4 Bedroom Semi-Detached, Bletchley £325,000.00

Mon, 12 Feb 2024 11:01:45 GMT

MK Property are excited to bring to the market this three/four bedroom semi-detached offered for sale with NO CHAIN. The property compromises recently re fitted kitchen, garage conversion in to bedroom four with en-suite shower room, open plan lounge/diner, three good sized bedrooms and driveway.

3 Bedroom Semi-Detached, Bradville £189,995.00

Wed, 20 Mar 2024 04:42:33 GMT
INVESTOR SALE ONLY - THREE BEDROOM SEMI-DETACHED PROPERTY - NEEDS SOME RENOVATION -
THE ACCOMMODATION BRIEFLY COMPRISES - ENTRANCE HALL - CLOAKROOM - LOUNGE/DINER - KITCHEN - BEDROOM THREE - FIRST FLOOR - TWO BEDROOMS - BATHROOM.

1 Bedroom End Terrace, Walnut Tree £85,000.00

Wed, 03 Apr 2024 09:27:03 GMT
Great Starter Home! Offered for sale on the shared ownership scheme with a 40% share, this one bedroom end of terrace property is situated on the very popular residential area of Walnut Tree located to the East side of Milton Keynes.

3 Bedroom Detached, Walnut Tree £130,000.00

Fri, 07 Jun 2024 11:31:22 GMT
RARE TO THE MARKET! A rare chance to own this three bedroom detached property on the popular shared ownership scheme, offered for sale at a 30% share. Located in the desirable location of Walnut Tree.

*** PRICE EXCLUDES PREMIUM ***

3 Bedroom Terrace, New Bradwell £275,000.00

Mon, 24 Jun 2024 10:26:23 GMT
***MUST BE VIEWED - TWO/THREE BEDROOM HOME IN NEW BRADWELL*** A short drive away from the amenities of Central Milton Keynes and nearby to a mainline railway station with regular links into London Euston, this property would make an ideal first time purchase or family home.

2 Bedroom End Terrace, Oxley Park £325,000.00

Wed, 21 Aug 2024 09:29:20 GMT
No upper chain! This charming two-bedroom house is available for sale in the sought-after area of Oxley Park. The property is presented in good condition throughout, making it a fantastic opportunity for buyers.

2 Bedroom Apartment, Northampton £900.00

Tue, 29 Oct 2024 04:26:59 GMT
MK Porperty are pleased to present this two bedroom second floor apartment to rent, located in the sought after area of Boothville, Northampton, within easy reach of Northampton College. Available to move in THIS MONTH !

2 Bedroom Maisonette, Wolverton £165,000.00

Mon, 27 Jan 2025 04:01:06 GMT
A two bedroom first floor duplex maisonette located just off Wolverton High Street, within easy reach of Wolverton Train Station. The property comprises of; open plan living area, kitchen with appliances, two bedroom and bathroom. The property benefits from allocated parking.

1 Bedroom Maisonette, Wolverton £150,000.00

Mon, 27 Jan 2025 04:14:11 GMT
REFURBISHED one bedroom first floor Maisonette is located just off Wolverton High Street, within easy reach of Wolverton Train Station. The property comprises of; open plan living area, kitchen with appliances, bedroom and bathroom. The property benefits from allocated parking.

1 Bedroom Maisonette, Wolverton £190,000.00

Mon, 27 Jan 2025 04:25:24 GMT
Refurbished one bedroom ground floor maisonette is located just off Wolverton High Street, within easy reach of Wolverton Train Station.

5 Bedroom Detached, Wellingborough £400,000.00

Wed, 09 Apr 2025 09:48:18 GMT
NO CHAIN - TURN KEY - FULLY LICENCED 5 BEDROOM HMO - FULLY FURNISHED - WHEN FULL OCCUPANCY RENT - £2925.00 -**STAMP DUTY PAID**

2 Bedroom Terrace, Bletchley £220,000.00

Tue, 16 Sep 2025 10:52:22 GMT
***INVESTMENT PURCHASE ONLY! *** CALL FOR FURTHER DETAILS! Two-bedroom terraced property located in Bletchley. The property comprises, entrance hall, kitchen diner, lounge, two double bedrooms, family bathroom and large storage cupboard. Externally there is a rear garden and car port to the front.

3 Bedroom Terrace, Milton Keynes £230,000.00

Thu, 02 Oct 2025 10:01:39 GMT
ALERT INVESTORS/FIRST TIME BUYERS!! Situated on the Lakes Estate, Bletchley is this three-bedroom terrace.

2 Bedroom Apartment, Central Milton Keynes £270,000.00

Mon, 08 Dec 2025 01:17:50 GMT
Delightful Communal Gardens...Situated in Ruby House in Central Milton Keynes is this mid floor two bedroom apartment offered for sale with no upper chain. The property is offered in good condition and boasts large open plan living, kitchen with integrated appliances, two bedrooms and two bathrooms.

1 Bedroom Apartment, Central Milton Keynes £170,000.00

Mon, 08 Dec 2025 01:20:12 GMT
The Best of City Living with this well presented One Bedroom Apartment in Central Milton Keynes! The apartment is located in the heart of Milton Keynes, giving great access to the mainline train station and having bars, restaurants, large shopping centre and leisure facilities on your doorstep.

Milton Keynes Homeowners Pocketed £227k Each in the Last 20 Years

Wed, 09 Feb 2022 12:00:00 GMT
Since 2001, UK average house prices have risen by an astonishing 187.2% across the UK, while in London the figure is 247.6%.

Looking back at the people that bought in those first few years of the new Millennium, few of those buying or selling property in 2001 could have forecast the massive financial impact that their decision then would have on the rest of their lives.

In those years, there have been winners and losers, where some Milton Keynes buyers have made hundreds of thousands of pounds and Milton Keynes renters have paid out tens of thousands of pounds and yet been unable to buy their first home - but life is often not as simple as that, so in this article we wanted to discuss the matter further.

The average house price in Milton Keynes has increased by 191.7% to £345,800 in the last 20 years, a profit of £227,240. Now of course these are average prices and don`t take inflation into consideration. Yet even when adjusted for inflation, Milton Keynes house prices have still risen by 119.6% in the last 20 years.

Characteristically, the longer a homeowner has owned their Milton Keynes property, the larger the gain when they sell. Yet most of these profits are never seen by Milton Keynes homeowners. It has never been money in the bank unless you sell up and downsize or move somewhere cheaper. Instead, these gains are re-invested back into the housing market when they buy their next home.

So, whether the gains are banked or tied up in their bricks and mortar, it looks like all the Milton Keynes homeowners are in the driving seat.

What about all the Milton Keynes first-time buyers, priced out of the market and unable to get on to the property ladder? Are the young of Milton Keynes losing out again? Reading the newspapers you would think so, yet nothing could be further from the truth. In fact…It`s 22.7% cheaper today to buy a house in Milton Keynes compared to 2007.

That isn`t a typo!

In 2002, 28.4% of a first-time buyer`s household income went on the mortgage payments. Today, that figure stands at 37.7%, yet in 2007, it was 48.8% ... hence why it`s cheaper today!

Of course, for most young Milton Keynes potential first-time buyers, the other largest barrier to home ownership is the matter of raising an adequate deposit.

Rising rents (and future energy prices) won`t help and will in fact make this problem worse, giving ambitious Milton Keynes first-time buyers not much left at the end of the month to save a deposit for their first home.

With soaring Milton Keynes house prices, this means the amount Milton Keynes renters need to save for their deposit is growing year on year.

For these annoyed renters, there is the unpleasant irony that if they could only get on the Milton Keynes housing ladder, they would find themselves better off. They would spend a lower proportion of their monthly take home pay on keeping a roof over their heads.

Some people in the press have suggested the older generation, with all the equity tied up in their homes over the last 20 years, should release some of the money and give it to their children or grandchildren to help them on the ladder maybe?

Reports in the press have also described many homeowners in their 60`s (and older) changing their plans to move home. Many were planning to downsize to release the tied-up equity in their home. That equity would either be used to invest in the bank to produce an income for them and/or to help their children (sometimes even grandchildren) on to the property ladder.

Yet with the interest paid by banks and building societies on any lump sum being very low, to many mature homeowners it hardly seems worthwhile making the move to downsize. This means many younger would-be first-time buyers are missing out on help from the Bank of Mum and Dad (or the Bank of Grandad and Grandma) with their deposit.

However, the problems caused by low interest rates could also be their saviour.

Many older homeowners have turned to Equity Release, thus allowing them to get hold of a share of the equity amassed in their property, in exchange for a tax-free lump sum of cash.

Cash that could be used to help with deposits for their children/grandchildren?

The mature homeowner then stays in their larger family home and helps their family buy a property.

Whilst we are not a mortgage adviser (and you must take proper advice from a qualified mortgage broker), equity release mortgages don`t have end dates and the interest payments are rolled up (until you pass away). This means that there aren`t any monthly payments.

The interest rate you pay is normally fixed for the mortgage and because interest rates are so low, that means the debt shouldn`t balloon up. And should you decide to sell in a few years` time, you just pay back the capital, redemption fee and the small amount of interest accrued.

Now of course, that does mean there will be less for your offspring to inherit when you pass away.

Equity release mortgages though have had some bad press recently. In the past they were unregulated and pricey. Yet today, there is more protection for borrowers.

One answer to the growing interest debt is to pay part or all of the monthly mortgage interest charged, yet you must have the income for that.

You also need to take advice on how the equity release will affect your liability for nursing home fees and inheritance tax. Also, if only one person in your home is the owner of the property, if that homeowner dies, the partner who is not on the mortgage (because only owners can go on a mortgage) won`t have any rights to stay in the family home.

Finally, if you are planning to move, don`t just compare the interest rate, but the redemption charge for early repayment – some of them can be very high.

Our advice – take professional advice and speak to your family and involve them. Yes, we have all built up some amazing equity in our Milton Keynes homes, and yes, there is potential to help the younger generations with that wealth. Just go in with eyes open and know all the facts, all the pros and all the cons – then decide what is best for you with all that information to hand.

What are your thoughts, as a mature Milton Keynes homeowner or a first-time buyer, on this? It would be good to hear from you.

Top tips on becoming a landlord

Mon, 14 Feb 2022 12:00:00 GMT
Renting out a property comes with many pros and cons. Before you can decide on whether to manage a property yourself or have a lettings agency take care of it, it`s important to have a solid understanding of what is required of you as a new landlord.

OnTheMarket.com has written this article highlighting some "Top tips" on becoming a landlord.
https://www.onthemarket.com/.../top-tips-becoming-landlord/

10,165 Milton Keynes OAP Homeowners Could Be Forced to Sell Their Homes as Their Energy Bills Rise

Wed, 16 Feb 2022 12:00:00 GMT
The wholesale gas price has tripled in 2021. Even if you aren`t on gas at home, half the UK`s electricity comes from burning gas so, this affects everyone. Even though domestic bills have been protected from the majority of this with the Government`s price cap, energy bills will rise by at least 50% in April. This means the average energy bill will rise by £60 per month in the spring, thus producing a potential cost of living crisis.

Why have gas and electric bills increased so much?

The cost of gas (and indirectly electricity) rose during 2021 due to a number of reasons, and the troubles are worldwide rather than exclusively affecting the UK.

To start with, the winter of 2020 was very cold in Central Europe, which increased demand for gas and used up many European countries` stored gas supplies, whilst demand for gas also swelled in China and the Far East. On the supply side, many European countries rely on Russia for its gas, yet Russia`s supply of gas was lower than expected.

When will gas and electric prices rise?

The Government have an energy price cap which is the maximum amount your gas and electricity supplier can charge you. The energy price cap is set by Ofgem every six months, and the next review is this February. Any increases could only be introduced from the 1st of April 2022.

The existing energy price cap is £1,277 (for an average UK home), which was set in the summer of 2021 (and that was a 12% rise on the previous cap). Analysts believe without Government intervention, the February increase will be around 50% on that, meaning the cap will increase to just over £2,000 per annum.

That means there will be a lot of Milton Keynes people that cannot afford the increase in energy prices.

Some have suggested the Government should remove VAT from gas and electricity bills for a year, yet that would only save them around £100 a year – but it`s still £100!

Milton Keynes OAP`s will be one of the hardest hit by these gas and electricity hikes

For those pensioners who reached state pension age after 2016, their state pension will rise in April by £5.55 per week or £288.60 a year. Considering their energy bills will rise by at least £720 a year, together with the underlying inflation for goods and services rising at 5.4% on top, this will mean many OAP homeowners will have to make a difficult choice.

So, what is the scale of the problem in Milton Keynes? 1 in 11.75 people in Milton Keynes is an OAP

Of the 170,283 population of Milton Keynes, 14,496 of them are 65 years or older, and of those, 10,165 own their own home.

However, as I have discussed several times in the Milton Keynes Property Blog, many of those older Milton Keynes homeowners are still in their original family homes even though their children have flown the nest.

They are living in large 3- and 4-bedroom homes with lots of rooms that require heating, even though they are not being used. To give you an idea of the difference of costs:

· The average Milton Keynes one/two-bedroom home`s energy bills will rise from £795 per year to £1,435 per year.

· The average Milton Keynes three-bedroom home`s energy bills will rise from £1,163 per year to £2,104 per year.

· The average Milton Keynes four-bedroom home`s energy bills will rise from £1,638 per year to £2,936 per year.

Therefore, we predict there will be an uplift in the number of mature homeowners in Milton Keynes moving forward their downsizing plans throughout 2022/3 as they look to reduce their outgoings. The downsizing will also reduce other outgoings like their council tax and building insurance premiums.

Of course, many mature homeowners will make other choices. This could be a great time to look at other forms of heating like ground source heating and solar panels to reduce one`s dependence on energy from the National Grid.

You could ask a local Energy Assessor to perform an energy audit on your home by tasking them for an Energy Performance Certificate. If you need to know the name of a decent Milton Keynes Energy Assessor, drop us a line or pick up the phone.

So, if downsizing is an option, what will that mean for you and the local Milton Keynes property market?

A big issue will be finding a suitable home to move to. We very much have a chicken and egg scenario now as waiting for the right property to come on to the market, before you put your home on the market, will probably mean that your ideal property will sell even before the photographs have been taken of your home.

Yet, many Milton Keynes homeowners are worried if they put their house on the market and it sells, they won`t be able to find another suitable home and thus be homeless? Classic chicken and egg – so what do you do first?

There is a third way of doing this ... good old fashioned ‘chain building`. We have many mature Milton Keynes homeowners that are contacting us to move home, yet don`t want to be made homeless. What we do is slowly build a group of people in a chain over many months. It requires a lot of patience to build a chain downwards and upwards around you.

There is no cost to this and no legal commitment to go through. It can take six, even twelve months to build a chain of people who are prepared to wait for the chain to form ... yet by playing the long game, everyone gets their next ‘forever home`.

The long-term advantage to everyone else is that a new supply of larger homes will be put onto the market in Milton Keynes. Yet, if you are going to rely on waiting for these properties to appear on Rightmove or Zoopla, you will be sorely disappointed.

According to national research from Denton House Research, 7 out of 8 people who viewed a house through an estate agent in 2021 were not on the mailing list of that agent before they viewed it. That means all these properties built on a chain builder (as above), will be sold, won`t appear on Rightmove or Zoopla, meaning you will miss out.

You have to get yourself on the mailing list of our estate agency (and other agents if they do this chain building) so you don`t miss out on your next forever home in Milton Keynes.

