What does that mean for local Landlords and Homeowners?
The balancing act of being an Ashford Buy To Let landlord is something many do well at. Talking to numerous Ashford landlords, they are very conscious of their tenants’ capacity to pay the rent against their own need to raise rents on their rental properties. Despite the perceived ‘dark clouds’ of Brexit, evidence suggests many landlords feel more confident than they were in the Summer and Autumn of 2018 about pushing rents higher on their Ashford Buy To Let properties.
Looking at the data for the last 7 years, this shows that throughout the Summer months, the rents new tenants have had to pay on move in have increased at a higher rate than during the colder months of Winter. This is because the Summer months are normally a time when renters like to move, meaning demand increases for rental properties yet supply remains pretty rigid.
Yet the recent winter’s stats buck that trend and this is great news.
Average rents in Ashford, for new tenants moving in, have risen 2.4% for the month, taking overall annual Ashford’s rents 2.7% higher for the year
However, several Ashford landlords have expressed their apprehension about a slowing of the housing market in Ashford although I believe, based on this new evidence, they may be overstated.
Before we get the bubbly out though, the other part of investing in property is what is happening to capital values (which will also be of interest to all the Ashford homeowners as well as the Ashford’s Buy To let landlords). I believe the Ashford property market has been trying to find some form of balance since the New Year. According to the Land Registry….
Property Values in Ashford are 6.6% higher than they were 12 months ago
Yet, these figures reflect the sales of Ashford properties that took place in the Autumn of 2018 and now are only exchanged and completed during the New Year / early Spring months of this year.
The reality is the number of properties that are on the market in Ashford today has risen by 2% since the Autumn
and that will have a dampening effect on the property market. As tenants have had less choice, buyers now have more choice – and that will temper Ashford property prices as we head into the middle of 2019.
To all the Ashford property owners that aren’t planning to sell though – this talk of price changes is only a paper profit or loss. To those that are moving .. most people that sell are buyers too, so, whilst you might not get as much for yours, the one you will want to buy won’t be as much either. Look at the deal as a whole, the difference between what you sell yours for and what you buy at.