With 3,789 people in Private Rented Properties in Evesham – Should you be investing in Evesham Buy To Let?
Buy to let landlords in Evesham today might well feel a little bruised 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 likely caused some tempering of the property market with property prices not increasing by the levels we have seen in the last few years. I think it’s possible that we might even see a very slight drop in property prices this year and if Evesham property prices do drop, first time buyers could be attracted back into the Evesham property market; meaning less demand for renting (meaning rents may reduce slightly). But landlords certainly shouldn’t run for the hills…
Evesham has a population of 23,427 and you might be surprised by the number of those people who live in private rented accommodation.
Yields will also rise if Evesham property prices fall, which will 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 Evesham landlords add to their portfolio. Rental demand in Evesham is expected to stay solid and may even see an improvement if uncertainty is protracted. However, there is something even more important that Evesham landlords should be aware of: the changing attitudes of ‘20 something’ potential first time buyers.
At a recent event, I got chatting to a young couple. Both were in their mid/late twenties, both have decent jobs in Evesham 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. Firstly, they don’t want to put cash into property and would rather spend it on living and socialising; 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. Many of their friends apparently feel the same. It seems that buying a house may just not be top of the priority list for many youngsters.
So, as 16.2% of Evesham 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 Evesham. Where else are you likely to invest to beat the savings rates? The stock market can compete, but comes with much higher risks. And, at least with property you have something tangible. There is nothing quite like bricks and mortar!