TOP 5 reasons to INVEST IN MK

Mon, 21 Feb 2022 12:00:00 GMT
Milton Keynes is one of the top ten locations where prices are rising the fastest and it shows no signs of slowing down. As development starts on one of the most significant projects in a decade, which includes a boutique cinema, dining area, public spaces and new retail locations, central Milton Keynes is the first step in a wave of regeneration.

Commercially, Milton Keynes is mostly recognised for its IT and innovation performance. With the third-highest number of business start-ups per 10,000 of the UK population and strong economic performance, Milton Keynes is a key member of the Fast Growth Cities group that has resulted in nearly 20% of its workforce joining the knowledge sector. It`s these advancements that are contributing to Milton Keynes rapid rise – the city is expected to double its population to 500,000 by 2050.

We`ve put together the TOP 5 reasons to INVEST IN MK check it out
https://www.mkproperty.org/invest-in-mk.htm

2,959 Milton Keynes Landlords Could Be Hit With £14k Bills and Red Tape in Tory `Levelling Up` Plans

Wed, 23 Feb 2022 12:00:00 GMT
On the face of it, yes, it could be seen as another attack on the humble Milton Keynes landlord, having to spend money on their properties and get tangled up with red tape on a register and then having no-fault evictions removed.

Yet, as always, the devil is in the detail…

This ‘Levelling Up Bill` is a White Paper. White Papers are policy documents created by the existing Government that set out their future proposals for legislation. Many White Papers don`t even make it to the House of Commons to be debated on, and even then, it needs to be voted on by both Houses of Parliament before becoming law. Any changes are at least two or three years away, and that`s assuming it gets debated and subsequently approved.

Many have said the White Paper is supposed to lay out how to resolve the problem of rebalancing the UK economy that is suffering from the highest level of regional inequality than any G8 country. This is a gargantuan challenge…yet the Levelling Up White Paper reads very much like a shopping list of great ideas without the means to pay for it.

One of the 12 points in the White Paper was focusing on housing, with a plan to introduce a new minimum standard for rental properties, a landlord register and the removal of no-fault evictions (as an aside, there was also a mention of a possible reintroduction of Home Information Packs - remember those from 2009!).

So, what does this mean for the landlords of the 12,700 private rental properties in Milton Keynes?

Sub Standard Rental Properties

The proposed changes will mean rental homes in the private sector will have to meet two specific standards that the existing 12,991 social housing homes in Milton Keynes currently need to meet.

The first being called the ‘Decent Homes Standard` (DHS) and the second, the Housing, Health and Safety Rating System (HHSRS) evaluation.

Looking at data from the Government, there are 2,959 private rental properties in Milton Keynes that are considered substandard under these two measures and each one would cost between £11,000 and £14,000 to bring up to the prescribed standard. That means…the estimated total cost to improve the 2,959 Milton Keynes properties, that are considered substandard, could be as high as £41,427,400.

All of that would have to come out of the pockets of Milton Keynes landlords!

Yet both systems of standards (DHS & HHSRS) have been slated by many (even by the Government itself).
The DHS criteria for the standard are as follows:
1. It must meet the current statutory minimum standard for housing
2. It must be in a reasonable state of repair
3. It must have reasonably modern facilities and services
4. It must provide a reasonable degree of thermal comfort

Note how the word ‘reasonable` is used in three of the four points of the DHS. Reasonable is an arbitrary and a very much subjective point of view. It screams loopholes and get out clauses.

Looking at the HHSRS, the Government announced just before the pandemic in June 2019 that the HHSRS would be revamped after it was found to be ‘complicated and inefficient to use`.

Putting aside how one measures the standards, it is a simple fact that there are many Milton Keynes rental properties that are substandard. We believe it`s right the Government has an ambition to halve the number of sub-standard private rentals by 2030. However, would it surprise you that…in 2006, 46.7% of private rented homes in the UK were classed as substandard and today that has reduced, without any legislation, to 23.3%. One must ask if new legislation is now required?

Also, if you recall in an article we recently wrote (drop us a line if you would like us to send it to you), Milton Keynes landlords will be faced with bringing their properties up to an energy rating (EPC) of C between 2026 and 2028 in legislation already announced.

Most of the works to meet that EPC rating requirement will be the same works to meet this new DHS and HHSRS. Also, in that article, we discussed how the Government have suggested that certain allowances will be made for landlords on rental properties that can`t be improved.

So, we think Milton Keynes landlords should sit tight and let the Government shine more light on this in the coming months before any knee jerk reactions are made.

Landlord Register

To be honest, there are several city/borough registers around the UK for landlords. Experience has shown they seem to add an extra level of bureaucracy and red tape. The register would be for every Milton Keynes buy-to-let landlord and rogue landlords would be struck off whilst allowing tenants new redress rights. Another reason to employ the services of a letting agent to sort!

End of No-fault Evictions

Again, we spoke about this a few weeks ago with the proposed removal of Section 21 to evict a tenant (again, if you want a copy, drop us a line). If you recall, we stated that no-fault evictions were removed in Scotland over four years ago and the apocalyptic suggestions it would kill the rental market for Scottish landlords was not forthcoming. Now of course, the Scots strengthened the other grounds to evict a tenant. If the Government strengthen the Section 8 legislation, again, we cannot see this being an issue south of the border. Again, time will tell once the Government put more meat on the bones of the White Paper.

Conclusion

Many of the announcements made in the Levelling Up White Paper are re-hashed proposed legislation that has been on the books for the last couple of years.

This White Paper is not another nail in the coffin of buy-to-let in Milton Keynes.

Yet, many commentators have cautioned that more landlords with substandard homes will sell up because of these proposed changes, warning the sell up would add to the private rental sector`s shortage of homes, thus pushing up rents.

If that was true, that would increase rental returns on Milton Keynes buy-to-let and attract more Milton Keynes landlords into the sector, wouldn`t it?

But if you don`t agree other Milton Keynes landlords will buy these rental properties that other landlords are selling, who will buy their Milton Keynes properties from them? It will be Milton Keynes renters, who are now able to buy because the price has come down, meaning equilibrium should return to the market.

This is all theoretical and there are shortages/gluts in specific locations. Let us not forget it was 12/18 months ago that rents were dropped by double digit percentage points in the space of a couple of months in the big cities. Those rent drops weren`t anything to do with landlords buying up City Centre rental properties, but demand plummeted with 20 something tenants moving back in with their parents during the first lockdown and the months that followed. Yet, now rents have bounced back to pre-pandemic levels (and more) with the return of tenants to the cities.

In a nutshell, if Milton Keynes landlords do end up selling in their droves (which they won`t), yet if they do, those Milton Keynes properties will still exist.

Few of them will be left empty because most of them will be bought by other Milton Keynes landlords as they will be attracted to the sector as inflation takes hold whilst others will be bought by first-time buyers.

What goes around, comes around. So, let`s see what happens in the coming months. In the meantime, if you`re a Milton Keynes landlord and you want to discuss anything in this article, please either drop us a line or send us an email.

Why do house prices keep rising?

Thu, 24 Feb 2022 12:00:00 GMT
January was the busiest-ever start to a new year for the housing market, and this month has been even busier, with a considerable number of people determined to move as we head into spring.

Rightmove has advised that they usually see a rise in asking prices from January to February, but they`ve seen the most significant jump in more than 20 years this month. The average price of homes coming to market in Britain has risen by £7,785, hitting a record high of £348,804.

Often, we get asked, "when will prices go down" the truth is the #miltonkeynes property market has remained very buoyant and hasn`t shown any signs are slowing in the past few years, even with a global pandemic.

Read the full article - https://www.rightmove.co.uk/news/articles/property-news/why-house-prices-keep-rising-0222/?utm_source=RM+-+Why+to+use+prices+keep+rising&utm_content=hpifeb22&fbclid=IwAR3CUpGbuDwdTIW77K_5YmyKM10WdwU4I8xsAwB4Jn06u9JD8h7uojDy7Iw

Supporting a local good cause - Samuel`s Charity

Tue, 01 Mar 2022 12:00:00 GMT
Danielle Withers-Brown is RAISING MONEY for Samuel`s Charity
Danielle and her husband Craig have chosen to be put through their paces and signed up for the "Rat Race 2022" - a 20 miler course rammed full of obstacles with over 200 challenges waiting to be completed; the mud crawl, tyre climb, hamster wheels, floating planks are a few of what they will be facing.

It sounds exhausting just writing about it!

Every sick child needs a smile. Please help us raise as much as we can for this fantastic charity!
Please spare whatever you can. Every penny does make a massive difference to this fantastic charity.

If you`d like to make a donation please click the link - https://bit.ly/3K7Qvt3

Why Are There So Few Milton Keynes Homes For Sale?

Wed, 02 Mar 2022 12:00:00 GMT
There are 843 properties for sale today in Milton Keynes; roll the clock back exactly a year, and the figure was 1,438 - so there`s been a drop of 41%. This drop is being dubbed ‘for sale board crunch`.

The ‘for sale board crunch` has left many prospective Milton Keynes home buyers stressed trying to find the right Milton Keynes property as the number of properties available to buy has dropped significantly.

I am sure you know people looking for their next Milton Keynes home, but when they see it on the portals (Rightmove, Zoopla, Boomin, OnTheMarket etc.) the properties are gone within days.

With demand at an all-time high, many Milton Keynes home buyers are in a state of misery as Milton Keynes house prices have grown in the last few years, forcing many of them to review their plans.

They are victims of the ‘for sale board crunch` in the Milton Keynes property market, the likes of which have not been seen since 2007.

Normally when there has been excess demand in the residential sales market, that frothiness has been taken care of by people moving into rented accommodation. However, the number of Milton Keynes properties available to rent is at a 15-year low.

So why is the Milton Keynes property market this way?

Demand for Milton Keynes homes has exceeded the number of properties for sale since the general election in December 2019. After years of long drawn out Brexit negotiations, homeowners and buyers were more confident about their move. Many Milton Keynes people who put their home move on hold in 2018/19 had more confidence to return to the market.

The first lockdown in the spring of 2020 did nothing to quell this pent-up urge, and since the late spring of 2020, the Milton Keynes property market has been on fire! The lockdown changed what homeowners were looking for in their Milton Keynes home. Proximity to public transport dropped down the wish list for buyers, and demand for apartments dropped. Whilst properties with larger gardens and rooms that could double up as home offices tended to be at the top of most Milton Keynes buyers` wish lists.

Around 36% more Milton Keynes properties have sold in the last 18 months than the long-term 20-year average.

Looking at the supply side of the equation, in the last five years, an average of 204,410 new homes per year have been added to the number of properties available in the UK. Also, 239,600 properties came back into the market when they became available after their owners had sadly passed away. Yet still, that isn`t enough. The country needs at least 300,000 new dwellings to keep pace with demand.

There is also another problem that has come to light with the cladding issue of apartments. Just over three-quarters of a million apartments have issues with cladding. Whilst these are being sorted out (which will take many years), they are essentially unsaleable unless a fire safety expert on these buildings signs them as safe.

These cladding issues prevent these apartments from coming onto the market (thus reducing the supply of properties to buy). It also precludes their owners from moving up the property ladder from their apartment to a house. Also, many first-time buyers who can save a bigger deposit or be gifted cash from the Bank of Mum and Dad are skipping the apartment as their first home and going straight for a house, thus intensifying the lack of larger properties for sale.

So, how long does it take to sell a Milton Keynes property now?
Milton Keynes Apartments – 62 days
Milton Keynes Terraced / Town House – 15 days
Milton Keynes Semi-Detached – 16 days
Milton Keynes Detached – 35 days

This means it is a seller`s market in Milton Keynes, empowering them to push up their asking prices in high demand areas. However, most sellers are also buyers, which means the advantage they have on selling their property is turned on its head when they come to buy.

Many Milton Keynes sellers prefer to find their future Milton Keynes home before putting their current home on the market. That is making the lack of properties on the market seem even harsher than it may otherwise be.

The ‘for sale board crunch` would be somewhat eased if Milton Keynes sellers put their property onto the market whilst they were hunting for their next ‘forever home`.

However, not all Milton Keynes homeowners are doing so, partially because they (wrongly) believe they will be made homeless if they find a buyer and can`t find another property to buy (remember, you are not legally committed to moving until exchange of contracts).

A big issue will be finding a suitable Milton Keynes home. We very much have a chicken and egg scenario. Some homeowners are waiting for the right property to come onto the market before they put their home on the market. This will probably mean that the Milton Keynes property will sell even before the photographs have been taken of your home.

Yet, many Milton Keynes homeowners are worried if they put their house on the market and it sells, they won`t be able to find another suitable home and thus be homeless.

Classic chicken and egg – so what do you do first?

There is another way of doing this. It`s a technique estate agents used to use before the internet, and it`s called `chain building`. Many Milton Keynes homeowners are contacting us to move home yet don`t want to be made homeless. What we do is slowly build a group of people in a chain over many months. It requires a lot of patience to build a chain downwards and upwards around you.

There is no cost to this and no legal commitment to go through. It can take six, even twelve months to build a chain of people who are prepared to wait for the chain to form.

Yet, everyone normally gets their next `forever home` by playing this long game.

Because if you don`t play the long game, build relationships with Milton Keynes Estate Agents (who can build these chains) and only rely on waiting for properties to appear on Rightmove, Boomin, OnTheMarket or Zoopla, you will be sorely disappointed.

According to national research from Denton House Research, 7 out of 8 people who viewed a house through an estate agent in 2021 were not on the mailing list of that agent before they viewed it.

That means all these Milton Keynes properties built on a chain builder (as above) will sell, yet won`t appear on Rightmove or Zoopla, meaning you will miss out.

You must get yourself on the mailing list of our estate agency (and other agents if they do this chain building) so you don`t miss out on your next forever home in Milton Keynes.

If you would like a chat about anything mentioned in this article, feel free to drop us a message or call.

#internationalwomensday2022

Tue, 08 Mar 2022 12:00:00 GMT
Imagine a gender-equal world. A world free of bias, stereotypes and discrimination. A world that`s diverse, equitable, and inclusive. A world where difference is valued and celebrated. Together we can forge women`s equality. Collectively we can all #BreakTheBias.
Celebrate women`s achievements. Raise awareness against bias. Take action for equality.

Milton Keynes Household Heating Bills Set to Rise to £105,738,729 in 2022

Wed, 09 Mar 2022 12:00:00 GMT
The energy bills of every Milton Keynes resident will rise in April as the price cap increases to account for the global increase in the cost of gas. Those not on the gas mains will still be hit as the UK uses gas to make 45% of its electricity.

So, what can Milton Keynes residents do to reduce their energy consumption and ultimately save money?

First, let`s look at the scale of the costs.
Considering the increase in energy prices from April, the combined energy bills for the whole of Milton Keynes come to…
· £105,738,729 for central heating
· £21,201,238 for hot water
· £11,521,761 for lighting

There are extra energy costs for washing, fridges, etc., yet I wanted to focus just on the home as this is a property blog.

Everyone`s bills will be around 50% more expensive in 2022 than in 2021, but it`s not too late for Milton Keynes people to take some quick steps to cut their energy bills and, at the same time, cut our carbon footprint.

Just over a quarter of the UK`s carbon comes from heating and lighting our 27.6 million homes, and each UK home produces 4.39 tonnes of carbon dioxide a year.

