Hertford Vs Ware property values – Which Town has performed the best?

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When purchasing a buy to let property, there are two ways landlords make money through property letting - capital growth and rental income growth.

A landlord from Hertford Heath, who has a number of properties in both Hertford and Ware, asked a few weeks ago about the difference between the Hertford and Ware housing markets. He was focused on capital growth but also wanted to ensure his yield was relatively fair.  We were quite surprised with the findings and wanted to share them with you.

The average property price in Hertford is currently £487,200. In the last 3 months property values in Hertford have dropped by just over 1.7%. Whilst in Ware, average property prices are £446,100, having dropped by just 0.5% in the last 3 months. Therefore, is Ware the better bet?

Well, not necessarily.

Over the last 5 years, property values in Ware have risen by over 27% and in Hertford by over 34%, meaning over the last 5 years, property values have increased at a 26% quicker rate in Hertford compared to Ware. But then there is question of yield, as Ware normally has slightly higher yields than Hertford.

Each Hertford and Ware landlord will have different needs and requirements in his or her property investment. If you want an unbiased opinion on what or what doesn't make a good property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords.

My thoughts on the local Property rental market can always be found on my blog but if you would like some specific advice please feel free to pop into our High Street office in Stanstead Abbotts or give us a call.

 "Your local property experts, our advice is free but our knowledge is priceless" 

  

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

                                                    

Letty Green, SG14 2NZ (STSAL99267427) | Hunters

Letty Green, SG14 2NZ (STSAL99267427) | Hunters

Average Property Values Rise by 2.4% in SG12

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Current average property values in the SG12 postcode rose by 2.4% over the last 3 months. This follows several months of sluggish activity in the local property market putting the average price in this area to £418,312 which is 6.38% higher than 12 months ago.

Interestingly, the Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have reported seeing a fall in mortgage lending and enquiries from prospective home buyers. This is important because it comes amid an overall rise in housing market activity in SG12. Data from the Land Registry said completed house sales in this postcode in the three months to the end of May 2016 actually rose by 13.3% compared to the same three month period up to May 2015.

This increase in property sales is supporting local property values, as there is a shortage of houses coming onto the market property values are still rising well above the level of inflation. 

The population in the Ware region is growing at a much higher rate than the number of properties being built. This increasing demand for a roof over people’s head, which is outpacing the supply of new houses being built locally, is creating a severe imbalance in the local and national housing market, thus making home ownership an ever increasingly distant dream for many of the potential local first time buyers.

In fact, I still maintain the view that house prices are likely to rise by a further 3 to 5% in SG12 in 2016. The reason being is that the rise reflects both strong economic conditions and steady market conditions with very low numbers of properties on the market. 

Many Buy to Let landlords know that investing in the Ware region property market is a long-term strategy of 5 - 10 years minimum. Governments come and go, but unless East Herts District Council start to build hundreds of new properties a year to make up for the lack of supply, a strong demand for rental properties will always remain.

As my existing landlord clients will testify, whether you manage your property yourself, or another local agent manages your properties, everyone is always made to feel welcome when they pop in to our offices in Stanstead Abbotts High Street to discuss anything to do with the local property market, how Stanstead Abbotts compares with its closest rival towns. I don’t do hard sell, I will just give you my honest and straight talking opinion.

"Your local property experts, our advice is free but our knowledge is priceless" 

                                            

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

Ready To Rent an 6% "Yield"

www.propertyfile.org

Here's a good Buy To Let which has just come on the market with an agent in Hoddesdon. Two good sized bedrooms, well presented and in a great location for tenants being so close to the Town centre and easy reach of Rye Station. 

The property is offered Chain Free and looks ready to rent. Expect to achieve a rental of at least £850 per calendar month which will provide a "Yield" of around 6%. One important tip is to check the length of lease but other than that this is a good buy. 

    

Two Bedroom Apartment, Hoddesdon. £170,000 

Click Here For Details

My thoughts on the local Property rental market can always be found on my blog but if you would like some specific advice please feel free to pop into our High Street office in Stanstead Abbotts or give us a call.
 

Want some free advice on renting your property? Download our FREE guide "The Secrets to Successful Lettings", just go to www.pflet.instapage.com   

 "Your local property experts, our advice is free but our knowledge is priceless" 

  

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

                                            

           

Deal Of The Day, Ware £155,000 & 5.5% Yield..................

www.propertyfile.co

Here's a nice little investment property that has been on the market for a while. One bedroom ground floor flat located at The Brambles in Ware. It is on the market at £155,000 and is offered Chain Free!

