Maidstone’s ‘Generation Trapped’ and the £9.05bn legacy

Last week, I wrote an article on the plight of the Maidstone 20 something’s often referred to by the press as ‘Generation Rent’. Attitudes to renting have certainly changed over the last twenty years and as my analysis suggested, this change is likely to be permanent. In the article, whilst a minority of this Generation Rent feel trapped, the majority don’t – making renting a choice not a predicament. The Royal Institution of Chartered Surveyors (RICS) predicted that the private rental sector is likely to grow substantially by 1.8m households across the UK in the next 8 years, with demand for rental property unlikely to slow and newly formed households continuing to choose the rental market as opposed to buying.

However, my real concern for Maidstone homeowners and Maidstone landlords alike, as I discussed a couple of months ago, is our mature members of the population of Maidstone. In that previous article, I stated that the current OAP’s (65+ yrs in age) in Maidstone were sitting on £4.01bn of residential property ... however, I didn’t talk in depth about the ‘Baby Boomers’, the 50yr to 64yr old Maidstone people and what their properties are worth – and more importantly, how the current state of affairs could be holding back those younger Generation Renters.

In Maidstone, there are 7,655 households whose owners are aged between 50yrs and 64yrs and about to pay their mortgage off. That property is worth, in today’s prices, £2.52bn. There are an additional 7,626 mortgage free Maidstone households, owned by 50yr to 64yr olds, worth £2.51bn in today’s prices, meaning...

Maidstone Baby Boomers and Maidstone OAP’s are sitting

on £9.05bn worth of Maidstone Property

These Maidstone Baby Boomers and OAP’s are sitting on 27,471 Maidstone properties and many of them feel trapped in their homes, and hence I have dubbed them ‘Generation Trapped’.

Recently, the English Housing Survey stated 49% of these properties owned by the Generation Trapped, as I have dubbed them, are ‘under-occupied’ (under-occupied classed as having at least two bedrooms more than needed). These houses could be better utilised by younger families, but research carried out by the Prudential suggest in Britain it’s estimated that only one in ten older people downsize while in the USA for example one in five do so.

The growing numbers of older homeowners who want to downsize their home are often put off by the difficulties of moving. The charity United for all Ages, suggested recently many are put off by the lack of housing options, 19% by the hassle and cost of moving, 14% by having to declutter their possessions and 14% by family reasons such as staying close to children and grandchildren.

Helping mature Maidstone (and the Country) homeowners to downsize at the right time will also enable younger Maidstone people to find the homes they need – meaning every generation wins, both young and old. However, to ensure downsizing works, as a Country, we need more choices for these ‘last time buyers’.

Theresa May and Philip Hammond can do their part and consider stamp duty tax breaks for downsizers, our local Council in Maidstone and the Planning Dept. should play their part, as should landlords and property investors to ensure Maidstone’s ‘Generation Trapped’ can find suitable property locally, close to friends, family and facilities.

If you are looking for an agent that is well established, professional andcommunicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/ 

With 16,435 people in Private Rented Properties in Maidstone - Should you still be investing in Maidstone Buy To Let?

If I were a buy to let landlord in Maidstone today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let. To add insult to injury, Brexit has caused a tempering of the Maidstone property market with property prices not increasing by the levels we have seen in the last few years. I think we might even see a very slight drop in property prices this year and, if Maidstone property prices do drop, the downside to that is that first time buyers could be attracted back into the Maidstone property market; meaning less demand for renting (meaning rents will go down). Yet, before we all run for the hills, all these things could be serendipitous to every Maidstone landlord, almost a blessing in disguise.