Upgrading the energy efficiency of UK homes is seen as a vital step to attempting to mitigate the issues of climate change, fuel poverty and our nation`s energy security.

So, what are some quick wins for Milton Keynes residents to reduce the energy bills on their homes, and how will energy efficiency play a more significant part in the value of Milton Keynes homes in the future?

1. By turning down the thermostat by 1 degree, the average annual saving would be £105.91 per home and each homes carbon dioxide would be reduced by an eighth of a tonne (it all adds up!).
2. Replacing your bulbs when you can with energy-efficient bulbs will, on average, reduce your lighting costs from £172 per year to £103 per year.
3. What time does your heating come on and off? Could it come on later and go off earlier?
4. Smart meters (which are installed for free) are estimated to help lower UK homes electricity use by nearly 3% and gas use by 2% … again it`s all margin gains.

These are just a handful of ideas. Check out the internet for others as it`s fascinating how much energy we use for overfull kettles, chargers left on and tech on standby etc.

Yet, these things will only scratch the surface… many of us will need to go further, especially Milton Keynes landlords, to retrofit our properties to make them more energy-efficient.

This is particularly important as in June the Government announced they would make the country carbon neutral by 2050, meaning Britain`s homes need some enormous retro-fitting to meet these ambitious climate targets.

In 2018, the Government required private landlords to improve the energy rating of their rental properties by prohibiting the rental of any property with an Energy Performance Certificate (EPC) rating of F and G (the lowest ratings). Yet from 2025, that will be increased to C for all new tenancies and 2028 for all existing tenancies (more on these EPCs below).

We don`t believe there is an appetite to mandate private homeowners to do this work, though you never know in the future.

So, how do you find out about your Milton Keynes home`s eco-credentials?

Since 2007, every new home that has been built, rented out or put on to the market in Milton Keynes has had to have an EPC, giving it a rating between A and G (rather like those stickers you see on fridges and washing machines).

A is the highest rating (i.e., best energy efficient and greener), and G is the worst efficiency rating.

55.6% of Milton Keynes homes are in that eco-friendly A to C energy performance band rating, compared to the national average of 40.1%

So, what next? Well, the Government will attempt to make the green revolution as painless as possible with technology.

In the future, we might have hydrogen central heating instead of mains gas; or have solar panels for electricity, all triple glazed windows and even ground source heating - sounds fanciful? Well, who would have thought some of the most wanted cars would be electric 20 years ago?

There is no doubt that the energy efficiency of our homes will rise in the coming years as the cost of fuel increases and people`s opinion on going green changes.

You don`t need to spend thousands of pounds to find out what you can do to make your property greener and cost less. Look at your EPC and it will tell you what small changes you can make to improve your Milton Keynes home`s energy efficiency rating and ultimately save yourself money. If you want to find the EPC rating of your Milton Keynes home, go to epcregister.com.

If you need an EPC, drop us a line as we know some great local energy assessors that can easily do an EPC on your property at a price that won`t cost the earth!

1 in 59 homes are sitting empty in the Milton Keynes area

Wed, 16 Mar 2022 12:00:00 GMT
A couple of weeks ago was National Empty Homes Week, so we thought we would find out how many homes are empty in the Milton Keynes area – the numbers surprised us, so we wanted to share our thoughts about them with you.

The latest Government statistics show that 813 properties in Milton Keynes have been empty for more than six months.

Homes that are left empty for an extended period can affect our locality and occasionally invite anti-social behaviour.

With a shortage of housing in the Milton Keynes area, these empty homes must be brought back into use to generate much-needed housing for local people.

As you can see in the first bullet point, some homes are only empty for a short period of time. Yet, those local properties that stand empty for more than six months and then deteriorate become a problem for our local community.

We appreciate there can be many genuine explanations why a property may be left empty for a long time. However, with council house waiting lists at high levels and the shortage of both properties to buy and rent in Milton Keynes, we must ask what is being done about this at Government level and how this could affect the Milton Keynes property market?

The collective value of these 813 long-term (6 months or more) empty houses in Milton Keynes are worth £240million.

This impacts the Milton Keynes housing market with a lack of properties coming onto the market for sale and rent. This results in house prices being pushed up, making it less affordable for first-time buyers to get on the first step of the housing ladder.

It`s a real shame that many local properties are empty for over six months when there is an increasing demand for accommodation, at a time when there`s such a competitive housing market.

So, one might ask if this issue of long-term empty properties is a new problem? Well, not really.

There were 597 homes long-term empty in Milton Keynes in 2010.

We know our local authority likes to work with property owners of empty homes to bring them back into housing stock as it helps with the housing shortage, even with the help of grants if improvement work is needed for the empty home. Yet, they could use enforcement action where a homeowner is incapable or unwilling to bring their property back into use.

So, what is the Government doing nationally? Homeowners are charged a 50% premium on top of their Council Tax if their home has been empty for two years or more. This can rise to a 300% premium if the property has been empty for ten years or more.

However, the bigger question is, why are all these homes in the Milton Keynes area being left empty?

The real answer is - they are not.

A handful of the properties belong to the local authority and are in poor condition because the tenant trashed the property.

Probate (where the person`s estate is put in order and passed onto the beneficiaries of the will) takes between six and twelve months. Most of these long-term properties are being modernised and renovated, whilst other Milton Keynes properties are part of a deceased estate. In other circumstances, some Milton Keynes homes have been left empty after the owner has been placed into a care home, yet there is no Power of Attorney to put the home onto the market.

There is no `one fix all` to the empty home syndrome in Milton Keynes.

Empty properties in Milton Keynes is not an issue that will sort the housing crisis we are suffering from.

The simple fact is the population is growing faster than the number of houses being built. We need to build more homes.

Whether that means council properties, housing association homes, private landlords or even owner-occupation housing the masses - that`s a massive question we could all talk about, day in day out until the cows come home.

So, tell us, what are your thoughts on the matter?

We`d love to hear your feedback.

Thu, 17 Mar 2022 12:00:00 GMT
Feedback & reviews do make a massive difference to our company. They help us understand what has gone well and celebrate success but can highlight areas we need to make amendments to give our clients the best service and experience.

If you`re able to spare a few minutes, we`d all be so grateful. It`s straightforward, scan the QR code and review away.

From all the team at MK Property, thank you.

Google Reviews - Google Reviews - https://g.page/r/CdFNJnfSs3AiEAg/review
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RENTAL YIELDS // HOW TO CALCULATE

Mon, 21 Mar 2022 12:00:00 GMT
When researching the best areas in Milton Keynes to invest in a property to let, you will be keen to find out the sort of rental yield you can expect to enjoy in return.

A high rental yield ensures that your rental income covers the property`s running costs, from mortgage repayments to wear and tear.

What is rental yield, and how is it calculated?
A rental yield refers to the value of rent you can expect to receive from your property in a year.
To cover all necessary expenses while allowing you to make a reasonable return on your investment, anywhere between 4-8% is considered a good rental yield.

The rental yield is calculated by dividing your annual rental income by your total investment, then multiplying this by 100. For example, if you buy a house for £250,000 and rent it for £950 per month, your rental yield is 4.5%.

How Will Rising Inflation Affect the Milton Keynes Property Market in 2022?

Fri, 25 Mar 2022 12:00:00 GMT
The UK is currently experiencing its highest inflation rate since the early 1990s. This increase in prices has primarily come about by the combination of an increase in demand for goods and services from consumers following lockdown last year together with global supply chain disruptions.

Most economists weren`t too concerned about this increase in the inflation rate as the very same thing happened in the early 1990s following the Credit Crunch with a similar rise in demand and supply chain issues. Thankfully, back in the early 1990s, inflation returned to lower levels quite quickly. However, the situation in Eastern Europe now could change matters.

So, let me look at all the factors and what it means for the Milton Keynes property market.

The crisis in Eastern Europe has sparked even further rises in crude oil (which diesel and petrol are made from), gas and grain prices as pressure on supply chains around the world increases.

In my previous articles, we suggested UK inflation would rise to around 7% in the spring and drop back to 5% in the autumn and as we entered 2023, be approximately 3% to 4%.

Yet, with these issues, inflation could rise to 8% to 9% by late spring and still be around 6% to 7% in autumn, well above the Bank of England`s target of 2%.

With Milton Keynes wages rising at only 3% to 4% and inflation at 7%+, Milton Keynes household incomes, in real terms, will fall.

This is because ‘real` UK household incomes characteristically have been the most consistent lead indicator of growth (or a drop) in house prices. This is because growing inflation erodes the value of money you earn, which reduces its buying power. When the cash in your pocket has a lower spending power, people tend to spend less when they buy (and rent) a home (and vice versa).

Next month, Income Tax thresholds will be frozen, and National Insurance contributions are increasing. Collectively, all these issues will create a drop of around 2% to 2.5% in the real disposable income of Britain`s households in 2022 (real disposable income - somebody`s take-home wages after tax and then the effects of inflation are considered).

Will Milton Keynes people be more anxious to spend their money?

With less money in people`s pockets, people`s inclination to spend the money they do have could also be curtailed. People`s savings are at an all-time high, yet many will decide to sit on the cash, instead of spending it, especially as consumer confidence has dropped to minus 26 on the GfK index (whatever that means – but in all seriousness though - more on that below).

All this can only mean there is going to be a house price crash.

It`s all doom and gloom! …Or is it?

Our hearts go out to people caught up in the awful humanitarian crisis in Eastern Europe. Yet, we respectfully need to put that to one side for just a moment for the purpose of this article.

This blog is about the Milton Keynes property market, and Milton Keynes people want to know what will happen to the Milton Keynes property market.

In the first half of the article, we looked at the impending fall in real disposable incomes of 2% to 2.5% in 2022. We appreciate it`s going to be tough for many families in Milton Keynes. Yet, it is always important to consider what has happened in previous times.

1982 – a drop of 2.3% in real disposable income
1992 – a drop of 3.7% in real disposable income
2008 – a drop of 5.8% in real disposable income

Yes, it`s going to be tough, yet we got through 1982, 1992 and 2008 – and so we shall in 2022/23.

Next, the price of petrol is very high compared to a year ago.

The average price of unleaded petrol is £1.51/litre today, quite a jump from the £1.21/litre a year ago. But here is an interesting fact, petrol was a lot more expensive (in real terms) in 2011 than today. In TODAY`s money, a litre of unleaded petrol in 2011 would be the equivalent of £1.79/litre. We have some way to go before we get to those levels – and again, the Milton Keynes economy (and property market) kicked on quite nicely after 2011.

What are Milton Keynes people spending on their rent and mortgages?

Housing costs - owner occupiers were spending on average 17.3% of their household income on mortgages in 2015, yet in 2021 this had risen, albeit to 17.7% - not a huge increase.

Council house (social) tenants have seen a drop in their rent from 29.2% in 2015 to 26.7% in 2021, whilst private tenants from 36.4% in 2015 to 31.2% in 2021.

Interesting that private tenants are proportionally 14.29% better off in 2021 than in 2015.

How we spend our money - the average UK home spent 4.2% of their household income on energy in 2021, and that is due to rise to 6.3% after April (and probably 7% in October). Yet, as a country, we spend 9% of our income on restaurants and hotels and 8% on recreation and culture. As with all aspects of life, it will mean choices, and maybe we will have to forego some luxuries?

Just before we move on from this aspect of the article, again we appreciate we are talking in averages. Many people with low incomes suffer from fuel poverty and they will find the increases in energy prices hard - our thoughts go out to you.

Interest rates - higher inflation is generally brought under control using higher interest rates, meaning mortgage payments will be higher.

First, 79% of homeowners with a mortgage are on a fixed rate, so any rise won`t be instantaneous. Yet, there will be a bizarre side effect from the issues in Eastern Europe. Surprisingly, though the current situation in Eastern Europe, by its very nature, will bring greater UK inflation, it will also probably defer the Bank of England raising interest rates. This means mortgage rates won`t increase as much as the bank won`t want to exacerbate any pressures to the UK economy in 2023/24 caused by the conflict.

The stock market had priced an interest rate rise to 2% by the end of 2022. We suspect this will now be no more than 1% to 1.25% by Christmas, slowly going up in quarters of one per cent every few months. The crisis in Eastern Europe might even come to be seen as a defence for higher inflation throughout 2022, all meaning everyone`s mortgage will be less.

Next, looking at Consumer Confidence Indexes - these indexes are fickle things. We prefer to look at the Organisation for Economic Co-operation and Development Consumer Confidence Index as it has a larger sample range and a longer time frame to compare against. Looking at the data from the mid 1970s, the drop in consumer confidence is big, yet nothing like the drops seen in the Oil Crisis of the mid 1970s, Recession of the early 1980s, ERM crisis of 1992 and the Global Financial Crisis of 2008/09. Also, when compared to the other main economies of the world (G7), the UK has always bounced back much more quickly from recessions when it comes to consumer confidence.

What about house prices in Milton Keynes in 2022/23?

Increasing energy prices, rising inflation, an increase of sanctions, and a probable drop in consumer confidence and spending in the aftermath of the conflict will knock the post-pandemic recovery globally, which will lead to a recession around the world, including the UK.

A recession is when a country`s GDP drops in two consecutive quarters. For the last 300 years, there has been a direct link between British house prices and GDP - (i.e. when GDP drops, UK house prices fall). Yet in 2020, the British GDP dropped by nearly 12%, yet house prices went the other way.

But let`s look at what would happen if Milton Keynes house prices did drop by the same extent they did in the Global Financial Crisis of 2008/09.

House prices in Milton Keynes dropped by 16.4% in the Global Financial Crisis, the biggest drop in house prices over 16 months ever recorded in the UK.

The average value of a property in Milton Keynes today is £295,424.

Meaning if Milton Keynes`s house prices dropped by the same percentage in the next 16 months, an average home locally would only be worth £246,974.

On the face of it, not good - until you realise that it would only take us back to Milton Keynes house prices being achieved in late 2016 - and nobody was complaining about those.

Yes, that will mean if they do drop in price, the 9.1% of Milton Keynes homeowners who have moved home since late 2016 would lose out if they sold after that price crash. But how many people move home after only being in their home for a few years? Not many!

The simple fact is that 90.9% of Milton Keynes homeowners will be better off when they move if house prices crash.

And all this assumes there will be a crash.

The simple fact is, the circumstances of 2009 that caused the property crash are entirely different to 2022 (no lending by the banks, higher interest rates and increasing unemployment compared to today`s increased lending, ultra-low interest rates and low unemployment environment).

We do believe with all that`s happening in the world we might see a rebalancing of the Milton Keynes property market later in 2022 and could see the odd month with little negative growth in house prices, yet it will be nothing like 2009.

The expected fall in household spending could be counterbalanced by UK businesses` plans to invest more in their businesses (with last year`s tax breaks on investing), which will create even more jobs.

Who knows what the future holds? These are just our opinions - what are yours?

Milton Keynes Homeowners Unable to Sell

Wed, 30 Mar 2022 12:00:00 GMT
You would have needed to have been living in a cave since the end of Lockdown No.1, not to realise the property market has been on fire in Milton Keynes (and the UK as a whole) for the last 18/20 months.

It has been very much a seller`s market, especially in 2021. Yet as we enter the second quarter of 2022, we have noticed a slight rebalancing of the Milton Keynes property market, more towards buyers, something that is good news for everyone (sellers and buyers) locally.

In 2020, it took on average 61 days from the average Milton Keynes property appearing on the property portals (i.e. Rightmove, Zoopla etc.) to the property going sold (STC).

