Tuesday, 11 December 2018

Royal Tunbridge Wells House Prices vs Royal Tunbridge Wells Rents since 2006

The Royal Tunbridge Wells housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the Country. Upon saying that, looking at both what we do as an agent, and chatting with my fellow property professionals in Royal Tunbridge Wells, the market has certainly changed for both buyers and sellers alike (be they Royal Tunbridge Wells buy to let landlords, Royal Tunbridge Wells first time buyers or Royal Tunbridge Wells owner occupiers looking to make the move up the Royal Tunbridge Wells property ladder).

Royal Tunbridge Wells House Values are 1.88% higher than a year ago, and the rents Royal Tunbridge Wells’ tenants have to pay are 1.5% higher than a year ago

When we compare little old Royal Tunbridge Wells to the national picture, national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago, and this will surprise you even more, as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).

However, if we look further back...

Since 2006, Royal Tunbridge Wells House Values are 77.6% higher, yet the rents Royal Tunbridge Wells’ tenants have had to pay for their Royal Tunbridge Wells rental property are 26.4% higher

...which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Royal Tunbridge Wells tenants are 15.6% better off in ‘real spending power terms’.

Looking at the graph, the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Royal Tunbridge Wells house values (in red) in the years of 2008 and 2009 ... yet as Royal Tunbridge Wells property values started to rise after the summer of 2009, see how Royal Tunbridge Wells rents dipped 6/12 months later (the yellow bars)…. Fascinating!

So, we have a win for tenants and a win for the homeowners, as they are also happy due to the increase in the value of their Royal Tunbridge Wells property.

However, maybe an even more interesting point is for the long-term Royal Tunbridge Wells buy to let landlords. The performance of Royal Tunbridge Wells’ rental income vs Royal Tunbridge Wells house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it’s true Royal Tunbridge Wells landlords have benefited from decent capital growth over the last decade –with the new tax rules for landlords – now more than ever, it’s so important to maximise one’s yields to ensure the long term health of your Royal Tunbridge Wells buy to let portfolio. More and more I am sitting down with both Royal Tunbridge Wells landlords of mine and landlords of other agents who might not be trained in these skills - to carry out an MOT style check on their Royal Tunbridge Wells portfolio, to ensure your investment will meet your future needs of capital growth and income. If you don’t want to miss out on such a MOT check up, drop me a line – what have you got to lose? 30 minutes of time againstpeace of mind - the choice is yours.

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