15 February 2017

With 12,552 people in Private Rented Properties in Loughborough - Should you still be investing in Loughborough Buy To Let?


If I were a buy to let landlord in Loughborough 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 Loughborough 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 Loughborough property prices do drop, the downside to that is that first time buyers could be attracted back into the Loughborough property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Loughborough landlord, almost a blessing in disguise.

Loughborough has a population of 53,792, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …


Loughborough - Accommodation Type and the Number of Occupiers
Owned outright - Loughborough
Owned with a mortgage - Loughborough
Shared ownership (part owned and part rented) - Loughborough
Social rented (aka Council Housing) -  Loughborough
Private rented - Loughborough
Living rent free - Loughborough
12,959
18,632
382
8,760
12,552
507
24.1%
34.6%
0.7%
16.3%
23.3%
0.9%



Yields will rise if Loughborough 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 Loughborough landlords add to their portfolio. Rental demand in Loughborough is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Loughborough landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

People in their mid/late twenties, with decent jobs in Loughborough (and generally in the UK) are renting property. They plan to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. The reasons for this? 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. I was quite taken aback that buying a house is just not top of the list for these youngsters but this is great news for the rental market.






So, as 23.3% of Loughborough 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 Loughborough – 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 would like to discuss the Loughborough property market or chat about any potential investment please feel free to call me on 01509 260777 or email me james.loughborough@belvoir.co.uk

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