Interesting when compared to the national average of 72 days in 2020. Yet, last year, this was reduced to 41 days in Milton Keynes (51 days nationally).

So, what`s the issue with the Milton Keynes property market being on fire?

Well, that was last year, and things have changed slightly since.

Of the properties for sale in Milton Keynes, 24.9% of houses have been on the market for more than 12 weeks.

That doesn`t sound a lot, yet that is an eternity in this market!

So, why are there so many properties on the market in Milton Keynes still for sale after all this time … it usually comes down to one thing … the practice of `overvaluing`.

So before we explain what overvaluing is, let us give you some background.

Many agents (not just ourselves), in 2021, were achieving top prices for Milton Keynes property with multiple offers becoming the standard. The property they were selling was only available to buy for days before the owner obtained multiple offers that were not only at a satisfactory level, yet more than they ever dreamed likely.

Although this was great news for Milton Keynes homeowners, this caused fewer homes to come on to the market in the last six months in Milton Keynes, as people were afraid to put their home on the market without having a property to buy.

With fewer properties coming onto the market, some estate agents have become more and more desperate to get a larger slice of this smaller property market. It has seen an unwelcome side of the estate agency profession, the estate agency practice of ‘overvaluing`.

While ‘overvaluing` is nothing new, the custom has been generally limited to a small number of estate agents. Yet now, it`s become more prevalent and creates uncountable distress and pressure for some Milton Keynes homeowners.

Many Milton Keynes homeowners want to sell quickly to get the property of their dreams. Yet, in many cases, when they do put their property on to the market, they don`t sell quickly enough because of this ‘overvaluing` (even with the fantastic current property market conditions).

To give you an idea of the issue … 64% of Milton Keynes homes put on the market in the last 30 days have not sold.

There are hundreds of Milton Keynes families having their dreams dashed by `overvaluing.`

Therefore, let us look at exactly what overvaluing is, why it`s on the rise and most importantly, the harm overvaluing causes to homeowners like yourself.

You would think the most important thing in estate agency is all about finding the best buyer for your home, at the best price, who can make the move with the least amount of hassle.

To us it is, and to many other Milton Keynes estate agents, it is as well. Yet, to some agents, sales aren`t the essential objective. Instead, it is having a vigorous catalogue of properties to sell to generate more future leads.

Deprived of an endless number of new properties for sale, the enquiries estate agents receive will significantly drop, leaving them high and dry without any buyer (or seller) leads, the lifeblood of estate agents.

Therefore, some (not all), but some estate agents will feed on a homeowner`s appetite to get the highest possible price for their Milton Keynes home by giving them an over-inflated suggested asking price to market their property at (i.e. ‘overvaluing`).

If one estate agent can get you an extra £30,000 for your Milton Keynes home, you will take it, won`t you?

The suggestion of pushing the asking price of your Milton Keynes home for 10%, 15% even 20% could be seen by many as a temptation too good to miss. Yet once you are on the market, the agent is trained to slowly get you to reduce your asking price over a lengthy sole agency agreement.

The problem is that the home of your dreams might have sold by the time you reduced your price in 3 months. Also, Which reports in 2017 and 2019 proved you ended up getting less for your home when it did eventually sell (which means you lose money) and finally, the agents know homeowners perceive it`s a hassle to swap agents (which it isn`t).

But estate agents only get paid when they sell the house; why do they overvalue?

Would it surprise you that some estate agency chains pay their staff a commission when they put the property on to the market, not when it sells? So, their team overinflate their suggested asking prices to get that commission.

Over the last 18 months, with the rising property market, there has undoubtedly been a valid reason for pushing the envelope on the asking price. Yet, if every house like yours is on the market or sold subject to contract at £300,000 to £320,000, yours isn`t going to achieve £355,000, let alone £375,000 – even in this market.

With 64% of Milton Keynes homes still for sale after a month, the market is starting to level out and if you are keen to sell, then let me give you some advice.

Research has shown that if the asking price is initially set too high, it will be ignored by people surfing Rightmove and Zoopla.

(Come on, be honest – you have done that yourself haven`t you?)

When the property is eventually reduced because it has the stigma of being on the property market too long (begging the question from potential buyers that there may be a problem with the property itself hence no interest?), often when it does eventually sell, it will sell for less than what it would have done if it were priced correctly from day one (as per the two reports from Which in 2017 and 2019).

Of course, on the other hand, setting the asking price below its market value means potentially leaving money on the table needlessly – hence the need for a good agent.

Putting your Milton Keynes home or buy-to-let investment up for sale at the right price from the beginning is the key to selling within the best time frame and for the best price to a serious and motivated buyer.

Ask a handful of estate agents to value your home, ask them to back up any valuation of your Milton Keynes home with cold hard comparables of similar properties to yours.

Find your comparables by searching ALL the property portals (i.e. Rightmove, Zoopla, Boomin, OnTheMarket).

If you only take away one thing from this article, when you search the portals for comparables, make sure you include under offer/sold STC properties, as that will triple the comparable evidence.

Thus, by doing your homework and then working with a dependable, trustworthy and experienced Milton Keynes estate agent, who will help to ensure that your Milton Keynes property is put on the market to get you, the homeowner, the best price from day one without over cooking it so you don`t lose out, you will be just fine.

These are our thoughts, let us know if you have any yourself.

Why Does it Take 120 Days to Get the Keys When You Buy a Milton Keynes House?

Wed, 06 Apr 2022 12:00:00 GMT
Did you know that 2,326 properties have sold in the Milton Keynes area in the last 12 months?

Nationally, the average length of time it takes from agreeing the sale of a property to the keys being handed over is 111 days (down from 117 days last year), yet in Milton Keynes, we are above the national average at 120 days.

So why does it take just over 17 weeks, when all that is required is the lawyers to look at some paperwork and get a mortgage? Also, what can Milton Keynes homebuyers and sellers do to speed this up?

The legal process to buy and sell a UK property is called conveyancing. The conveyancing system itself hasn`t really changed in hundreds of years. After the housing market was reopened after the first lockdown in the spring of 2020, the property market returned with a bang, helped on with the stamp duty holiday.

In 2021, the number of properties selling in Milton Keynes in some months went up massively, e.g., by 96% June 2021 and by 65% in March 2021. Many conveyancers and solicitors had to sort the legal paperwork out for upwards of 120 to 150 properties each at any one time.

This glut of sold properties caused by the pandemic that needed legal work to be sorted exacerbated a problem already present in the conveyancing industry.

For years conveyancers have complained of overwork and underpay. Conveyancing is seen as the Cinderella of the legal profession. This workload was the straw that broke the camel`s back, making many conveyancers leave the profession and go into better paid legal work like corporate work.

Also, the legal process of conveyancing has built-in inefficiencies, and the conveyancing profession has been relatively slow to innovate. However, there are some excellent tech solutions that are being slowly rolled out across the industry to make the process more efficient and effective.

What can Milton Keynes home buyers and sellers do to speed up their property sale?

If you are buying or selling your Milton Keynes property as we speak, you won`t be able to wait for the conveyancing profession to be revamped, yet you can be as pre-emptive as possible to get your Milton Keynes house sale through earlier.

In a nutshell, ensure you have all the paperwork sorted on your Milton Keynes home before you put your home on the market. Next, get the ball rolling on your mortgage. If you receive some paperwork, read it, check it, sign it and send it back in a day, do not leave it a week; finally, always communicate frequently with your estate agent and conveyancer.

When you instruct a solicitor, most will request money to start the ball rolling for searches and disbursements. They won`t lift a finger until that is paid.

You will have to prove who you are in the conveyancing process, so your conveyancer will ask you to show them proof of ID and address. If you are buying, they will need to prove you have the funds/deposit to buy the home (and if your deposit is coming from family/friends, then they are required to write a letter to that effect).

How can the house buying and selling process be improved?

A couple of years ago, the Government set up the Home Buying and Selling Group to find the answer to this problem. Chaired by the well-known property guru Kate Faulkner, it is looking at an amalgamated Seller`s Information Pack (SIPs) and an IT-based single platform to share and communicate that SIP between buyers, sellers, their conveyancers, the estate agent, mortgage providers and brokers and finally surveyors.

The advantage of the SIP is that it can be created before the buyer has been found, meaning property buyers would be more knowledgeable when making an offer. Also, once the sale has been agreed upon, the SIP could be sent straightaway electronically to the buyers` legal team (from the seller`s legal team) to start the procedure of asking for searches and raising inquiries.

The bottom line is the conveyancing process is not fit for purpose in the 21st century and change is on the horizon.

So, before the SIP becomes mandatory, there are things everyone can do to ensure they get the home of their dreams quicker.

We recommend the seller, us as the agent and the conveyancer start to liaise with each other to get the key information on the property being sold as quickly as possible. Then once a buyer is found, we believe it is vital we, as the agent, regularly communicate with all the stakeholders in the chain to ensure everyone is playing their part to expedite the sale.

In the future, utilising technology and every agent/conveyancer preparing information upfront with the SIP will drastically reduce the time it takes between agreeing a sale and the keys/monies handed over.

The conveyancing process will have to change to meet the needs of the 21st century, but how long that will take is the big question.

If you would like to chat with us about how we do things differently to ensure your property not only gets the best price and how we do all we can, as agents, to expedite a smooth sale for your Milton Keynes property, do not hesitate to pick up the phone.

76% Drop in Milton Keynes Council Houses in the Last 40 Years

Wed, 13 Apr 2022 12:00:00 GMT
The ability of local authorities to build council houses came into law in July 1919 with the 1919 Housing and Town Planning Act. It was one of the most important pieces of domestic legislature passed after WW1 and was the first time in the UK that a nationally public funded system of providing homes was made for the masses. It was paid for mostly by central government and provided by local authorities (councils) and public utility societies (which in later years became today`s housing associations).

Between 1919 and 1979, 6.94 million council houses were built.

Just over 1 million council houses were built between 1920 and 1939, whilst 5,804,150 council houses were built between 1946 and 1979. This is compared to 4,533,440 private homes and 260,910 housing association properties in the same time frame (`46 to `79).

So, between 1946 and 1979, the council house was the dominant force in British housing. But that all changed in 1979!

Many people believe it was Margaret Thatcher was the architect of allowed the sitting tenant of a council house to buy their home. Interestingly, council house tenants have been able to buy their council house from as early as the mid-1930s, albeit with little or no discount. Also, as late as 1977, the Labour Housing Minster published a Green Paper extolling the virtues of homeownership and council tenants being able to buy their home at a discount.

But after the General Election of 1979, the new Tory government drafted the Housing Act 1980, which gave the Right to Buy, which became law in the autumn of 1980. Then things really took off!

This new law established a right for most council tenants who had been in their home for three years or more to a discount. The discount started at 33% and increased by 1% for each extra year, up to a maximum of 50%. If the tenant sold the house within the first five years of ownership, a prorated repayment of their discount was required.

Between 1980 and 1989, 970,558 council houses nationally were sold at a discount.

Yet the issue was, when a council house was sold, it took that house out of the council`s portfolio for future generations. From the start, there were limitations on local authorities` use of monies from the council house sales as most of it had to be given to central government in London, meaning only 390,560 new council houses were built between 1980 and 1989. Looking at the numbers locally …in 1981, there were 19,286 council houses in Milton Keynes, today it`s 10,801.

No wonder the country has a housing crisis … yet as our regular readers know - the devil is in the detail … and that devil is the humble housing association.

The Tory General Election Manifesto in 1979 had proposed the rights for both council house and housing association tenants to buy their own house under the Right to Buy scheme. The Conservatives argued housing associations, who obtained government funding, should be subject to the same Right to Buy proposals as councils. The Government won the vote in the Commons, yet lost the vote in the Lords, meaning housing association tenants could not buy their homes at a large discount.

At the time, there were only 400,000 housing association properties in the country, so the Government were not that worried. But the significance of housing associations developed in the 1980s and beyond as they were allowed to borrow money from the private sector.

Between 1949 and 1979, the average number of housing association properties built annually was 8,524. Since 1979 to today, it has been 25,062 per year (and 31,606 per year in the 2010s).

Also, the Government encouraged councils to transfer their remaining council houses to housing association schemes from 1986. The advantage to these ‘stock transfers` was the Government allowed housing associations to access private funding to improve their existing properties and buy new ones (good news for existing tenants complaining that the local authority never upgraded their homes).

Moreover, the Tory Government liked stock transfers, as it allowed them to dismantle council housing from the inside. Interestingly, Labour expanded the ‘Stock Transfer` process in 1997 and further reduced the eligibility for council tenants` Right to Buy, meaning the number of council tenants exercising their Right to Buy declined considerably.

Meaning today, even though the provision of council housing has dropped like the proverbial stone … the number of housing association properties in Milton Keynes has increased from 532 in 1981 to 6,962.

So, how has this changed the dynamic of the Milton Keynes property market in the last 40 years?

Would it surprise you to learn that the number of people who own their own Milton Keynes home today is very similar to what it was 20 years ago before the property boom started? It`s just that even though we`ve had a large drop in the number of council houses and an increase in the number of housing association properties, the number of people owning their own home has remained relatively the same (in some areas of Milton Keynes this has actually increased), the significant issue is the growth of the private rented sector.

It`s almost as if people who used to rent from the council now rent from a private landlord.

The question is, is it right for private individuals to make money from tenants who rent from them as opposed to the local authority? Or are private landlords providing better types, choices and quality of accommodation for these tenants, albeit at a higher rental rate than if they rented a council house?

We really do believe if it wasn`t for the growth of the buy-to-let landlord, which began in the early 2000s, we would have an even bigger housing crisis on our hands than the one we have currently.

Both local and central government have had their hands tied behind their backs since 2008 with a lack of funding, and it`s the humble private landlord who has stepped up and supplied in excess of 2.3million additional rental properties since 2001, housing nearly 5,520,000 Brits. These landlords have saved the day since the big council house sell-off in the 1980s!

What are your thoughts on this matter?

Did you know there are 18,768 Terraced Houses in MILTON KEYNES?

Wed, 20 Apr 2022 12:00:00 GMT
The terraced house is one of the most familiar styles of home in Milton Keynes (and the UK as a whole).

So, what is it about the humble terraced/townhouse us Brits love so much? In this article, we will look at the history of the terraced house, how it relates to Milton Keynes and what the future holds for terraced homes.

A terraced house is a property built as part of a continuous row of three (or more) properties in a similar and uniform style.

The reason the British call them `terraced houses` and not `row houses` came about because 18th century British architects borrowed the phrase `terrace` from `terraced gardens`. Terraced gardens were known for their uniform nature (in looks, style and height etc.), so the architects decided to name them the same way as opposed to a ‘row house`. In fact, in most countries, they are called `row houses`.

The terraced house originated in the Low Countries of Europe in the late 1500s.

Terraced houses were first built en-masse in the UK after the Great Fire of 1666 with the rebuilding of London.

They became fashionable for the landed gentry in the early Georgian era with chic and stylish terraces appearing in London`s Mayfair and Bath with its Queen Square (the forerunner of the famous Royal Crescent) and were sometimes built around a garden square.

However, it wasn`t until the early 1800s that the terraced house turned out to be the solution to the increasing population of the towns as more and more people were attracted to towns and cities for work.

The terraced house fell out of favour with the upper-middle classes in the late Victorian age (1870`s onwards) as they wanted more privacy and space. They moved to live in detached houses or semi-detached villas, as the terrace house had started to become associated with the lower-middle and working classes.

