As my regular readers know, my passion is talking about Milton
Keynes property. As a property agent I like to comment on the Milton Keynes
property market, which I hope will be of interest to both homeowners and buy to
let landlords alike. However, this week, I want to highlight the plight of the tenants
of Milton Keynes as more and more of their wages are being taken up by ever
increasing rents.
The cost of renting a home in Milton Keynes has broken
through the £1000 a month barrier as the average rent for a property in the town,
now stands at £1087 per month, and whilst this was a drop of 0.6% last month, rents
for new lets are 7% higher than they were 12 months ago.
House price inflation has certainly eased in Milton Keynes
from the heady days of 2014, but still with retail price inflation (for goods
and services) reducing to 0% any increase in property values, no matter how
small, means in real terms property is still getting more expensive. Meanwhile,
many tenants have given up saving for a mortgage deposit as rents continue to
take more and more of their wage packets leaving nothing to save for a deposit.
That means, more and more tenants are deciding to rent for the long term and
therefore the desire for decent high quality rental properties continues to exceed
the available rental stock.
I would go as far as to suggest that rents are an ideal barometer
to the state of the local economy as a whole and strongly believe that the
recent increase in Milton Keynes rents are a sign that the Milton Keynes economy
is picking up.
This means Milton Keynes landlords are continuing to
capitalise on the Milton Keynes property market. The most recent Land Registry
data suggests the annual property price rises in the town have eased over 2015,
leaving property values 9.13% higher than 12 months ago, so as property price
growth is easing off, with the increased rents, rental yields are strengthening
for the first time in years to compensate. The mortgage market has become more
stable after the mad months of May and June after the Tory’s got back into
No.10 and so, everything is set to be
good news for landlords; even with the Chancellors change of tax rules in the coming
years for buy to let mortgages.
You can get some amazingly low mortgage rate deals at the
moment, so with mortgage rates so low and returns still extraordinarily attractive,
there’s rarely been a better time to invest in rental properties.
However, (you knew
there would be a however!), it’s all
about buying the right property at the right price. Not all property types are
seeing equal rises in rents and capital growth.
Different parts of the town, different types of properties are
experiencing quite different changes.
For example, the average length of time the 31 Milton Keynes properties up
for rent between £250 to £500 per month is an eye watering 259 days, whilst the
average length of time the 194 properties at £500 to £1000 per month is 38 days
and 158 properties that fall into the £1000 to £2000 per month price bracket is
74 days.
When you start comparing different parts of Milton Keynes,
the numbers are even stranger! The
bottom line is that you must take advice and opinion. One source of advice and
opinion is the Milton Keynes Property Blog. In the Milton Keynes Property Blog,
you will see many more articles like this, discussions and even what I consider
to be the best buy to let deals around, irrespective of which agent is selling
it.
Whether you are a landlord, ‘Homes Under the Hammer’ addict
or just a homeowner who is interested in what is happening to the local
property market, then please visit the Milton Keynes property Blog
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