SIDCUP PROPERTY NEWS - JUNE 2018

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SIDCUP MILLENNIALS HAVE SPENT £135,072 ON RENT BY THE AGE OF 35 The Millennials were born between the mid 1980’s and late 1990’s thus making them between the age of around 22 to late 30’s. They are the imaginative, artistic youngsters who grew up with the newest tech and computers and who are huge aficionados of music festivals, gourmet pizzas, emoji’s, selfies and old school nostalgia. Also known as Generation Rent, many Millennials have discovered that renting is a good choice for their shelter and accommodation needs without the hassle that comes from buying a home. Nonetheless, that is not the only reason they don’t buy property. When they should be concentrating on their profession, putting down roots and starting a family, Millennials are still going through the pressure and strain of student loan liabilities whilst, at the same time, finding it tough to pay rent. The hot topic at the moment is the cost of renting, as both political parties have seen mileage in wooing these Millennial Generation Renters. The average rent in Sidcup is currently £1,004 per month making this a big-ticket item on the monthly budget. I was inquisitive to find out exactly how much Sidcup Millennials will spend on rent by the time they reach their mid 30’s. The average age people leave home in the UK is 22; so looking at a Sidcup 22-year-old (or Millennial) who left home in 2005 then between 2005 and today that Sidcup Millennial will have shelled out £135,072 in rent. It’s no wonder local Millennials can’t afford to buy a Sidcup home given their tremendous debt. This means younger Sidcup Millennials will probably carry on renting for the foreseeable future, simply because the prospect of buying a home is not yet achievable … that is until you look more deeply at the numbers … Looking at the chart above, the average rent of a Sidcup property in 2005 was £739 per month (pm) … if it had risen by inflation, today, that would be £1,041 pm. As I have already mentioned in the article, today it stands at £1,004 per month. Looking over the last 12 years, adding up all the differences between what the average actual rent was compared to what it should have been if rent had gone up by inflation, the average Sidcup Millennial tenant would have paid £139,777. This means that an average 35-year-old Sidcup Millennial tenant, who has been renting since 2005, is better off by £4,706 when comparing the actual rent paid compared to what it would have been if it had risen by inflation. In fact, if you recall I mentioned in an article a few weeks ago, the older Sidcup Millennials are starting to use those savings and are gradually shifting towards home ownership. They are finally catching up with the British homeownership dream as Bank of Mum and Dad help with the deposit. Also, the scrapping of Stamp Duty from the Government starts to kick in together with the realisation that if the 5% mortgage deposit can be scrapped together (yes, 95% first time buyer mortgages have been available since 2009), it is still a lot cheaper to buy than rent, meaning this will unquestionably drive demand for Sidcup homes for sale – good news for Sidcup homeowners. … and what does this mean for Sidcup landlords? Well the vast majority of younger Millennials are still renters and I foresee this to be the case for at least the next ten to fifteen years. Landlords will need to keep improving their properties to ensure they get the best tenants and they will see a much higher rent achieved. Millennials will pay top dollar for a top dollar property. It is important to do things correctly as making money won’t be as easy as it has been over the last twenty years. With a greater number of properties on the market .. comes greater choice. Don’t buy the first thing you see, buy with your head as well as your heart … because as I promised a few weeks ago, the first rule of Buy To Let Investment ….. “You are not going to live in the property yourself” 60 Second Online Property Valuation Curious to know how much your property would sell or rent for but not quite ready for a visit. Find out online instantly using our FREE online valuation tool. Sales Valuation Click here to get a FREE instant valuation visit valuation.drewery.co.uk Current Average Asking Prices in Sidcup 1 BED FLAT £216,667 2 BED FLAT £270,749 data from zoopla.co.uk using current properties being marketed 2 BED HOUSE £352,268 3 BED HOUSE £435,363 4 BED HOUSE £636,251 For more Sidcup Property News visit: www.sidcuppropertyblog.co.uk
SIDCUP PROPERTY MARKET – WHICH HOUSES ARE ACTUALLY SELLING? Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down … the Press is full of column inches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging a national group of letting and estate agents, talking to my fellow property professionals from around the UK, the one thing that is immediately apparent is the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways. … And that made me think … is there just one Sidcup Property Market or many? I like to keep an eye on the property market in Sidcup on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Sidcup, be that a buy-to-let property for a Sidcup landlord or an owner occupier house for a home owner. So, I thought, how could I scientifically split the Sidcup housing market into segments, so I could see which part of the market was performing the best and the worst. I decided the best way was to split the Sidcup property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Sidcup, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile. Looking at the market, I have calculated . So, having split the Sidcup Property Market approximately into four equal sizes, the results in terms what price band has sold (subject to contract or stc) the most is quite enlightening – The best performing price range in Sidcup is the middle market. As I would expect, the upper quartile (the top 25%) is finding things toughest. Interestingly for Sidcup landlords, the lower market is also selling well, meaning there are plenty of Sidcup landlords buying properties to add to their buy to let portfolios. Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere). It is a fact that British (and Sidcup’s) housing markets have ridden the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. No matter what happens to us Brexit or anything else … unless the Government starts to build hundreds of thousands extra houses each year, demand will always outstrip supply … so maybe a time for Sidcup landlord investors to bag a bargain? Want to know where those Sidcup buy to let bargains are? Follow my Sidcup Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Sidcup, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you? Current Average Asking Rents in Sidcup 1 BED FLAT £1,086pcm 2 BED FLAT £1,230pcm data from zoopla.co.uk using current properties being marketed 2 BED HOUSE £1,173pcm 3 BED HOUSE £1,415pcm 4 BED HOUSE £1,450pcm For more Sidcup Property News visit: www.sidcuppropertyblog.co.uk
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SIDCUP PROPERTY NEWS - JUNE 2018

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