With all these terraced houses being built, their quality of construction and design dropped as builders tried to squeeze more profit. The biggest issue was that most of the terraced houses built in the early to mid-Victorian age (1840s to 1870s) were made back-to-back with no rear garden, causing unsanitary conditions. Therefore, the Public Health Act of 1875 was introduced to regulate the building of terraced houses with design and standards.

These new building standards in the Act improved the terraced house`s ventilation and, more importantly, required the house to have a toilet (frequently built outside). To meet these new building standards, the designs of these new houses created the well-known landscape of ‘grid` streets lined with two-storey terraces serviced by a pedestrian path between them, the name of which is a hotly debated topic. The various names for the pathway include alleyway / jitty / cut/ ginnel / snicket / passageway / ten foot / five foot/ witchel / lonnin / vennel.

As a Milton Keynes resident, why not say what you call them in the comments?

As we entered the 20th Century, the terrace house continued to be popular, albeit with some new architectural additions.

The advent of Arts and Craft architecture with stain glass windows, Tudor style cladding, ornate porches, and elaborate chimney stacks.

After the First World War and the introduction of the Housing and Town Planning Act 1919 (which made local councils build council houses), the Victorian terraced rapidly became associated with overcrowding and slums (especially those back-to-back terraced houses built before 1875). Many of the back-to-back terraced houses were knocked down between 1930 and 1960 in what is known as the slum clearances.

Private builders started building the iconic suburban semi-detached houses with more extensive gardens, and local authorities decided to build high-rise blocks after World War II. Yet after the partial collapse of Ronan Point in 1968, the popularity of high-rise tower blocks waned.
Since the early 1990s though, the terraced house has steadily come back into favour as building land prices have increased by 322% in the last 30 years.

Many private builders have started to build modern three-storey townhouses in rows of five to seven. This terraced `townhouse-style` allows three and four bedrooms on a land footprint that would have usually only accommodated a smaller two-bed property.

So, let`s look at some interesting stats on Milton Keynes terraced houses.
· There are 18,768 terraced houses in Milton Keynes (broken down as 10,036 privately owned terraced houses, 5,147 terraced council houses and 3,585 in the private rented sector)
· 19.1% of terraced houses in Milton Keynes are in the private rented sector, which is in line with the national average of 19.1%
· The most expensive terraced house in Milton Keynes ever sold was on Silver Street Newport Pagnell, Milton Keynes for £700,000 in 2017
· The cheapest Milton Keynes terraced house sold in the last two years was on Mahler Close, a one-bed terraced house for £52,500
· Terraced houses in Milton Keynes sell for an average of £241 per square foot

Hopefully, you found that thought-provoking?

So, why is the terraced house, be it a red brick Victorian house or a more modern three-storey townhouse, still popular today in Milton Keynes?

They are typically well built, cheaper to maintain (especially the older terraced houses), comparatively spacious, and in good locations. Many terraced houses have been improved and extended through the inventive use of rear gardens/yards and converted roof spaces; their unpretentious design remains adaptable enough for 21st century living; what isn`t there to like about them?

HOW TO CLEAN DECKING

Thu, 21 Apr 2022 12:00:00 GMT
As the weather warms up, we`ll all want to spend more time in our gardens making now the perfect time to get things spic and span. First up is the deck! If you`re fortunate enough to have decking, Follow our easy step-by-step guide on how to clean decking to get your outdoor entertaining zone ready for the months ahead.

Whilst summer hasn`t quite set upon us, now is a good time to clean the decking. An annual wash during the winter months can breathe new life into any garden decking idea. Preserving the integrity of the wood and ultimately help to prevent costly repairs. Click here: https://bit.ly/GardenGuide_Decking

Well Done Team MK Property

Fri, 22 Apr 2022 12:00:00 GMT
A lovely way to finish the week is by receiving this beautiful Hamper of goodies from Jonny Lo & Tommy Yau at Yoko Property.

From all the team at MK Property, we`re all so pleased we`ve been able to help you and look forward to many years working together.

Homeownership has rocketed in MK.

Tue, 26 Apr 2022 12:00:00 GMT
With the newspapers full of news about the death of homeownership and the growth in Generation Rent, it must surprise many (as it did with us) that the number of homeowners in Milton Keynes has grown.

To give some context …the number of homeowners in Milton Keynes dropped between 2011 and 2017 by 275 households, yet between 2017 and 2021, that grew by 2,700 households.

So, what is behind this growth in homeownership and is it a good thing?

Politicians love it when homeownership rises, as they believe owning a house turns individuals into model upright citizens. It was one of the critical reasons for the council house sell-off in the 1980s.

Yet the hard data to back this up is unexpectedly slim, whilst other studies hint that homeownership has some harmful costs to the economy, such as reduced entrepreneurial spirit and the disinclination to move home to find work.

However, increasing homeownership may be a good foundation for Britain`s economic recovery after the last few years. Homeowners have a greater propensity to live in single-family unit homes like townhouses and semi-detached houses.

A greater demand for more single-use homes supports the construction of such dwellings (instead of other types such as small apartment blocks or Homes of Multiple Occupation). This is important because single-family unit homes tend to be better build quality, have more extensive gardens, and have more local amenities.

So, what are the sort of numbers we are talking about in Milton Keynes?

In 2017, there were 35,175 Milton Keynes owner-occupied homes. By 2021, this had grown to 37,876 Milton Keynes homes.

This means homeownership in Milton Keynes has risen from 50.74% of the households in Milton Keynes in 2017 to 52.6% in 2021, a proportional increase of 3.7%.

So, what is behind this growth in homeownership?

1. 95% mortgages have been readily available at low-interest rates now for over a decade. In 2017, first-time buyers also got an exemption from stamp duty. This created a perfect storm of demand, which caused the number of Milton Keynes first-time buyers to rise.
2. Whilst the rise in homeownership in Milton Keynes precedes the pandemic by a couple of years, another factor to the growth relates to the last property market recession of 2008/9 (the Credit Crunch). Between 2009 and 2012, many Milton Keynes homeowners found themselves unemployed and still had to pay mortgages at 6% to 8%. Some homes were repossessed or some had to sell their home at a low price to unshackle themselves from their high mortgage costs. This development, nevertheless, took many agonising years to play out, reducing the homeownership until the middle of the last decade.
3. People`s views on the way they live have altered during the lockdowns. In a sphere of stay-at-home instructions and social distancing, the peace of mind of homeownership gives Milton Keynes homeowners the security of tenure.
4. Finally, there has been a long-term change in the demographics of the UK. Millennials (currently aged between 26 and 41) are less likely to be homeowners than their Baby Boomer parents were at the same age. Yet, the British millennial generation is now entering its prime home-buying period as they have saved their deposit and are more likely to inherit money from their grandparents. (The average age of a first-time home-buyer in the UK is 33 compared to 26 in the mid-1990s).

So, the final question has to be …how much further could homeownership go in Milton Keynes?

The biggest hurdle could prove to be the supply of available homes.

Many `accidental landlords` have been selling their properties recently, which first-time buyers have bought. Accidental landlords put their own homes up for rent in the early to mid-2010`s because they could not sell. Now they have been motivated to cash in on the higher Milton Keynes house prices in the last couple of years, which increased the supply of properties to buy for owner-occupation.

Also, the number of houses on the market in Milton Keynes and nationally available to buy from existing owner-occupiers is starting to grow (nationally up from 355,700 in December 2021 to 431,000 in March 2022). This is giving greater confidence to other Milton Keynes homeowners too scared to put their homes up for sale because they are concerned they would not be able to find anything. Things are starting to change in that regard.

Also, there are signs of a recovery in British new home building as the number of new housing starts in 2021 hit the highest level since the financial crisis of 2007. Yet with a steady increase in Milton Keynes landlords returning to the market in the last few months, this tide will turn.

Milton Keynes`s homeownership could continue to swell for a while yet!

P.S. What does this mean to the private rented sector in Milton Keynes? Come back next week as I give some fantastic insights every Milton Keynes landlord will want to read to ensure they remain profitable in the Milton Keynes buy-to-let market.

40 easy ways to save money at home

Thu, 28 Apr 2022 12:00:00 GMT
With energy prices and National Insurance contributions ramping up, it`s never been more important to find ways to save money at home. Mounting bills can be intimidating. But there`s a lot of truth in the old adage, ‘save the pennies and the pounds will look after themselves`. If you follow even half the tips we`ve listed below, you could soon find yourself recouping the costs of service price hikes.
Click here: https://bit.ly/40WaysToSaveMoney

Not long now, Please spare whatever you can. Every penny does make a massive difference to this fantastic charity.

Tue, 03 May 2022 12:00:00 GMT
Danielle and her husband Craig Withers-Brown have chosen to be put through their paces and signed up for the "Rat Race 2022" - a 20 miler course rammed full of obstacles with over 200 challenges waiting to be completed; the mud crawl, tyre climb, hamster wheels, floating planks are a few of what they will be facing.

It sounds exhausting just writing about it!

Every sick child needs a smile. Please help us raise as much as we can for this fantastic charity!

Please donate what you can to this fantastic local charity - https://bit.ly/3K7Qvt3

What can I do if I`m struggling to pay my mortgage?

Thu, 05 May 2022 12:00:00 GMT
If you`re finding you can no longer afford your mortgage repayments, there are options out there that could help you through a difficult time.

With the cost of living rising, some homeowners may find themselves struggling to meet their monthly mortgage repayments. Here`s what to do if it`s happening to you.
Click here: https://bit.ly/StrugglingToPayMyMortgage

Fantastic effort Danielle Withers-Brown

Mon, 09 May 2022 12:00:00 GMT
If anyone would still like to sponsor this fantastic local charity, Samuel`s Charity, you can head over to - https://www.totalgiving.co.uk/mypage/wbsratrace.

Damp and mould – when do YOU deal with it?

Tue, 10 May 2022 12:00:00 GMT
The effects of damp and mould are a common tenancy issue that can easily result in a deposit dispute. However, resolving issues at the right time can help avoid frustration at the end of the tenancy. The Deposit Protection Service (DPS) encourage landlords to talk openly with their tenants throughout the tenancy and take a common sense approach to the subject instead of broaching it at the end — and risk falling into a dispute.

To help make it easier for you to avoid damp and mould disputes, they`ve created four key guidelines that you can use with your tenants to manage problems together:
1. Regularly remind your tenants to immediately report if the home has damp or mould
This will give you the chance to remedy or improve the situation and improve tenants` comfort in the property. A delay in fixing the problem may lead to greater costs.
2. Dispassionately discuss the causes of damp and mould
Be reasonable about how the change in condition of the property was caused. You may require tenants to change behaviour but be prepared to listen to their side of the story and understand their viewpoint.
3. An information leaflet might not be appropriate
We`ve seen cases where landlords or agents who noticed evidence of damp during an inspection and simply handed the tenant a leaflet on ventilation, heating and avoiding condensation without first checking the cause. Always investigate to ensure any underlying cause is identified
4. Act if the issue is your responsibility
While some damp and mould problems can be solved by tenants` adapting different behaviour, for example, improving ventilation to rooms with tumble driers, landlords should recognise when the issue needs their involvement to resolve, such as structural improvements to the property.
5. Look for the signs of damp at your mid-tenancy inspections
Whilst it`s important to encourage your tenants to report issues, not all tenants can be relied upon. Use your mid-tenancy inspections to look for the signs of damp, such as high levels of condensation on windows or tell-tale black marks on walls and window sills.

Matt Trevett, Managing Director at The DPS, says: `The circumstances that lead to damp or mould developing can vary: if the problem is structural, the onus may be on the landlord to find a solution but, if the issue is caused by tenant behaviour, the tenant(s) may need to change their approach.

`We`d always encourage tenants and landlords to discuss how best to address damp, mould or any other issue in order to find a solution together rather than waiting until after renters move out.`

Milton Keynes Rental Homes Nightmare

Wed, 11 May 2022 12:00:00 GMT
There has been a rise in demand for rental properties and an 8.9% fall in the number of Milton Keynes private rented properties, which has caused Milton Keynes rents to rise by 5.8% in the last year, a new all-time high.

The National Residential Landlords Association asked the respected economics think tank Capital Economics, to carry out research on the UK rental market. It found that if the current trends in the property market in terms of growth of the population, Brits living longer, the lack of new homes building, the reduction in social housing (aka council housing), then demand for homes in the private rented sector needs to increase by 227,000 homes per year.

So, based on those numbers, Milton Keynes needs to have an additional 613 private rented properties per year.

The problem is the number of private rented properties in Milton Keynes has reduced from 16,168 in 2017 to 15,305 in 2021, a net loss of 863.

So, why has supply of private rented homes in Milton Keynes reduced?

1. Section 24 Income Tax
Section 24 was introduced in 2017 to level the playing field on the taxation of property between homeowners and landlords. Section 24 stops landlords from offsetting their buy-to-let mortgage costs against the profits from their rental property. Interestingly, no other kind of UK business is affected by the Section 24 taxation. In other words, whatever other form of business you might be in, be it butcher, baker or candlestick maker, every other business can offset their finance costs against their profits, except buy-to-let.
The issue caused by Section 24 Tax is that some landlords ended up paying more income tax than they really made in profit after paying their buy-to-let mortgages. Meaning on the back of rising Milton Keynes house prices in the last five years, some Milton Keynes landlords have sold their buy-to-let investments.

2. 3% More Stamp Duty for Landlords

When someone buys a property, they normally must pay a tax to the Government for the privilege. This tax is called Stamp Duty. Yet landlords must pay an additional 3% stamp duty supplement on top of that when they purchase a Milton Keynes buy-to-let property. Evidence suggests some Milton Keynes landlords have decided to hold off or scale back buying additional buy-to-let properties for their portfolio because of the thousands of extra pounds that landlords have to pay to buy the rental property.
3. Holiday and AirBnb Lets

Some Milton Keynes landlords are converting their long-term rental properties into short-term furnished holiday and AirBnB properties. Whilst the hassle, stress and service levels are much higher, these types of properties do tend to make more money and aren`t as heavily taxed as normal lets. When properties convert to short-term lets, it removes another Milton Keynes property out of the general supply chain of long-term rental properties.

4. Greater Legislation for Rental Properties

With more than 150 pieces of legalisation, and new laws being added each year, the burden on landlords is huge. On the horizon is the Renters Reform Bill which will remove the no fault evictions. Also, all rental properties with an Energy Performance Certificate (EPC) rating of below a ‘C` will have to be improved (i.e., money spent on them) by the landlord. This could be more than £10,000 per property. Hence, why some Milton Keynes landlords have been selling their rental properties with low EPC ratings in the last 18 months.

5. Accidental Landlords Selling Up

There are some Milton Keynes landlords who are classed as ‘Accidental Landlords`. In 2008/9, with a slowing property market and house price values dropping in the order of 16% to 19% (depending on the type of property) some Milton Keynes homeowners decided to let their home out as opposed to selling it at a loss. Yet, with the price booms of the last 18 months, many decided to cash in on the higher property prices and sell - again taking another private rental property out of the system.

So, why is demand of private rented homes in Milton Keynes increasing, even though more people own their home in Milton Keynes than 5 years ago?

Even with better provision of affordable social housing and higher rates of owner occupation in Milton Keynes (rising from 50.7% of homes in Milton Keynes being owner occupied in 2017 to 52.6% in 2021), demand for private rental property continues to outstrip supply.

