2.7% drop in Essex and Chelmsford Property Transactions

In this post credit crunch world of sub terrain low interest and annuity rates so low a limbo dancer would smart, the growth of buy to let since 2009 has been phenomenal. So much so, there has been an evolution in purchase of property in the UK from that of just buying the roof over one’s head to that of a buy to let investment where it is seen as a standalone financial asset to fund current and future (ie pensions) investment. So recently, a few days before the release of latest Land Registry data of property transactions, quite a few market commentators were anticipating a huge increase in the number of properties sold in January as the 1^st of April 2016 stamp duty deadline got closer.   

Looking at the most recent set of data from The Land Registry, it seems there has been a drop in the number of completed property sales in the Essex County Council area. Year on year, completed property sales in January (the latest set of data released) fell by 2.7% to 1,690 compared with 1,737 in January 2015. Nationally, the number is similar, as the number of completed house sales fell by 5% in January 2016 compared with January 2015. Some might say this counters the reports that there was a rush by landlords to buy ‘buy to let’ property ahead of the 1^st April 2016 deadline but where was the stampede that many expected?

Looking even closer to home, in the CM1 postcode in January 2016, 77 properties changed hands, whilst 89 properties did so in January 2015. It’s even more interesting when you look at the average price paid, in January 2016, it was £338,954 yet in January 2015, the average price paid was £298,457.

Is the buy to let dream over for Chelmsford landlords?

.. but as ever my Chelmsford Property Blog readers, the devil is in the detail. The 3% stamp duty surcharge for buy to let landlords was announced in the Autumn Statement on the 25^th November 2015. Anyone who has bought a property knows from their offer being accepted to receiving the keys and monies paid is a long drawn out affair, taking on average 8 to 12 weeks, as the Land Registry only get notified upon completion of the sale. We also need to factor in that Solicitors seem to have the last two weeks of December off anyway.

So if there was a rush in the last few days of November/early December in the Chelmsford property market, we would only see the results of that in the February figures (released in June) and more probably March’s (released in July).

So why all the doom and gloom? Simple .. bad news sells newspapers and gets the headlines. Let’s be honest, the headline to this article is designed to be eye catching. However, when we look at both the bigger and smaller picture; nationally, property values dropped (month on month) by 0.5%; in the East region they rose 0.2%, whilst in Essex they rose by 0.4%. The year on year figures tell a completely different story to that.

It just goes to show you should look deeper into something before making a judgment! For more thought provoking commentary on the Chelmsford property market – please visit the Chelmsford Property Blog  www.chelmsfordpropertyblog.co.uk

Chelmer Village apartment, with some great potential as a buy to let

Happy Wednesday everyone, my next deals is commin' atcha, have a look and see what you think. Todays' property is in Chelmer Village, Chelmsford and is a 2 bed apartment that has just come to the market with Owen Lyons, it's got some great potential.

http://www.rightmove.co.uk/property-for-sale/property-55022803.html

Great 3 bed house in Chelmsford

Hello everyone, check out todays' deal and see what you think, it's a 3 bed house on the Tile Kiln development in Chelmsford. It's just come to the market with Hamilton Piers, so don't delay, give them a call!

http://www.rightmove.co.uk/property-for-sale/property-42794274.html

See if this apartment in Chelmsford meets your investment needs...

Hello, another week has flown by, before we know it, it'll be Christmas! There, I've said it, can't take it back now!

Anyway, back to business, check out my video below for the details of my latest pick of the bunch to see what you think of this 2 bed apartment in Chelmsford. 

http://www.rightmove.co.uk/property-for-sale/property-41953440.html

Asking Prices of Chelmsford Property up 14% since December

I had an interesting question the other day from a homeowner in Chelmer Village who asked me the difference between asking prices and values and why it mattered. When it comes to selling property, there must be agreement between the purchaser (buyer) and seller (vendor) for a property sale to take place. The value a buyer applies to a property can massively differ from the value a seller or mortgage company places upon it. The seller, the buyer and the mortgage company must find an agreeable value to assign to a property so the sale can proceed.

In many of my articles about the Chelmsford property market, I talk about values, i.e. what property in Chelmsford actually sells for, but I haven’t spoken about asking prices for while. Now asking prices are important as they are one of the four key matters a potential buyer will judge your property on (the others being location, bedrooms and type). Price yourself too high and you will put off buyers. So let’s take a look at the Chelmsford numbers.

Over the last 12 months asking prices (i.e. the price advertised in the paper and on Rightmove) in Chelmsford have increased by 33%, taking the average asking price in Chelmsford to £431,300 (up from £323,300 twelve months ago).

Interestingly though, when we look at, say semi-detached and terraced property, a slightly different picture appears. Twelve months ago, the average asking price for a semi-detached house in Chelmsford was £325,600 and today its £371,200 (a rise of 14%); whilst over the same 12-month period, the average asking price of a terraced property was £291,100 a year ago, and today its £319,700 (a rise of 10%).

However, my research shows that the supply of property for sale in Chelmsford is beginning to increase. In December 2015, there were 389 on the market in Chelmsford today there are 508 properties on the market (up 31%). This will mean homeowners looking to sell will need to be conscious of how their property compares against others on the Chelmsford property market. The Chelmsford property market still has substantial momentum and sufficient demand remains to provoke more modest asking price rises. This noteworthy increase in supply since Christmas is currently providing more choice for buyers and is tempering asking price rises - and here is the devil in the detail - only 14% of the overall 33% annual figure (mentioned in para 3) has appeared since December.

… And here is the second point to make. Asking prices are one thing, but what a property sells for (i.e. value) is a completely different matter. These are the average prices achieved (i.e. what they sold for or the average value) for property in Chelmsford over the last 12 months...

·         Overall Average          £316,800

·         Semi-detached            £314,200

·         Terraced                     £273,600

You can quite clearly see, there is a difference between what people are asking for property and what it is selling for. The underlying fundamentals of low interest mortgages and tight supply remain prevalent in the Chelmsford property market however, the number one lesson has to be this ... if you want to sell, be realistic with your pricing.

Lovely Buy To Let deal in Chelmsford...

Hello everyone, I hope you are enjouying the sunshine today! I've grapped a couple of minutes to talk to you about my latest deal of the day on Tugby Place in Chelmsford. It's not long been on the market with William H Brown. Have a watch and see what you think.

http://www.rightmove.co.uk/property-for-sale/property-60328667.html

Great apartment in Springfield, Chelmsford for buy to let...

Hi there, I hope everyone had a nice weekend. I've got a lovely apartment that I wanted to point out for you today, it's a 2 bedroom apartment in Chelmsford, just come to the market with The Home Partnership, on Cornflower Drive, Springfield. A great spot for tenants, the properties are cheaper here than in town and they rent just as quickly. 

http://www.rightmove.co.uk/property-for-sale/property-60383162.html

This one has just come to market with a price of £164,995, it has an extended lease, 145 years remaining, which is great and also being an older property, the service charges are quite reasonable at only £90 per month. 

From a rental perspective, you are looking at a rental figure on the region of £750, given the condition of this particular property, which means, you could be looking at a potential return of 5.4% for the year! Not too shabby!!

If you would like some advice about this particular propert,y or any other proprty for that fact, by all means, get in touch and I'm happy to help .