Maidstone has a population of 105,550, so when I looked at the number of people who lived in private rented accommodation, the numbers astounded me …

Maidstone - Accommodation Type and the Number of Occupiers
Owned outright - Maidstone	Owned with a mortgage - Maidstone	Shared ownership (part owned and part rented) - Maidstone	Social rented (aka Council Housing) -  Maidstone	Private rented - Maidstone	Living rent free - Maidstone
25,792	46,286	1,153	15,100	16,435	784
24.4%	43.9%	1.1%	14.3%	15.6%	0.7%

Yields will rise if Maidstone property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost. If property values were to level off or come down that could help Maidstone landlords add to their portfolio. Rental demand in Maidstone is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Maidstone landlords should be aware of: the change in the anthropological nature of these 20 something potential first time buyers.

I have just come back from a visit to my wife’s relations after a family get together. I got chatting with my wife’s nephew and his partner.  Both are in their mid/late twenties, both have decent jobs in Maidstone and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy? The answers surprised me as a 40 something, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 15.6% of Maidstone people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Maidstone – because what else are you going to invest in?  Give your money to the stock market run by sharp suited city whizz kids – because at least with property – it’s something you can touch - there is nothing like bricks and mortar!If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

Maidstone Unemployment Drops to 3.8% and its effect on the Maidstone Property Market

It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, eight months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is yes and no.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Maidstone are only 0.04% up month on month (and the month before that, they had only seen an increase of 0.01%) – so is this the time to panic and run for the hills?

Doom and Gloom then? Well, let me consider the other side of the coin.

Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Maidstone property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Maidstone property values dropped by an eye watering 2.2% in April 2013 and 0.25% in March 2015 – and no one batted an eyelid then.

You see, property values in Maidstone are still 8.96% higher than a year ago, meaning the average value of a Maidstone property today is £328,000. Even the shares of those new home builders Barratt have increased by 43.3% since early July and Taylor Wimpey’s have increased by 37.3%. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years - but only slightly.

The Maidstone housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Maidstone Borough Council area stands at 3,400 people (3.8%), which is considerably better than a few years ago in 2013 when there were 5,700 people unemployed (6.9%) in the same council area.

However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!

Forget Brexit and yes inflation will be a thorn in the side – but the greatest risk to the Maidstone (and British) property market is that there are simply not enough properties being built thus keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t! In the coming weeks in my articles on the Maidstone Property Market, I will discuss this matter further!

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

£54m a year black hole in the Maidstone Property Market - Is Buy to Let Immoral? (Part 2)

An Englishman’s Home is His Castle as Maggie Thatcher lauded - everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Homeownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.

But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Maidstone buy to let properties as an investment. Maidstone first time buyers were in competition with Maidstone landlords to buy these smaller starter homes … pushing house prices up in the 2000’s (as mentioned in Part One) beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Maidstone landlords fanning the flames of the Maidstone housing crisis bonfire?

I believe that the landlords of the 7,008 Maidstone rental properties are not exploitive and are in fact, making many positive contributions to Maidstone and the people of Maidstone. Like I have said before, Maidstone (and the rest of the UK) isn’t building enough properties to keep up the demand; with high birth rate, job mobility, growing population and longer life expectancy.

According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.

 

It doesn’t sound a lot of difference, so let us look at what this means for Maidstone …

For Maidstone to meet its obligation on the building of new homes, Maidstone would need to build 384 households each year. Yet, we are missing that figure by around 160 households a year.

For the Government to buy the land and build those additional 160 households, it would need to spend £54,135,136 a year in Maidstone alone. Add up all the additional households required over the whole of the UK and the Government would need to spend £23.31bn each year … the Country hasn’t got that sort of money!

With these problems, it is the property developers who are buying the old run-down houses and office blocks which are deemed uninhabitable by the local authority, and turning them into new attractive homes to either be rented privately to Maidstone families or Maidstone people who need council housing because the local authority hasn’t got enough properties to go around.

The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.

So only you, the reader, can decide if buy to let is immoral, but first let me ask this question - if the private buy to let landlords had not taken up the slack and provided a roof over these people’s heads over the last decade .. where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

Maidstone’s private renting set to hit 9,881 households by 2021 - Is Buy to Let immoral? (Part 1)

Can we blame the 55 to 70-year-old Maidstone citizens for the current housing crisis in the town?

