Property Eye: Martin Roberts from Homes under the Hammer
Wednesday, 14 October 2009 11:15
Martin Roberts - TV property expert, presenter of Homes under the Hammer and author - offers advice and guidance on all things from the world of property.
This week he looks at recent house price increases, what to consider before starting a building project and the market for garages.
Martin's view on latest news in the property world
Most recent data from the Land Registry for August show all regions saw positive house growth.
This was backed up by house price figures from Halifax, which put average house prices up 0.8 per cent in August to £160,973. But this is still down 10.1 per cent on a year ago.
House prices are now more or less at the same level of August 2004, but they are up £6,000 from the low of £154,490 in April
However, the range of house price falls is widespread across the nation.
Some areas have seen prices down 22 per cent - but others have faired better with Ceredigion in Wales suffering the least with falls of -8.4 per cent over the past year.
This is closely followed by North Lincolnshire (-8.8 per cent), Shropshire (-9.1 per cent), Herefordshire (-9.5 per cent) and Cumbria (-9.9 per cent).
All other areas have seen double digit losses.
Wales and the West now seem to be leading the way. Monthly rises have been recorded of 5.8 per cent in Port Talbot, 3.7 per cent in Conwy, 3.1 per cent in Wrexham, 2.3 per cent in Shropshire and 2.2 per cent in Bristol.
While most analysts remain cautious about predicting a full blown 'recovery' in the housing market, these statistics certainly make more encouraging reading. Phew!
Improving, not moving:
Key things to consider BEFORE you start work on a property
Whether or not you need to apply for planning permission, you should think about the following before you start work.
Neighbours
Pop round and let your neighbours know about your plans to carry out work.
They are likely to be as concerned about work which might affect them as you would be about changes which might affect your enjoyment of your own property.
Try to reach as happy compromise, as even if what you want to do would be lawful from a planning point of view, there is no point in upsetting neighbours if they are to be adversely affected.
Design
Think carefully about how your property will look when the work is finished.
A well-designed building or extension is likely to be much more attractive to you, and to your neighbours, while hopefully adding value to your house when you sell it.
Crime prevention
Don't let alterations and additions to your home make you more vulnerable to crime.
Make sure your home is secure against burglary by taking precautions such as installing security locks to windows.
The crime prevention officer at your local police station can provide helpful advice on ways of reducing the risk.
Lighting
Light itself, and minor domestic light fittings, are not subject to planning controls. But, if you are planning to install external lighting for security or other purposes, ensure the intensity and direction of light do not disturb others.
Covenants and private rights
Covenants or other restrictions in the title to your property, or conditions in the lease, may require you to get someone else's agreement before carrying out some kinds of work to your property.
This may be the case even if you do not need to apply for planning permission.
You can check this yourself or consult a lawyer. You may also find that some properties enjoy historic rights.
Whether or not you need to apply for planning permission, there are other consents or approvals you may need to obtain before you can start work.
Martin's Property Clinic:
Lock up Garages: Easy Pickings or Parking Mad?
Trevor Green asks:
I often see lock up garages being advertised for rent in the local paper.
Are they good investments do you think?
Martin replies
Lets be honest, they are not the most appealing of properties - you can't get excited about the views, character features, versatile accommodation or homeliness of a 3m x 6m box - but lock up garages are BIG business in the rental property sector.
So what is the appeal of lock up garages to a property investor?
Well, firstly, they are probably the lowest maintenance properties that you'll come across.
So, from the point of view of a landlord, they are easy pickings.
There's no requirement to redecorate or modernise (apart from maybe a few cosmetic repairs and a lick of paint to the door) and you're not going to have tenants ringing you (or your managing agent) at the most inopportune times to say that the boiler has broken.
Although it is advisable to have a formal, written Tenancy Agreement in place to cover what your tenant can and can't do with the garage, these properties will not fall under the Assured Shorthold Tenancy (AST) rules and your responsibilities as a landlord are minimal.
Aside from the obvious use of a garage to store a motor vehicle, the demand for secure garages stems from lots of different needs such as:
- Storage of classic cars or cars which aren't in everyday usage
- Storage of motorcycles (often shared with other motorcycle users)
- General storage of household goods (it can work out cheaper and less restrictive to rent a garage space for a while than to put furniture and household items into conventional storage units).
- Storage of boats and water sports equipment
If the garage is in a city centre or very close to transport links to employment centres, then:
- Daytime or night time parking of the tenants main vehicle
Asking prices for garages can vary considerably across the country with sites in prime inner city areas fetching tens of thousands of pounds. At the other end of the scale, you can pick them up for just a few grand.
Since the price will be below the Stamp Duty threshold of £175,000, there will be no Stamp Duty to pay (at least until the end of 2009) and so purchase costs are also much less than with other types of property.
As with any rental investment however, it's not just the purchase price that should be considered, but the eventual yield if the property is going to be rented out. This is where things can get really interesting.
The level of rent that you can charge on a garage will vary with location, with individual units commanding anything from £50 to £300 per calendar month.
The desirability of the location and demand for parking or storage space like this in an area will dictate what rent can be achieved. I've witnessed yields over and above 20 per cent per annum for lock up garages in sought after locations - so they really are profitable.
If you have a problem or confusion from the property world, Email your questions to askmartin@martinroberts.co.uk
Individual questions may not be answered personally, but could appear in this column.
To find out more about Martin Roberts and for property advice visit www.martinroberts.co.uk
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