Are ‘would be’ Wimbledon homeowners warming to the idea of renting?

Are ‘would be’ Wimbledon homeowners warming to the idea of renting? I was reading a report the other day produced by the Halifax, about the UK property market and why more and more of the younger generation seem to be renting rather than buying. I find it fascinating that over the last ten years, the British obsession of buying a house almost as soon as you left school, and the fact that if you rented you were seen as a second class citizen, has turned on its head to a point where the hopes and dreams to own a nice home will be replaced by the ambition simply to live in one. In the latter half of the 20th Century, you left school, got a job, bought a small house and kept buying and selling property, constantly upgrading until eventually they carried you out in a box. However, the perceived shame and stigma of renting is no longer the case, as it seems that the British are now beginning to accept a lifetime of renting. This is a very important consideration for both Wimbledon homeowners and Wimbledon landlords as it will transform the way the Wimbledon property ladder looks in the future and I might ask whether or not it will exist at all for some people? The make up of households is one important factor, especially in the Wimbledon property market. The normal stereotypical married couple, two kids and dog of the 1970’s and 80’s has changed. More and […]

Wimbledon Buy To let – Bedrooms? 

Last week, a landlord from Wimbledon emailed me to ask, after reading the Wimbledon Property Blog, if he should extend his terraced house making an extra bedroom in the loft. He had a builder friend who owed him a favour, and thought a good way would be get an ‘inexpensive’ extension. Having more useable space is generally thought to be consistent with better quality accommodation and homeowners and tenants are prepared to pay for it. If you added a bedroom to a two bed terraced to make a three bed terraced, it will add 10% to the value of the property.  Turn a three bed terraced into a four bed terraced and 9% will be added to the value. Looking at semi detached properties, and turn a two into a three bed and 12% will be added to the value, whilst making a three bed semi into four bed will add 9% in value. However, before you rush off to the planning department there are some important considerations, whether you are a homeowner or landlord.  What would be the cost of making that extra bedroom? The average value of a terraced house in Wimbledon is currently £721,300 whilst the average value of a semi detached house is £1,047,100, meaning to make money the cost of the extension would need to be less than 68,523 on the terraced property and £109,945 on the semi detached house. Talking to a number of trades people in the City, most are booking up into the New […]

Wimbledon Buy To Let – Demand and Supply

I have been discussing the Wimbledon rental market with some landlords recently and it seems that rents in Wimbledon are 21.49% higher than they were in 2008. Word has obviously got around as another Wimbledon landlord has since rung me, wanting to know more of the story of what was happening to current rents in the area. The reason he asked was that his current agent hadn’t increased his rent for a number of years and was concerned if he was getting the best return from his buy to let investment. The Wimbledon rental market is all about supply and demand (isn’t it so in all parts of the economy?). On the supply side, 695 rental properties have come up for let in the last 31 days in Wimbledon. It sounds a lot until you consider there are 10,508 rental properties in Wimbledon, that means only 6.61% of the rental stock of properties in Wimbledon are coming onto the market each month (it is normally around 7%). One reason for this lack of new rental properties coming on the market is the fact that tenants seem to be staying in properties longer. With this lack of supply, newer tenants have to pay more to secure the property they want. And this is the crux of the matter …properties they want. Older properties in Wimbledon, that haven’t been maintained, still retain their wood chip wallpaper from the 1970’s and thread bare carpets have seen their rents drop. Tenants want either modern properties […]

Affordability of housing in Wimbledon

  Affordability of housing in Wimbledon Talking to an elderly relative recently, he reminded me that in his day, you could have bought a property for the same price of what a decent second hand car would sell for today and that his father was buying property for the same price as a decent 50 inch LCD TV!  Now of course, these are only headline prices and we have had wage growth and inflation.  Interestingly, since the Second World War, property values in Wimbledon doubled in 1961, 1971, 1975, 1980, 1988, 2000 and 2006. Looking at more recent times, since the start of the Millennium, these increases in property values have generated large increases in equity for many homeowners but on the other side of the coin also making housing unaffordable for other people.  It might interest readers to note that most of Europe experienced sharp increases in property values in the early years of 2000’s, with only Spain beating  us (although we know what has happened to the Spanish property market over the last few years!).  In the 2000’s, the British situation was different in two regards.  First the property value boom started earlier and saw more sustained increases, second, the regional pattern was fairly uniform. However, since 2010, the regional pattern has been completely different in the UK.  Compared with  2007 (the last property boom), average property values today in England and Wales are 1.2% higher, whilst in Greater London, they are 35.7% higher, whereas in Wimbledon they […]