A slowing housing market, a reduction in first-time buyers, and increasing rents are all music to the ears of landlords who have been struggling to purchase at commercial prices for the past couple of years.
Landlords exiting the market & first time buyers short of funds for renovation projects.
In 2021 & 2022 we saw property changing hands at prices never previously witnessed, and demand was intense at every level of the market. This included ‘Doer-Uppers’ – just the type of property that had fallen significantly out of fashion in recent years. Despite the enticing rent increases, many private landlords decided that punitive tax changes and ever expanding red-tape outweighed the returns and they took the opportunity to exit the market whilst prices were high.
Is ‘Offers Over’ Over?
With homesales all of a sudden returning to more negotiable prices and the hopes of a Sealed Bids scenario suddenly looking somewhat ambitious, opportunities are suddenly there for landlords to purchase at prices they could only have dreamed of last year. A cursory look on Rightmove offers up very interesting selection of property at very realistic prices (along with the usual handful of ones from the eternal optimists, obviously)
Realistic pricing is THE most important thing…
Things aren’t doom and gloom for sellers. Buyers are still out there. The market hasn’t collapsed, but it’s a fact that it is a whole lot slower – whilst this time last year you could have advertised a house at Offers Over £150,000 and quite reasonably expected to get Sealed Bids of £15,000 more than that, this year that £150, 000 might just be ambitious in itself. The keys is to price things properly. Do your own research. Be wary of the waffle. When you’re talking to agents, check-out their recent track record. Are they realistic or are all their listings being reduced?
A Great Time to Pick Up a Bargain?
20 years ago, first time buyers bought ‘Doer-Uppers’ and then spent their waking hours at B&Q. Times have changed and DIY isn’t nowadays everyone’s idea of fun, so the improvement projects tend to be snapped-up by builders and small developers. A slower market, tougher lending criteria, and lower returns however are going to mean a reduction in ‘tart & turn’ purchasers, and potentially more opportunity for landlords to snap up a bargain…..
If you live locally that’s great, you may have a team, or you might take-on a project yourself. If you live further afield however, it can be more tricky, and that where we come in! Granger & Oaks have an outstanding team that can do the work for you, and we can manage the project. It’s something we’ve always done, and we know what works and what tenants want. Whether it’s purely a cosmetic job, or a larger project to add rooms, we can guide you on potential cost, and the uplift you’re likely to achieve. Once the work is complete we can also arrange the furniture and line-up new tenants to move in. Your involvement can be as much or as little as you wish.
A changing market creates new opportunities
Whenever there is a shift in tide, the market always presents new challenges and opportunities. For buyers purchasing with cash or a low LTV 2023 could well be a bumper year.
If you’re thinking of adding to your portfolio in 2023, just drop us a line. We’re always happy to guide clients on suitable properties to purchase too!
Call us today on 0115 9629770 to see how we can help.