Nantwich house prices vs Nantwich rents since 2006
The Nantwich 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 Nantwich, the market has certainly changed for both buyers and sellers alike (be they Nantwich buy to let landlords, Nantwich first time buyers or Nantwich owner occupiers looking to make the move up the Nantwich property ladder).
Nantwich house values are 5.3% higher than a year ago, and the rents Nantwich tenants have to pay are 1.1% higher than a year ago
When we compare little old Nantwich 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, Nantwich house values are 30.4% higher, yet the rents Nantwich tenants have had to pay for their Nantwich rental property are 14.9% higher
…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Nantwich tenants are 27.1% 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 Nantwich house values (in red) in the years of 2008 and 2009 … yet as Nantwich property values started to rise after the summer of 2009, see how Nantwich 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 Nantwich property.
However, maybe an even more interesting point is for the long-term Nantwich buy to let landlords. The performance of Nantwich rental income vs Nantwich house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).
Whilst, it’s true Nantwich 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 Nantwich buy to let portfolio. More and more I am sitting down with both Nantwich 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 Nantwich 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 against peace of mind – the choice is yours.