Friday, 26 September 2014

Property Values along A26

In a previous article I said that average property values in Royal Tunbridge Wells had risen by £18,700, taking the average Royal Tunbridge Wells property to £399,900 ( a rise of 4.9% over 12 months). This is great news for anyone who owns their own home in the Royal Tunbridge Wells. 
However, the A26 has other towns along its length and as a landlord one must consider other towns to invest in. If you go North out of Royal Tunbridge Wells along the A26 the first town we get to is our sister town of Tonbridge, this town has seen an increase in property values by around £28,700 over the last 12 months, taking an average property up in value by 7.8% to £395,000.  Going further North, we get to Maidstone which has also seen some modest property value increases, taking the average property from £259,900  a year ago to £282,300, an £22,400 increase or an 8.6% rise.

In a Southerly direction, we get to Crowborough, where average property values have also impressively risen by £30,600 to £383,500 which a rise of 8.5% in 12 months.  If you go a little further South along the A26 we get to Uckfield where property values have only increased by 4.5% taking an average property from £372,600 to £389,400.   

I find it amazing that five places along the A26 – Maidstone, Tonbridge, Royal Tunbridge Wells, Crowborough and Uckfield, all within a stones’ throw of each other, can experience such variation in property prices. 

 With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £15,000+ for the deposit and fees, I can only see greater demand for rental properties in Royal Tunbridge Wells, which will mean that more people will continue to buy property for Buy to Let, and where there is greater demand, the price tends to go up. This however, is only my opinion.  

 If you want to chat about any matter relating to property in Royal Tunbridge Wells, pop in and see me or one of my team in offices on Vale Road in Royal Tunbridge Wells (near the Train Station) for a chat or email direct for any opinion on

Wednesday, 10 September 2014

Royal Tunbridge Wells sees 8.5% return on investing in the rental market

I was talking to a landlord from Speldhurst the other day about the Royal Tunbridge Wells property market, following my recent articles in the Royal Tunbridge Wells newspaper. He wanted to know, with all the news about house prices rising, what had happened to average property prices in the last 12 months. According to my calculations, the ‘average value of a property’ in Royal Tunbridge Wells is now £399, 900, which is a rise of approximately £18,700 in the last 12 months (a rise of 4.9%).  Now by my calculations, the average rent being asked in Royal Tunbridge Wells is around £1,198 pcm, which means the yields/annual return are an impressive 3.6% per year.  Therefore, if you add the rise in property values and the annual yield a landlord can enjoy by receiving rent, the overall total return is approximately 8.5%.

When comparing this to what you get from investing in the banks, buy to let could be a good investment for you. As I reminded another landlord the other day from Langton Green, the Royal Tunbridge Wells property market has certainly changed since 2001. At the turn of the Millennium, of the 20,823 households in the town itself, 2,435 of those households (or 11.6%) were privately rented. Ten years later, over 2,740 new properties had been built in Royal Tunbridge Wells, but a lot of those had been bought for Buy to Let; because by 2011, there were 4,528 properties that were rented out to tenants .. that’s a lot of rented houses! (the people of Royal Tunbridge Wells might be interested to note that now 19.1% of houses in the town are privately rented compared to the UK average of 15.6%).

Don't get me wrong, there are pitfalls. My message to all the people of Royal Tunbridge Wells, be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple – take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't. Even if it's not from ourselves, there are still a few regulated  lettings agents in Royal Tunbridge Wells who are well placed to advise on whether the property you're considering will rent and at what potential price. We are certainly more than happy for you to pop in and see us at our office's on Vale Road in Royal Tunbridge Wells (near the Train Station)  for a chat or email direct for any opinion on

Monday, 1 September 2014

Royal Tunbridge Wells property prices .. the long climb back to 2007 prices

After reading my previous articles in the ‘Royal Tunbridge Wells Property Blog’ , some landlords have been speaking to me recently about stories in the press and their concerns about booming house prices and the next housing bubble in Royal Tunbridge Wells. In the past few months, if you were going to be buying in Royal Tunbridge Wells, it was vital to ensure you build in some capital growth by buying cheaply or finding a way to add value.  

Interestingly, property values in Royal Tunbridge Wells have increased by a modest 4.93% in the last 12 months. However, that does not tell the full story as different areas of Royal Tunbridge Wells have  grown at different rates.  Properties in TN1 have risen by 7.5% in the last 12 months.  Values in TN3 have risen by 6.6% whilst values in TN2 have risen by a more modest 4.9%.  Looking at TN4 we find values have only risen by 3.6% in the last year.

So even though different areas of RTW are growing at different rates they are none the less still growing, some may even say some areas of the town are at a runaway level and therefore ask quite rightly whether property values are becoming too expensive or getting out of control ? On the face of it, a 4.9% increase over the last 12 months in Royal Tunbridge Wells property values is impressive could this suggest properties are too expensive in Royal Tunbridge Wells?

Well the answer if both “yes” and “no”.  Yes because the headline price that property sells for in Royal Tunbridge Wells  is only 2.2% below the figures that were being achieved in 2007, yet No, because those headline figures don't take into account inflation. Since 2007, inflation has risen by around 19%. So instead of property values being nearly (2.2% nearly) as expensive as the 2007 boom, they are in fact 21.2% cheaper than the boom  (19% inflation plus 2.2% equates to 21.2%). People think inflation is a bad thing, eating away at the real value of your savings. It can however, be advantageous to property investors

My answer to landlords is get the best advice and opinion you can. Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring you are in pole position.