After the shock of the Conservatives returning to power with
a majority at Westminster, all the potential issues and possible uncertainties
of a hung parliament has lifted the cloud from the Royal Tunbridge Wells
property market. Talking to other Royal
Tunbridge Wells agents, surveyors and solicitors in the area over the last few
days, there are signs this has started a new impetus in the Royal Tunbridge
Wells property market after a subdued six months, when an amalgamation of
tougher lending conditions, a natural correction after the strong recovery in Royal
Tunbridge Wells property prices in 2014, and political uncertainty ahead of the
General Election slowed demand.
Against the back drop of Labour’s election promises of rent
controls and three year tenancies, some Royal Tunbridge Wells buy to let
landlords were waiting to see how these new policies would be implemented
before they committed themselves to buying more property for their buy to let portfolio. Now that uncertainty
has been removed, the long term picture is very positive.
So, with all that uncertainty now removed, where next for
the Royal Tunbridge Wells property market?
Well with inflation at zero and with the Money markets happy David
Cameron is still at No.10, the Bank of England have no reason to raise interest
rates until 2016 at the earliest. As mortgage rates are at their lowest levels
since 2010, landlords with large deposits will now be wooed by the mortgage
companies in the coming months with low rates.
You see over the past couple of years, Royal Tunbridge Wells
landlords have benefitted from a booming Royal Tunbridge Wells job market. Unemployment in
the Royal Tunbridge Wells has dropped to 0.9%, as a year ago, 614
people were claiming unemployment benefit compared to today’s 499. With more
jobs and better pay, as the level of rents is directly linked to tenant’s
wages, there has been an increase in the rental prices tenants are willing to
pay for good quality Royal Tunbridge Wells properties.
Some landlords might be nervous about Tory’s plans for the
housing market in the next five years in terms of tenant demand for their
rental properties. One plan is for Housing Association tenants to have the
right to buy their property. These kind of tenants were never in the private
rented sector and will actually increase the supply of properties in the
housing stock in decades to come. The Government ‘Help to Buy Scheme’ has only
helped to buy eighteen Royal Tunbridge Wells properties since April 2013. Considering 1,358
properties have changed hands in the last year alone in Royal Tunbridge Wells,
I don’t think it has made a huge difference to our local property market.
The biggest matter, when it comes to tenant demand of rental
property going forward, comes from the shift in the mindset and attitudes
towards renting itself. Twenty years ago you were seen as a second class
citizen if you rented a property.
In Royal Tunbridge Wells, as in the rest of
the UK (apart from Central London), renting continues to offer good value for
money for tenants. If you are an
existing landlord in Royal Tunbridge Wells or thinking of becoming one (or as
we like to call you .. a FTL .. a ‘first time landlord’), then I must suggest
you seek out specialist advice and opinion. Like many agents in Royal Tunbridge
Wells, we will happily give you our opinion on the current state of the market and the advantages/disadvantages to
investing in the Royal Tunbridge Wells property market if you pop into our
offices. However, if time is at a premium, another source of information on the
Royal Tunbridge Wells Property Market is the Royal Tunbridge Wells Property
Blog www.royaltunbridgewellsproperty.blogspot.co.uk
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