In last week’s article I noted there was a steady rise in Chichester’s property prices in 2015 (average values increased by 3.3%). This was marred somewhat for landlords by the raft of policy changes that were announced by the freshly elected Conservative party.
Many market commentators are expecting a busy few months as landlords rush to buy before April’s stamp duty hike, followed by a lull as landlords stubbornly refuse to pay the extra 3% charge.
Landlords will also be weighing up the cost of additional legislation, future tax changes and be dealing with the ‘Right to rent’ laws coming in February. There are also murmurings from the Bank of England about tightening the criteria for buy-to-let mortgages.
It’s not all bad for landlords though as many, including myself, predict rents will rise as the supply of rental properties diminish due to the government’s draconian changes.
Experts are again predicting this will be the year in which interest rates rise from their all-time low and destabilise the property market. Whilst they’ve recently risen in America (from 0.25% to 0.5%) I’m not convinced that 2016 will finally be the year we see a rise, although I maintain that long-term fixed rate mortgages are the best option for most.
Is it a good time to invest?
Regardless of the increase in stamp duty and cost of further legislation, history shows property performs well over the long-term.
There is still strong tenant demand for, and a shortage of, good quality rental property in Chichester, which should be the key focus of any property investment.
Those who receive my weekly Chichester Property News e-mail will know that the sales market seems to be gaining traction too, with double the amount of new listings last week compared to the week before. Estate agents I’ve spoken to have confirmed it’s getting busier; with more viewings, sales and a growing pipeline of new instructions.
What should I buy?
Whether you’re an existing landlord or are thinking of buying your first rental property, I would strongly suggest you seek independent advice before buying anything.
CRJ Lettings are one of the few regulated ‘lettings only’ agents in Chichester, meaning we’re well placed to advise whether the property you are considering will rent and at what price, without having a bias towards which particular property you buy or from which estate agent.
Please contact me if you are looking for a buy-to-let in 2016, need assistance letting a property or simply want to have a chat about the local market.