Also known as the ‘Baby Boomer Generation’, these Maidstone people were born after the end of the Second World War as the country saw a massive rise in births as they slowly recovered from the economic hardships experienced during wartime.

Throughout the 1970’s and 1980’s, they experienced (whilst in their 20’s, 30’s and 40’s) an unparalleled level of economic growth and prosperity throughout their working lifetime on the back of improved education, government subsidies, escalating property prices and technological developments, they have emerged as a successful and prosperous generation.

...Yet some have suggested these Maidstone baby boomers have (and are) making too much money to the detriment of their children, creating a ‘generational economic imbalance’, where mature people benefit from house-price growth while their children are forced either to pay massive rents or pay large mortgages.

Between 2001 and today, average earnings rose by 65%,

but average Maidstone house prices rose by 133%

The issue of housing is particularly acute with the generation called the Millennials, who are young people born between the mid 1980’s and the late 1990’s. These 18 to 30 years, moulded by the computer and internet revolution, are finding as they enter early adult life, very hard to buy a property, as these ‘greedy’ landlords are buying up all the property to rent out back to them at exorbitant rents ... it’s no wonder these Millennials are lashing out at buy to let landlords, as they are seen as the greedy, immoral, wicked people who are cashing in on a social despair.

Like all things in life, we must look to the past, to appreciate where we are now.

The three biggest influencing factors on the Maidstone (and UK) property market in the later half of the 20^th Century were, firstly, the mass building of Council Housing in the 1950’s and 60’s. Secondly, for the Tory’s to sell most of those Council Houses off in the 1980’s and finally 15% interest rates in the early 1990’s which resulted in many houses being repossessed. It was these major factors that underpinned the housing crisis we have today in Maidstone.

To start with, in 1995 the USA relaxed its lending rules by rewriting the Community Reinvestment Act. This Act saw a relaxation on the Bank’s lending criteria’s as there was pressure on these banks to lend on mortgages in low wage neighbourhoods, as the viewpoint in the USA was that anyone (even someone on the minimum wage) any working class person should be able to buy a home.  Unsurprisingly, the UK followed suit in the early 2000’s, as Banks and Building Society’s relaxed their lending criteria and brought to the market 100% mortgages, even Northern Rock started lending every man and his dog 125% mortgages.

So when we roll the clock forward to today, and we can observe those very same footloose banks from the early/mid 2000’s (that lent 125% with a just note from your Mum and a couple of breakfast cereal tokens), ironically reciting the Bank of England backed hymn-sheet of responsible-lending. On every first time buyer mortgage application, they are now looking at every line on the 20-something’s banks statements, asking if they are spending too much on socialising and holidays ... no wonder these Millennials are afraid to ask for a mortgage (as more often than not after all that – the answer is negative).

Conversely, you have unregulated Buy To Let mortgages. As long as you have a 25% deposit, have a pulse, pass a few very basic yardsticks and have a reasonable job, the banks will literally throw money at you ... I mean Virgin Money are offering 2.99% fixed for 3 years – so cheap!

So, in Part Two next week, I will continue this emotive article and show you some very interesting findings on why young people aren’t buying property anymore (and it’s not what you think!).

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

How To Get The Price You Really Want For Your Maidstone Home!

Firstly, your goal, what is it? Do you want the best possible price for your home?

If the answer is yes, this information is just what you need, (Even if your main priority is speed you can still use the following techniques to get a great result.)

I am going to presume you have already ,decluttered, cleaned to within an inch of your life, carefully styled and prepped your home, had the best photographs taken to attract the most amount of people and have an action plan ready for nearly everything.

This next point will get it down to the crucial elements, as if all of the above is done right this can significantly increase your result on your biggest tax free asset. If you have not already instructed your agent you can make this a great way of engaging them and finding out the available elements before making your decision.


Start with the price you show the world.


It is a little known fact that when a kidnapper starts they negotiation they start with a round figure. Round figures ( those with 3 zero’s at the end) give the impression that the price is not fixed and therefore they feel more at ease by making an offer.