Difficult to see if it needs any refurbishments done as there are no internal shots! but as its only a one bedroom flat the costs shouldn't be too high should work be required. 

Expect this property to rent for £750 per calendar month upwards and so would provide a "Yield" of around 5.5%.

Just a quick word of warning to check the length of lease as it may need to be extended if it is a bit short.

Click Here For Details - One Bedroom Garden Flat, Ware £155,000

My thoughts on the local Property rental market can always be found on my blog but if you would like some specific advice please feel free to pop into our High Street office in Stanstead Abbotts or give us a call.
 

Want some free advice on renting your property? Download our FREE guide "The Secrets to Successful Lettings", just go to www.pflet.instapage.com   

 "Your local property experts, our advice is free but our knowledge is priceless" 

 

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

                                            

           

Ware Region Property market since 2008........

www.propertyfile.co

Following on from my recent articles about the Ware region property market and in particular what had happened to the rents Ware & surrounding areas tenants have had to pay since the Credit Crunch here are some interesting numbers that I worked out this week. 

In 2008 our average rental achieved for a two bedroom apartment in the area was £700 per calendar month and now in 2015 similar properties would achieve £875 pcm, that's an increase of  25% in rental income over 7 years. There has also been a significant increase in capital growth on these properties as figures show that the average price of a two bedroom apartment has increased by just over £45,000 in the same 7 year period, this is also an increase of around 25%. 

Looking at the figures above, not only are the increases in rent and capital growth for the Ware region interesting but the best part for the investors is the increase in "Yield". Had you purchased the two bedroom apartment in 2008 for £157,000 and subsequently rented the property for £700 pcm you would have achieved a "Yield" of around 4.5%, not bad but when you consider that property is now achieving £875 pcm your "Yield" has now increased to 5.6%. So in summary, just by keeping hold of the asset you purchased in 2008, your monthly income has increased by 25%, your Yield has increased on the original investment and your capital has increased by nearly £6,500 per year!   

If you would like to know more about the local property market please feel free to get in touch at our High Street office in Stanstead Abbotts and we will be more than pleased to give you some tips and advice.

Want some free advice on renting your property? Download our FREE guide "The Secrets to Successful Lettings", just go to www.pflet.instapage.com   

Your local property experts, our advice is free but our knowledge is priceless" 

                                            

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

Local Rentals Rise Close To National Highs..........

www.propertyfile.org

Tenant demand in the local private rented sector continues to boom. According to recent research from Rightmove, letting agents have seen a 76 per cent increase in email enquires over the past 12 months. Meanwhile, the latest Paragon Mortgage survey has revealed 43 per cent of landlords experienced a rise in demand during the second quarter of this year and 51 per cent expect further growth in the coming months.

It is clear that the number of people looking to rent a property is not going to slow down anytime soon. So, what can we do as Letting Agents to take advantage of this '

Rising rents

An obvious benefit of higher demand is that tenants will be willing to pay more to secure a property ahead of the competition. This has already led to a rise in rents locally as mentioned in my previous article. Rightmove revealed the top five high-demand locations outside of London as Stevenage, Southend, Dartford, Wickford and Basildon - These have all seen the average asking rent grow by between 11% and 13.6% over the past 12 months. Meaning our previous calculation of Hoddesdon rents rising by 9% is pretty close to these highs 

Martin Totty, chief executive of the Barbon Insurance Group, the parent company of HomeLet, stated: “Rental values are now increasing year on year across the country, with no exception."

Be more selective

Another advantage of high demand is that it allows for a more selective approach to be taken when choosing renters in our local area. Disputes and situations with problem tenants can often be traced back to the fact an unsuitable person was chosen to live in the property in the first place. With so many people now looking for a rented property we can afford to take the time to carry out thorough due diligence and ensure they are the right kind of people to let to. 

This has been highlighted by Sam Mitchell, head of lettings at Rightmove, who commented: "Demand for quality rental properties is at a record high … In these areas of high demand it’s more important than ever for tenants to know how to make themselves desirable to landlords, so having their finances in order and good references is key to getting the property they want in such a fast paced market."

As my existing landlord clients will testify, whether you manage your property yourself, or another local agent manages your properties, everyone is always made to feel welcome when they pop in to our offices in Stanstead Abbotts High Street to discuss anything to do with the local property market, how Stanstead Abbotts compares with its closest rival towns. I don’t do hard sell, I will just give you my honest and straight talking opinion.

"Your local property experts, our advice is free but our knowledge is priceless" 

                                            

           

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”