There are many reasons behind this including:

1. People are living longer, meaning not so many properties are coming back into the mix to be recycled for the younger generation.

2. Net migration to the UK has continued at just over a quarter of a million people a year since 2017, meaning we need an additional 115,000 households to house them alone.

3. For the last two years, one in six of the owners of properties that have been sold have moved into rented accommodation instead of buying on because of the lack of properties to buy.

So, what is the outcome of the imbalance between supply and demand on Milton Keynes rental properties?

Quite simply - Milton Keynes rents have rocketed. They are 5.8% higher today than the spring of 2020 … and that`s on the back of rents being 6.1% higher in spring 2020, compared to spring of 2019.

The severe shortage of housing in the private rented sector is pushing up rents in Milton Keynes as demand continues to grow. Many Milton Keynes people are finding it hard work to find appropriate accommodation at a reasonable rent, and with mounting numbers of tenants predicted to continue, this situation will only get worse unless more houses are built.

Our hearts go out to those Milton Keynes tenants struggling with the cost-of-living crisis, only to then be hit by higher rents.

Yet, these higher rents are now enticing new landlords back into the Milton Keynes buy-to-let market because of the higher returns.

With higher inflation, property investment has been seen in the past a safe harbour to invest one`s money in. With the bonus of rising yields (because of the increase in rents) together with the nervousness of the Bank of England to increase interest rates too much because of the issues in Eastern Europe, this could be the start of a second renaissance in the Milton Keynes buy-to-let market.

If you have concerns about the issues in legislation and taxation, then the advantage of employing a letting agent, with the choice of property, what you pay for it and how it`s managed, will go a long way to mitigate them.

If you are considering getting into the Milton Keynes buy-to-let market for the first time or expanding your property portfolio (whether you are a client of ours or not) please do not hesitate to contact us and we can discuss these matters further.

Looking for somewhere to call home?

Thu, 12 May 2022 12:00:00 GMT
Are you currently looking for a new property to call home, or do you know someone who is? Check out our website to see where you fancy moving to - https://bit.ly/mk_property.

Milton Keynes Property Market to Crash in 2022?

Thu, 19 May 2022 12:00:00 GMT
With inflation and the cost-of-living crisis, some say this could cause property values to drop by between 10% and 20% in the next 12 to 18 months.

There can be no doubt that the current Milton Keynes property market is very interesting.

At the time of writing, there are only 807 properties for sale in Milton Keynes (the long-term 15-year average is between 1,780 and 1,850), meaning house prices have gone up considerably.

According to the Land Registry …

Milton Keynes property prices have increased by 13.4% (or £36,400) in the last 12 months.

So, as Robert Kiyosaki says, ‘the best way to predict the future is to look to the past`. I need to look at what caused the last property crash in 2008 and how that compares to today.

1. Increase in Interest Rates

One reason mentioned as a possible cause of a crash is the rise in the Bank of England interest rates, affecting homeowners` mortgages.

Higher mortgage rates mean homeowners will have to pay a lot more on their mortgage payments, leaving less for other household essentials. In 2007 (and the 1989 property crash), many Milton Keynes people put their houses up for sale to downsize to try and reduce their mortgage payments.

Yet the newspapers fail to mention that 79% of British people with a mortgage have it on a fixed interest rate
(at an average mortgage rate of 2.03%).

Also, just under 19 out of 20 (93.2%) of all UK house purchases in 2021 fixed their mortgage rate.

So, in the short to medium-term (two to five years), most homeowners won`t see a rise in mortgage payments for many years. Also, 27.8% of all UK house purchases were 100% cash (i.e. no mortgage).

Of the 932,577 house purchases registered since February 2021
in the UK, 259,205 were bought without a mortgage.

Yet some people say this will be a problem when all these homeowners come off their fixed rate. The mortgage lending rules changed in 2014, and every person taking out a mortgage would have been assessed at application as to whether they could afford their mortgage payments at mortgage rates of 5% to 6% rates, not the 2% to 3% they may well be paying now.

No pundit says the Bank of England interest rates will go above 2% with a worst-case scenario of 3%. If the Bank of England did raise interest rates to 3%, homeowners would only be paying 4.5% to 5.5% on their mortgages and thus well within the stress test range made at the time of their mortgage application.

This means the probability of a mass sell-off of Milton Keynes properties or Milton Keynes repossessions because of interest rate rises (both of which cause house prices to drop) is much lower.

2. House Price/Salary Ratio

Another reason being bandied about by some people for another house price crash is the ratio of average house prices compared to average wages.

The higher the ratio, the less affordable property is. In 2000, the UK average house price to average salary ratio was 5.30 (i.e. the average UK house was 5.3 times more than the average UK salary). At its peak just before the last property crash in 2008, the ratio reached 8.64.

The ratio now is 8.85, so some commentators are beginning to think we`re in line for another house price crash. However, we must disagree with them because mortgage rates are much lower today than in 2007. For example …

The average 5-year fixed-rate mortgage in 2007 was 6.19%
(just before the property crash), yet today it`s only 1.79%.

So, whilst the house price/salary ratio is the same as the last property crash in 2008, mortgages today are proportionally 71.1% cheaper.

3. Banks Reckless Lending

Another reason for a property crash in 2008 was the reckless lending practices in the run-up to that crash.

The first example of reckless lending was self-certified mortgages. A self-certified mortgage is when the lender doesn`t require proof of income.

In 2007, 24.6% of new mortgages were self-certified mortgages.

So, when the economy got a little sticky in 2008, the people that didn`t have the income they said they had to pay for their mortgages (because they were self-certified) promptly put their properties on the market.

The banks` second aspect of reckless lending was how much they lent buyers to buy their homes. Today, banks want first-time buyers to have at least a 10% deposit and ideally more. There are 95% mortgages available now (meaning the first-time buyer only requires a 5% deposit), yet they are pretty challenging to obtain.

Back in 2005/6/7, Northern Rock was allowing first-time buyers to borrow 125% of the value of their home. Yes, first-time buyers got 25% cashback on their mortgage!
In 2007, 9.5% of all mortgages were 95%, and 6.1% of mortgages were 100% to 125%.

Meaning that nearly 1 in 6 mortgages (15.6%) taken out in 2007
had a 95% to 125% mortgage.

When the value of a property goes below what is owed on the mortgage, this is called negative equity. A lot of Milton Keynes homeowners with negative equity (or who were getting close to negative equity) in 2008 panicked because of the Credit Crunch and put their houses up for sale.

To give you an idea of what happened last year (2021) regarding mortgage lending, only 2.4% of mortgages were 95%, and 0.2% of mortgages were 100%. This is because the mortgage lending rules were tightened in 2014.

So why did Milton Keynes house prices drop in 2008?

Well, in a nutshell, a lot more Milton Keynes properties came onto the market at the same time in 2008, flooding the Milton Keynes property market with properties to sell.

Meanwhile, mortgages became a lot harder to obtain (because it was the Credit Crunch), so we had reduced demand for Milton Keynes property.

Prices drop when we have an oversupply and reduced demand for something. Milton Keynes property prices fell by between 16% and 19% (depending on the property type) between January 2008 and May 2008.

So, what were the numbers of properties for sale in Milton Keynes during the last housing market crash?

There were 2,384 properties for sale on the market in Milton Keynes in the summer of 2007 (just before the crash), whilst a year later, when the Credit Crunch hit, that had jumped to 3,754.

This vast jump in supply and the reduction in demand caused Milton Keynes house prices to drop in 2008.

Compared with today, there are only 807 properties for sale in Milton Keynes, whilst the long-term 15-year average is between 1,780 and 1,850 properties for sale.

So, what is going to happen to the Milton Keynes property market?

The Milton Keynes house price explosion since we came out of Lockdown 1 has been caused by a shortage of Milton Keynes homes for sale (as mentioned above) and increased demand from buyers (the opposite of 2008).

However, there are early signs the discrepancy of supply and demand for Milton Keynes properties is starting to ease, yet this takes a while before it has any effect on the property market, so it will be some time before it takes effect.

This will mean buyer demand will ease off whilst the number of properties to buy (i.e. supply) increases. This should gradually bring the Milton Keynes property market back in line with long-term levels, rather than the housing market crash.

Our advice is to keep an eye on the number of properties for sale in Milton Keynes at any one time and only start to worry if it goes beyond the long-term average mentioned above.
But before we go, we need to chat about what inflation and the cost of living will do to the Milton Keynes property market.

How will inflation and cost of living affect the Milton Keynes Property Market?

There is no doubt that cost-of-living increases will have a dampening effect on buyer demand. If people have less money, they won`t be able to afford such high mortgages. This will slow Milton Keynes house price growth, especially with Milton Keynes first-time buyers.

Yet, the reduction in first-time buyers is being balanced out by an increase in buy-to-let landlord`s buying, especially at the lower end of the market.

This, in turn, will stabilise the middle to upper Milton Keynes property market. This means the values of such properties (mainly Milton Keynes owner-occupiers) will see greater stability and a buyer for their home, should they wish to take the next step on the property ladder.
So why are more Milton Keynes landlords looking to extend their
buy-to-let portfolios, even in these economic circumstances?

We see new and existing buy-to-let Milton Keynes landlords come back into the market to add rental properties to their portfolios. As the competition with first-time buyers is not so great, they`re not being outbid as much.

Yet, more importantly, residential property is a good hedge against inflation.
Firstly, in the medium term, property values tend to keep up with inflation.
Secondly, inflation benefits both landlords and existing homeowners, with the effect of inflation on mortgage debt. As Milton Keynes house prices rise over time, it reduces the loan to value percentage of your mortgage debt and increases your equity. When the landlord/homeowner comes to re-mortgage in the future, they will receive a lower interest rate.
Thirdly, as the equity in your Milton Keynes property increases, your fixed-rate mortgage payments stay the same.

Finally, inflation also helps Milton Keynes buy-to-let landlords. This is because rents tend to increase with inflation. So as rents go up, your fixed-rate buy-to-let mortgage payments stay the same, creating the prospect of more significant profit from your buy-to-let investment.

What will the CITY status do to the housing market for Milton Keynes?

Fri, 20 May 2022 12:00:00 GMT
Milton Keynes City status could bring an £18,550 house price boost to Milton Keynes Homeowners.

Changing town to city status could substantially boost Milton Keynes`s housing market.

The new city status unlocks brand new opportunities for future economic growth for the Milton Keynes region, from commerce, trade and entertainment to the arts and tourism. Our research shows it could also help enhance Milton Keynes`s house prices.

We have researched the house price growth across six English and Welsh towns that have attained City status since the Millennium and how house prices have changed over the two years following this change to City status (Southend-on-Sea was the seventh town made a city in February, so it`s too early to ascertain the effect on house prices)

The six towns that achieved City status between 2000 and 2013 were Brighton & Hove and Wolverhampton in 2000; Preston and Newport in 2002 and Chelmsford and St. Asaph in 2013.

The six towns that achieved City status between 2000 and 2013 saw house prices grow 14.6% higher in the following two years than the English and Welsh average.

2000 Millennium City Competition
One of the towns that achieved City status was Brighton & Hove. Property values in Brighton & Hove grew by 39.79% in the two years after achieving the City status. Wolverhampton grew 34.98% in the same two years. Nationally, the average house price rose by only 25.63%

2002 Golden Jubilee City Competition
To celebrate the Queen`s Golden Jubilee in 2002, Preston and Newport were given city status. Two years later, in 2004, house prices increased by 65.49% in Preston and 59.42% in Newport, both outpacing the national growth during the same two years, which was 30.91%

2013 Diamond Jubilee
To celebrate the Queen`s Diamond Jubilee in 2012, St. Asaph and Chelmsford were given city status. Chelmsford saw house price growth between 2013 and 2015 of 19.52%, whilst St. Asaph saw house prices increase by 11.17%. The national average was a growth of 14.63%, showing the City status doesn`t always guarantee above average house price growth.

Predictions for Milton Keynes
What could city status mean for Milton Keynes?

Presently, the average house price in Milton Keynes is £309,260.

We don`t believe we will see a growth of 14.6% (as some of the average growth was in the crazy market of 2002 to 2004), yet we certainly believe it will add 4% to 6% on top of Milton Keynes house prices in the next two years, compared to as if the status hadn`t been achieved.

That could mean Milton Keynes homeowners could be £12,370 to £18,550 better off in a couple of years because of the excellent news.

Should you buy now or wait for the bargains?

Wed, 25 May 2022 12:00:00 GMT
Over the last two years, the Milton Keynes property market has been a rollercoaster ride of hyperactive demand together with the new sport of getting your offer accepted when you compete with 30 other bidders.

Yet there are clouds on the horizon that the Milton Keynes property market could be at its peak.

Bank of England interest rates have increased four times in the last few months to try and combat inflation. Meanwhile many Milton Keynes households are finding it tough to counter the most significant drop in real incomes in a single year since records began in the mid-1950s, all at the same time as gas, heating oil and electricity prices are predicted to rise again in the autumn.

Hence why some economists are predicting house price drops in the coming 18 to 24 months of 3% to 5%.

So, surely this is not the best time to buy a Milton Keynes property – and surely savvy buyers should wait for Milton Keynes house values to fall?

Is it realistic to see double-digit national house price growth? Certainly not.

The question is how far the Milton Keynes property market will slow and whether the slowing will drop into modest falls.

Let us look at household income first.

At best, the outlook is gloomy as real household disposable income is set to drop by 2.4% in 2022/23, the largest drop since records began in 1956. This is despite the £17.6 billion of financial support for British households revealed in Rishi Sunak`s Spring 2022 Statement with the National Insurance thresholds, energy bill support package and duty cut on petrol. Without these changes announced by the Chancellor, real household disposable income would have fallen by an additional 1% in 2022/23.

Second, as interest rates increase, mortgage rates will increase in line, increasing mortgage costs, so surely that will curtail demand, meaning Milton Keynes house prices will drop, and buyers should wait to catch a bargain?

Finally, with inflation on the rise, the real value of people`s savings will decrease quicker, and the value of their deposits will diminish, meaning Milton Keynes prices will surely drop, and people should wait to buy?

Surely the Milton Keynes property market has peaked and
buyers should wait for the bargains?

Well, we don`t think so, and these are the reasons why we say that.

We believe, subject to no significant shocks in the world economy, Milton Keynes house price growth will be very slow in the next 18/24 months and go into low single digits (even the odd month dipping ever so slightly into the red), but not the 16% to 19% annual drop we saw in 2008/9.

Let`s look at real household income. Every economist predicts growth in real household income in 2023/24 by around 1%.

If the two years are combined, the predicted effect on real household income in the next two years (2022/23/24) is a net loss of 1.4%, whilst in the credit crunch years 2010/11/12, the net loss was 2.7%.

Looking at the increase in mortgage rates. 79% of owner-occupiers have fixed their mortgage costs and had their affordability stress-tested to Bank of England interest rates of 3% to 4% under the Mortgage Market Review rule changes in 2014. We believe the most significant impact of increasing interest rates will be at the point of taking on a new mortgage by first-time buyers (as opposed to servicing or the porting of an existing mortgage from one house to the next house).

The four successive Bank of England base rate rises, inflation and the rising cost of living are likely to bring more cautiousness over summer and autumn when it comes to people buying a property. Yet, there is still a massive imbalance of demand for property over the number of properties for sale to quench that demand.