A figure such as £109,556 or £253,870feel a little constrained and fixed

In order to substantially increase your chances of an offer, opt for a nice round figure. It does not matter where they start, so long as they do start with an offer. A good negotiator ( your excellent estate agent ) will be able to move their goal posts in line with your desired result .


Find out more


Getting the price you want can be helped by knowing your buyers. Why do they want your property, what is their motivation for moving. This information is like magic fairy dust, you can use this to your advantage when an offer is made.

In order to negotiate you have to get an offer. Make sure anyone discussing your home is incredibly enthusiastic, has been to the property and they are so convinced that you will get the offer you want they do not even consider anything less than the best.

Negotiating

Okay so your agent does the negotiating, will they do what you want? A quick tip- Do not tell them your bottom line- make sure they aim high!

Successful negotiating is a fine art, your agent is not a go- between a third party. They are a very important part of the process.

This is the bit I love best about my job- I am also a big lover of chocolate especially after a successful negotiation!

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

Getting Rentals Right in Maidstone

Just as anyone can open up an estate agency, so they can also start up a lettings business, without any training, experience or qualifications. This should concern landlords, because there is far more to the business than meets the eye. In some ways, finding a tenant is the easy bit!

The issues arise over how selective the agency is when recommending a tenant. For example:

What is the tenant’s credit history?
They may impress by offering a large deposit, but will their payments be reliable in the future?
They might tell you their intention is to stay for two years, but will they give notice after six months?
Will they fail to pay their final month’s rent as a way of enforcing the return of their deposit?
Will they treat your property as if it were their own?
Would they prove difficult to evict if need be, as court orders can take months?

Whilst no agent can avoid all these scenarios all the time, good lettings agents have a pretty good track record in how well they vet their tenants, and will visit the property regularly to ensure everything is ok. They will also be able to offer insurance covering damages, non-payment of rent, and even compensation for tenant-free voids. Additionally, they will recognise their duty to tenants by helping landlords to fulfil their obligations.

Your buy-to-let investment should deliver the optimal return with minimal involvement and stress on your part, and appointing the right letting agent is part of this investment. A good investment can make you money, but a bad investment can actually lose you money. Why not give us a call for the best advice in the area?

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/

A Word to Maidstone Landlords about Presentation

When letting your property, you naturally want your property to look its best, but how far should you go in terms of presentation?

Firstly, aim to understand how your property “sits” within the market. Not all tenants have the same criteria, so walk through the house with your letting agent to identify your property’s strengths and weaknesses. Look through the eyes of a typical likely tenant, and consider what aspects could be improved to enhance your chances of letting to that person.

For example, it may be that your property is in generally good condition, but the carpets let it down. Whilst you could take account of this in the rent, new, or professionally cleaned, carpets can transform the presentation of a property and appeal to a tenant who might otherwise be put off. However, if your property is in need of general updating, a new carpet could be a waste of money unless combined with an overall improvement in the presentation.

A tenanted property can sometimes experience harder wear and tear than an owner-occupied one, and a new tenant will always prefer to “make it their own” rather than simply taking over from the last tenant. So a simple coat of paint can generally do wonders and need not be expensive.

Additionally, a tenant who moves into a fresh, clean, well-presented, newly-redecorated property, knowing they need to return it one day in the same condition, is more likely to look after it more carefully, and even stay longer. A tenant with a sense of pride is generally a good tenant. We like good tenants! So do our clients!

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on claire.harvey@seekersmaidstone.co.uk or call on 01622 671878. If you are in the area, feel free to pop into the office – we are based on 53 High Street, Maidstone, ME14 1SY. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Maidstone Property News.

LinkedIn, www.linkedin.com/in/claireharveyestateagent
Blog, http://maidstonepropertyblog.blogspot.com/
Facebook, https://www.facebook.com/SeekersHomesUK
Twitter, https://twitter.com/seekershomes
Website, http://www.seekershomes.co.uk/