The potency of the job market and the ongoing mismatch between the supply of properties (mentioned in last week`s article on the Milton Keynes property market) on the market and demand for those properties will support property values.

Finally, the by-product of increasing inflation is that it makes buy-to-let more attractive. If there is a reduction in first-time buyers, this will be counterweighted by more landlords buying again, supporting the current level of Milton Keynes properties.

But what if Milton Keynes house prices do drop significantly?

So let`s assume that Milton Keynes house prices do fall, irrespective of the reasons above, it will not inevitably help Milton Keynes buyers.

If we have a house price crash, people tend to find their careers are at risk, and their salaries don`t rise as much. The younger generation (i.e. first-time buyers age range) often gets hit the toughest by recessions.

If first-time buyers wait until 2024 to buy and Milton Keynes property values drop by 10%, that will prove more expensive.

In the last 2008/09 crash, lenders weren`t offering 5% deposit mortgages. The lowest deposit mortgage that first-time buyers could get was with a 10% deposit and even then, they were hard to come by.

When writing this article, first-time buyers can obtain a 5% deposit mortgage for a fixed rate of 2.66% for five years.

The typical first-time buyer terraced house in Milton Keynes
sells for £248,100.

So, if they were to buy now, on this mortgage deal, the first-time buyer would have to stump up a £12,405 deposit and their mortgage payments would be £862.95 per month.

Yet, let`s say property values in Milton Keynes do drop by 10% in the next 18 months, the terraced house would now be worth £223,290, so a significant saving. Or is it?

Everyone believes interest rates will rise further, so let`s assume they go to 3% by the autumn of 2023. That means the mortgage rate for a 10% deposit mortgage will be in the early 5%`s, so let me assume 5.29% (because the banks tend to increase the gap between the base rate and the mortgage rate in recessions to allow for the extra risk).

The monthly mortgage payment on the 5.29% mortgage would be £1,051.69 per month, and you would need to double your deposit to £22,329.

So even if Milton Keynes`s house prices did drop by 10%, the first-time buyer would be £2,260 worse off a year in mortgage payments and would have to find double the deposit.

...and then there is the other cost of waiting.

You have two years` worth of rent to pay. The average rent for a Milton Keynes property is £1,297 per month.

If you waited a couple of years for Milton Keynes house prices to drop by 10%, you would spend £31,128 in rent.

Choosing to buy a Milton Keynes property makes even more economic sense if it is a long-term choice, as homeowners can ride out any house price drops.

Homeowners who plan to stay in a property can generally rely on getting their money back within six to ten years whilst not paying any rent.

Will Milton Keynes prices go up, or will they go down?

Remember, George Osbourne said house prices would drop by 18% in May 2016 if we voted to leave the EU, whilst many economists said they would drop by 5% to 10% when Covid hit in March 2020.

And we all know what happened.

If you think you will be better off owning your own Milton Keynes home rather than renting one, don`t bother to wait for the suggested house price drop that may never happen.

NEW PROPERTIES - JUST LAUNCHED

Tue, 31 May 2022 12:00:00 GMT
Are you currently looking for a new property to call home, or do you know someone who is? We`ve just launched a new selection of properties to suit all needs and budgets.

OPENING TIMES - QUEENS JUBILEE

Tue, 31 May 2022 12:00:00 GMT
👑 𝙏𝙃𝙀 𝙌𝙐𝙀𝙀𝙉𝙎 𝙋𝙇𝘼𝙏𝙄𝙉𝙐𝙈 𝙅𝙐𝘽𝙄𝙇𝙀𝙀 👑

Our offices will be closed on Thursday 2nd and Friday 3rd June for the Bank Holiday.
We`ll be back in the office first thing Monday 6th June.

We`d like to wish everyone a fabulous bank holiday from all the team.

The 6 Reasons Milton Keynes Rental Properties Could Inflation Proof Your Savings?

Wed, 01 Jun 2022 12:00:00 GMT
The cost-of-living predicament is threatening the budgets of many Milton Keynes householders.

Inflation is running at 7.8%, yet the best savings rates in the market are only 2.75% (because of low Bank of England interest rates). This means that the value of people`s savings is falling fast.

To add insult to injury, the possibility of a recession on the horizon could add another nail in the coffin of people`s wealth and savings.

Looking back at the last recession (ignoring the 2020 Covid recession), the Stock Market (FTSE index) dropped 40.1% during the Credit Crunch (2008/9) - scarcely a soothing thought if you worry about a recession looming in the next couple of years.

A recession can have a catastrophic impact on household budgets, as a weaker economy characteristically means that salaries drop, and people get made redundant.
So, why do we suggest Milton Keynes rental properties will help to
protect your wealth and hedge against inflation?

Milton Keynes rentals aren`t perfect, yet in many ways, they go a long way to help – let us tell you why.

1. One of the most significant benefits of investing in residential property is to hedge against inflation. An ‘inflation hedge` is an investment that defends against the decreased purchasing power of your money that results from the loss of its worth/value due to inflation.

The last time the UK suffered high and persistent inflation was the 1970s.

In 1973, the average British house was worth £9,942. In 1980, that same house was worth £23,287. If the same £9,942 had been invested instead in the stock market in 1973, it would have been worth £19,384 in 1980.

So how did that compare to inflation?

Neither property nor the stock market beat inflation in those seven years (as the goods and services of that £9,942 in 1973 had risen to £25,897 by 1980).

But investing in the stock market between 1973 and 1980, that stock market investor would have lost 25.2% of their investment in `real terms`, compared with only 10.1% for property investors.

However, there was the bonus of seven years` worth of rent!

To give you some idea of what that would be worth in today`s figures (even if the rent didn`t go up during that time frame) ...

The average Milton Keynes landlord will earn
£114,324 in rent over seven years.

2. Rental properties have repetitive, regular monthly income, whilst dividends from the stock market are dependent on there being profits which, in a recession, can be hit and miss.

3. Existing Milton Keynes landlords know that the rents their rental properties achieve don`t historically decline during recessions in the medium term.

In 2008, Milton Keynes rents dipped by 5.2%, yet they soon
bounced back a year later.

And even if average rents do go down, every rent is fixed at the start of the tenancy. Also, it is infrequent for a tenant to negotiate a reduction in rent mid-tenancy even if average rents did drop.

4. Property prices sometimes fall during recessions.

In the 2008 Credit Crunch recession, Milton Keynes
property values dropped 24.1%.

Dropping from £194,666 at the peak in October 2007 to £147,827 in April 2009 (before they started to rise again).

Yet as I stated above, the Stock Market dropped 40.1% with the Credit Crunch. Also previously, the Stock Market dropped 36% on Black Monday before the early 1990`s recession and 55.3% in 1974.

Which sort of drop would you prefer?

5. (Almost) guaranteed rental payments. Insurance can be taken out for rental payments (you can`t get that on stocks and shares). Also, the government will cover most (or all) of the rent when someone is made redundant and needs to apply for social security.

6. For those Milton Keynes landlords who take a mortgage, inflation can be a benefit. The first is the effect of inflation on mortgage debt. As Milton Keynes house prices rise over time, it reduces the loan to value percentage of your mortgage debt and increases your equity. You will receive a lower interest rate when you re-mortgage in the future because of the lower loan to value percentage.

Also, as the equity in your Milton Keynes rental property increases, assuming you fix your mortgage, your payments stay the same.

Finally, inflation also helps Milton Keynes buy-to-let landlords because rents tend to increase with inflation. So as rents go up, your fixed-rate buy-to-let mortgage payments stay the same, creating the prospect of more significant profit from your buy-to-let investment.

Yet, there are downsides to renting.

Rent arrears can be a worry though. However, during 2021, landlords who used a letting agent were, according to an investigation from Denton House Research, 272.5% less likely to be in arrears of two months or more.

One of the biggest reasons is the more stringent tenant referencing that letting agents tend to do compared to landlords who do it themselves. At our agency, we like to reference tenants carefully for job security, stability, and any history of non-payment on rents, always liaising with previous landlords/agents to see if they were a good tenant.

That is why many tenants with a poor tenancy record are attracted to properties that are not through agents, as they know most (not all) DIY landlords don`t reference their tenants as thoroughly as letting agents do. Solid referencing is not a 100% guarantee you won`t get rent arrears or have your rental property trashed, yet it will go a long way to mitigate it.

One of the things about investing in Milton Keynes rental properties is that buy-to-let investors have more control over their returns than stock market investors do. Buy-to-let provides long term stability and constant income to counterweight the massive swings seen in the FTSE stock market.

There is something reassuring about touching and feeling
your investment – the `bricks and mortar`.

You must make your own decision when investing in the private rental market in Milton Keynes. If you`d like to chat over the phone for five or ten minutes to discuss where we would be investing in the Milton Keynes property market, don`t hesitate to send us a message or pick up the phone.

How are you planning for the spectre of a potential recession?

HAPPY MOVING IN DAY

Wed, 08 Jun 2022 12:00:00 GMT
HAPPY MOVING IN DAY 🥳👏🥳 We wish you all the best in your new home 🏡 Hope you enjoy the box of goodies😋

It`s cheaper, in real terms, to buy a property in 2022 than in 1952.

Wed, 08 Jun 2022 12:00:00 GMT
Well, what a weekend that was. Street parties, gatherings in the park, the purple bunting, egg and cress sandwiches, union jack flags, cheese and pineapple on cocktail sticks, and let`s not forget the trifle – the Platinum Jubilee Party. And no decent party is worth its salt without a game or a quiz.

So, if you have post-Jubilee blues, let me ask you, how much was the average house worth in 1952 in the area that was soon to become Milton Keynes?

To start with, let me look at what a property is worth today in Milton Keynes.

The average price paid for a property in Milton Keynes in the last 12 months was £337,390.

Now, let`s go back to 1952, when the main towns were Bletchley, Stony Stratford and Wolverton. Sir Winston Churchill was the Prime Minister, Newcastle won the FA Cup, London was covered in the Great Smog, free prescriptions on the NHS ended (it cost 1 shilling or 5p in new money), and King George IV, at the age of 56 passed away on the 6th February, meaning Princess Elizabeth became the Queen - as for housing…

The average price of a home in the area of Milton Keynes in 1952 was £2,755.

This means Milton Keynes house prices are 121 times higher since 1952.

Yet over the last 70 years, the country has been subjected to 4.5% per annum inflation.

That 1952 Milton Keynes home is equivalent to £52,978 today when adjusted for inflation.

This means house prices in this area have increased by 504.8% in real terms since 1952.

So, does that mean house prices are more expensive today compared to 1952?

In 1952, the average annual male wage was £452, 8 shillings and 1 pence, meaning the average house in the local area was 6.09 times the average wage. Today the average home is 8.85 times the average wage.

Yet let us not forget the average mortgage payment in 1952 was £11 per month. The average Brit earned £34 per month, meaning 32.3% of the household income was going on mortgage payments, whilst nationally today, according to the Nationwide, it stands at 28%.

It`s cheaper, in real terms, to buy a property in 2022 than in 1952.

And that`s the point, some things in ‘real terms` (real terms being true spending power of the money after taking into account wages, costs and inflation) were more expensive and some cheaper 70 years ago. For example, in 1952, petrol was equivalent (in today`s inflation-adjusted prices) to £1.02 per litre, a pint of beer £2, half a dozen eggs £2.20, cheddar cheese £2.40 per 500g, a basic radio £430, a Hoover £530 and a 12-inch TV £1,600.

So back to property, the Queen`s reign has seen some amazing house price rises in the UK, yet that growth hasn`t always been in constant upwards direction as we have had a couple of dips along the way.

We had a house price crash in 1990, when the average value of a Milton Keynes property dropped from £82,901 to £68,658 in 1996, only for them to start rising again.

Milton Keynes saw another house price crash between 2008 and 2009, and the average house price dropped from £247,993 to £211,418 in a year.

So, what else has changed about property and housing since the Queen came onto the throne?

In 1952, only 32% of people owned their own home, whilst 50% of people rented from a private landlord and 18% rented a council house.

By the time of the Silver Jubilee in 1977, 56% of people owned their own home, with 12% of people privately renting and 32% rented from the council.

Come the Golden Jubilee in 2002, 70% of people owned their own home, with 11% of people privately renting and 19% rented from the council.

Today, 63% of people own their own home, 20% of people privately rent and 17% rent from the council.
So, to conclude, as we look forward into the 21st century, I am sure the property market will be totally different again in 70 years.

Hopefully, you`ve enjoyed reading this article and do share it with your friends if you find it interesting.

PS for all you Rightmove fans, the average terraced home in the Milton Keynes area in 1952 would have been worth £2,197, and a semi would have been bought for on average £2,497.

High Street - Newport Pagnell

Fri, 10 Jun 2022 12:00:00 GMT
Are you currently looking for a new property to call home, or do you know someone who is? This quirky and newly refurbished GRADE II LISTED building is in the heart of Newport Pagnell might be up your street. You have several excellent pubs and restaurants within walking distance of your front door and only minutes from the open countryside. It has lots of original features and something truly unique! A selection of photos gives you an idea of the specification, but seeing them in person highlights the character on offer. If you like what you see and want to find out more, please call 01908 694694 to book your viewing.

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Brand New - CARPETS
FRESH PAINT

If you`re looking for something a little different. We have three properties available

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MK Business Showcase

Fri, 10 Jun 2022 12:00:00 GMT
We had a great day yesterday at the Milton Keynes Chamber of Commerce #MKBusinessShowcase event at Kents Hill Park Training and Conference Centre 🙌

It is always great to network with other local businesses, and we`ve made many new connections.

Congratulations to Josh Grainger 123 Internet Group - Digital Marketing Agency, Charlotte Berridge Starting Off, Habiba Kasker & Ilayda Balci EMW Law LLP

HAPPY MOVING IN DAY

Tue, 14 Jun 2022 12:00:00 GMT
HAPPY MOVING IN DAY 🥳👏🥳 We wish you all the best in your new home 🏡 Hope you enjoy the box of goodies😋

TEAM APPRECIATION

Tue, 14 Jun 2022 12:00:00 GMT
WELL DONE, Ceri Crowsley Ward & Katy Knight, for completing your first move-ins from start to finish. Keep up the great work 👏

The Shifting Milton Keynes Property Market

Wed, 15 Jun 2022 12:00:00 GMT
The Milton Keynes property market is on the cusp of a tipping point. It`s a tipping point that will influence Milton Keynes house prices, the number of properties available to buy, demand for those Milton Keynes properties and the lives of every homeowner and the property-owning buy-to-let landlords in Milton Keynes. This shift in the Milton Keynes property market is a big deal so let us explain.

What are the two vital reasons for this shift in the Milton Keynes property market?

First, the easy-going Milton Keynes property market goldmine of the past couple of years will end.

The bonanza of the Milton Keynes property market for house sellers, which was primarily fuelled by cheap money, is receding and the scales are starting to tip somewhat more in favour toward Milton Keynes buyers (which is not a bad thing – more of that later).

Secondly, and more significantly, this shift in the Milton Keynes property market is not a collapse.

Let us enlighten you as to why this is.

One of the key influencing factors of the property market is what people pay on their mortgages. The higher the mortgage interest rate, the higher the mortgage payments.

Mortgage rates are usually 1% to 2% higher than the Bank of England base rate. Therefore, mortgage rates are increasing on the back of higher Bank of England interest rates.

So, whilst we have seen rates rise four times in the last year, the Bank of England base rate stands at only 1%. Compare that with Bank of England base rates in the 1980s (when the average base rate was 12.63%), 1990s (when the average base rate was 8.8%) and the 2000s (when the average base rate was 4.7%). These high base rates (together with high unemployment) contributed to the woes of the UK property market crashes of the early 1990s and 2008.

From the gloomiest economist, the worst-case scenario doesn`t see Bank of England base rates rising past 3%.

This means the prospect of a housing crash is minimal because of the comparatively low unemployment and base rates still at all-time lows.

What are the signs of the shift in the Milton Keynes property market?

The statistics show a slight shift in the scales between it being a 100% seller`s market for the last two years to more an 80% sellers and 20% buyer`s market and here are the reasons why:-

1. The number of houses for sale has grown by 17% in six months.

Nationally, the number of properties available to buy has increased by 17.07% in the last six months, rising from 389,558 in January to 456,048 by the end of May. This rise in the number of properties on the market is a crucial component of the housing market puzzle. Let me explain why.

Before Covid, house buyers having more choice of properties to buy in the summer months would have been thought unremarkable. Yet the stark shortage of properties to buy in the last couple of years has caused national house prices to grow by 19.66%. Any growth or reduction in the number of properties for sale is significant (hence a key bellwether).

This means that buyers will have more choice of properties to buy this summer.

2. The number of properties sold in the UK has dropped 11.4% year to date 2022 vs 2021

When we say sold in this context, we mean the month the house sale price is agreed, and the sold board goes up (not on completion when the keys are handed over).

Looking at the national number of properties sold on a month-by-month basis, things have started to shift since March.

In February 2021, 111,648 houses sold (STC) in the UK compared to 117,734 for the same month in 2022. So almost identical.

Yet, March 2022 saw 15.3% fewer houses sell in the UK than in March 2021 (129,655 in March 2022 compared to 153,023 in March 2021).

April 2022 saw 20.6% fewer houses sold than April 2021 (117,737 compared to 148,228).
So, all doom and gloom? No! Not at all.

The spring months (March and April) of 2021 saw the rush for houses to be sold to beat the Stamp Duty Holiday ending in June 2021, so of course, March and April`s 2022 figures would be lower.

The panic buying of March and April 2021 returned to normal levels in May 2021, meaning the number of houses sold in May 2022 was only 4.3% lower than in 2021 (131,941 in May 2022 vs 137,800 in May 2021).

3. The number of house price changes has increased by 69% since January.

In January 2022, the number of house price changes was 27,063 and has been increasing steadily each month to 45,792 in May 2022, an increase of 69%. This means Milton Keynes house sellers have to be more realistic with their pricing to get their properties sold.

Take all these things together and you can see that there are signs that the Milton Keynes property market has started shifting more into buyers` territory yet is a long way from the traditional idea of a ‘buyer`s market`.

These points can be backed up with the house price data for Milton Keynes.

In August 2021, Milton Keynes house prices increased by 2.9% in one month.

Yet last month, for example, Milton Keynes house prices only rose 1.9%, and the month before they only rose 1.3%. Not all doom and gloom when you consider …

Milton Keynes house prices are still 14.9% higher than a year ago.

We have been in fifth gear for the last two years with extra rockets attached. We are certainly not going into reverse gear, more a drop down the gears to fourth!

We know many aspiring Milton Keynes homeowners are waiting for house prices to fall, however, we do not foresee any large Milton Keynes house price drops in the next few years. In essence, whilst we do believe the rate of house price growth will slow down, that does not mean it will go into reverse.

Some would ask what increasing interest rates and inflation will do to the Milton Keynes property market?

As we`ve already discussed in several recent articles on our property blog, if interest rates don`t go above 3.5%-4%, this will not be a game-changing issue for the Milton Keynes property market. Most homeowners are on a reasonably long-term fixed-rate mortgage (typically 5+ years) and will be able to transfer them across to the new house purchase if they want to move.

Now, of course, that won`t help first-time buyers. We agree there will be fewer Milton Keynes first-time buyers, yet these will be replaced by landlords re-entering the Milton Keynes property market (as we discussed in a previous article a few weeks ago).

Milton Keynes house prices will also be further protected by the effect of inflation on house prices (again discussed in a separate article about a month ago).

As the number of properties coming to market has increased, the choice of properties to buy has expanded. This will encourage those potential cash home buyers who have also been waiting on the sidelines (alongside the landlords) to start viewing and making offers. They, too, have not wished to get into a bidding war but patiently waited for the market to ease.

And it is for those reasons in this article (and our other recent articles mentioned above) We do not see a Milton Keynes housing bubble on the horizon.

TEAM APPRECIATION

Thu, 16 Jun 2022 12:00:00 GMT
𝙁𝙖𝙣𝙩𝙖𝙨𝙩𝙞𝙘 𝙬𝙤𝙧𝙠 𝙍𝙚𝙗𝙚𝙘𝙘𝙖 𝘽𝙚𝙚𝙧

Moving is usually one of the most stressful events in life, let alone after a tough divorce!

Reviews like this do make our day!

⚠️ 𝙍𝙚𝙣𝙩𝙚𝙧𝙨` 𝙍𝙚𝙛𝙤𝙧𝙢 𝘽𝙞𝙡𝙡: 𝙔𝙤𝙪𝙧 𝙘𝙤𝙢𝙥𝙡𝙚𝙩𝙚 𝙜𝙪𝙞𝙙𝙚 𝙩𝙤 𝙩𝙝𝙚 𝙁𝙖𝙞𝙧𝙚𝙧 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙍𝙚𝙣𝙩𝙚𝙙 𝙎𝙚𝙘𝙩𝙤𝙧 𝙒𝙝𝙞𝙩𝙚 𝙋𝙖𝙥𝙚𝙧

Fri, 17 Jun 2022 12:00:00 GMT
The government has confirmed the Renters` Reform Bill will be introduced this parliamentary session, outlining its proposals in the Fairer Private Rented Sector White Paper.

The proposed reforms for the private rented sector in England go much further than initially expected, with the government calling it "the biggest shake-up of the private rented sector in 30 years".

𝙒𝙃𝘼𝙏𝙎 𝙄𝙉 𝙏𝙃𝙀 𝙒𝙃𝙄𝙏𝙀 𝙋𝘼𝙋𝙀𝙍?

⭕ 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟐𝟏 "𝐧𝐨 𝐟𝐚𝐮𝐥𝐭" 𝐞𝐯𝐢𝐜𝐭𝐢𝐨𝐧𝐬 𝐭𝐨 𝐛𝐞 𝐚𝐛𝐨𝐥𝐢𝐬𝐡𝐞𝐝
⭕ 𝐏𝐞𝐫𝐢𝐨𝐝𝐢𝐜 𝐭𝐞𝐧𝐚𝐧𝐜𝐢𝐞𝐬 𝐭𝐨 𝐛𝐞𝐜𝐨𝐦𝐞 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝
⭕ 𝐍𝐨𝐭𝐢𝐜𝐞 𝐩𝐞𝐫𝐢𝐨𝐝𝐬 𝐟𝐨𝐫 𝐫𝐞𝐧𝐭 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐬 𝐭𝐨 𝐛𝐞 𝐝𝐨𝐮𝐛𝐥𝐞𝐝
⭕ 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐡𝐨𝐮𝐬𝐢𝐧𝐠 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 𝐭𝐨 𝐛𝐞 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝
⭕ 𝐓𝐞𝐧𝐚𝐧𝐭𝐬 𝐠𝐢𝐯𝐞𝐧 𝐦𝐨𝐫𝐞 𝐫𝐢𝐠𝐡𝐭𝐬 𝐭𝐨 𝐤𝐞𝐞𝐩 𝐩𝐞𝐭𝐬 𝐢𝐧 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐢𝐞𝐬
⭕ 𝐁𝐚𝐧𝐬 𝐨𝐧 𝐫𝐞𝐧𝐭𝐢𝐧𝐠 𝐭𝐨 𝐟𝐚𝐦𝐢𝐥𝐢𝐞𝐬 𝐰𝐢𝐭𝐡 𝐜𝐡𝐢𝐥𝐝𝐫𝐞𝐧 𝐨𝐫 𝐭𝐡𝐨𝐬𝐞 𝐨𝐧 𝐛𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐭𝐨 𝐛𝐞 𝐨𝐮𝐭𝐥𝐚𝐰𝐞𝐝
⭕ 𝐀 𝐧𝐞𝐰 𝐎𝐦𝐛𝐮𝐝𝐬𝐦𝐚𝐧 𝐜𝐨𝐯𝐞𝐫𝐢𝐧𝐠 𝐚𝐥𝐥 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐥𝐚𝐧𝐝𝐥𝐨𝐫𝐝𝐬
⭕ 𝐍𝐞𝐰 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐏𝐨𝐫𝐭𝐚𝐥 𝐟𝐨𝐫 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐥𝐚𝐧𝐝𝐥𝐨𝐫𝐝𝐬 𝐚𝐧𝐝 𝐭𝐞𝐧𝐚𝐧𝐭𝐬

Goodlord has written a full article on the proposed changes. It`s a worthwhile read,
Check it out 👉 https://bit.ly/RentersReformBill

𝙏𝙀𝙉𝘼𝙉𝙏 𝘾𝙀𝙇𝙀𝘽𝙍𝘼𝙏𝙄𝙊𝙉

Thu, 23 Jun 2022 12:00:00 GMT
𝙏𝙀𝙉𝘼𝙉𝙏 𝘾𝙀𝙇𝙀𝘽𝙍𝘼𝙏𝙄𝙊𝙉

Jenny has been a tenant of MK Property for almost 11 years, which is impressive and something to celebrate 🥳👏

When Jenny moved into her home, we didn`t have the goody boxes you might have seen our new tenants receive when collecting their keys. So, we`ve gifted Jenny a box to celebrate being a long-standing tenant. Here`s to many more happy years Jenny 🍾

We hope you like the goodies.

𝐇𝐨𝐰 𝐜𝐮𝐭𝐞 𝐢𝐬 𝐄𝐥𝐬𝐚 🐕 𝐁𝐓𝐖 😍

27.8% OF MILTON KEYNES PROPERTY SELLERS REDUCE THEIR ASKING PRICES AS THE PROPERTY MARKET EQUILIBRIUM STARTS TO RETURN

Fri, 24 Jun 2022 12:00:00 GMT
The last couple of years of the Milton Keynes property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price.

Yet, as we`ve been writing about the Milton Keynes property market over the last few weeks, the tide is beginning to turn, and pendulum swing more towards a balanced Milton Keynes property market as more homeowners in the Milton Keynes area (MK1 – MK15 & MK17 & MK19) have been reducing their asking prices.

Of the 1,395 properties for sale in the Milton Keynes area, 388 have been reduced in price in the last 3 months.

So why is this important and why is this good news, even for Milton Keynes house sellers?

Property industry statistics show that 5 out of 6 house sellers will buy another property and over 80% of those sellers will move up the property ladder.

When you move up the property ladder, that normally means you pay more for the one you want to move to (that`s why it`s called the property ladder).

So, whilst you won`t be getting as much for yours as you might have done earlier in the year, you won`t have to pay as much for the one you want to buy (and the price difference between the two properties will be smaller – meaning you will end up saving money because of these reductions).

Therefore, what is the level of reduction being seen in the Milton Keynes property market?

The average percentage of the price reduction in the
Milton Keynes area has been 5.3%.

We must stress house prices/values in Milton Keynes haven`t dropped 5.3%, just the asking prices of some of the properties on the market.

This is good news for Milton Keynes first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price whilst. As we explained above, this is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs.

So, what should Milton Keynes homeowners be aware of if they are selling their home now or in the future?

For us it is important that we inform all Milton Keynes property owners of the real story. This enables them to judge for themselves where they stand in the current Milton Keynes property market, thus enabling them to make better informed decisions.

You see some Milton Keynes estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent`s book, as opposed to a competitor.

This practice is called overvaluing.

Now of course, each Milton Keynes homeowner wants to get the most for their home, yet some estate agents know this and prey on those Milton Keynes house sellers.

You might ask, what is the problem with that?

Well, you only get one opportunity at hitting the Milton Keynes property market as a new property. Everybody has access to the internet, social media and the four main property portals (Rightmove, Boomin, On The Market, Zoopla), and your potential buyers will know the property market like the back of their hand.

If you have a 2-bed Milton Keynes semi that is on the market for a 3-bed Milton Keynes semi-detached house price ... those Milton Keynes buyers will ignore you.

Your Milton Keynes property will stick on the market as your potential buyers keep seeing your property on the portals each week.

These buyers will then start to believe there is something wrong with your property and dismiss it even further. That is until you, as the house seller, reduce your asking price. The issue is that sometimes these buyers will think something is wrong with your home and could bid you down even further, meaning you will get less even though you asked for more! (This was backed up by some research done by Which?).

Now according to research by Denton House, the average British house buyer only views around six properties before buying – so please don`t assume viewers will come round your optimistically priced (i.e., overvalued) Milton Keynes home, thinking they will knock you down - quite the opposite - they just won`t view your home in the first place.

And you know that because we bet you have done the same yourself when searching for property.

So, all we suggest is this ... be realistic with your asking price to start with.

Do that and you will sell your Milton Keynes property at a decent price to a decent buyer ... first time, every time - enabling you to move onto the next chapter of your life.

If you know of anyone currently selling their home in the Milton Keynes area and finding things difficult, please share this article with them as it could be of interest.

Space-Saving Ideas For Small Bedrooms

Wed, 29 Jun 2022 12:00:00 GMT
𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐥𝐲, 𝐰𝐞`𝐫𝐞 𝐧𝐨𝐭 𝐬𝐨 𝐬𝐮𝐫𝐞 𝐨𝐧 𝐭𝐢𝐩𝐬 𝟏𝟎 & 𝟏𝟏 🤪

Cramped quarters are no one`s ideal situation, but sometimes we have no say in the size of our bedroom. We do, however, have a say in how we decorate it! The good news is that a little strategic styling and creative organization will make your small space feel comfortable, cool—and as close to palatial as you can get without a king-sized bed. Regardless of size, the best designers know how to decorate a small bedroom to make it feel like a much roomier oasis at the end of a long day (and be stylish enough to show off!).

Check out the full article here 👉 https://bit.ly/TipsForSmallRoom

77.8% of Milton Keynes Properties Were Bought With a Mortgage in the Last Ten Years

Wed, 06 Jul 2022 12:00:00 GMT
Could the high levels of mortgages that Milton Keynes people take out cause another property crash?

Many Milton Keynes homeowners and landlords have been contacting us recently and asking what will happen to the Milton Keynes (and the UK) property market? More specifically, will we have a repeat of the 2008/9 Credit Crunch property crash?

High mortgage payments were one of the critical catalysts to Milton Keynes house prices dropping by between 16% and 19% (depending on the type of property) in just over one year in Milton Keynes.

To answer that question, let`s look at the mortgage numbers locally to see where we stand in the Milton Keynes area.

33,216 of the 42,697 property sales in the last decade in Milton Keynes were made with a mortgage.

77.8% of our local authority area house purchases have been made with a mortgage (meaning 22.2% are made with 100% cash).

Interesting, when compared with the national average of 67.4% of house purchases with a mortgage over the last decade.

However, what is thought-provoking is the number of house purchasers buying with a mortgage has steadily been increasing over the last decade.

Between 2012 and 2017, the percentage of people buying with a mortgage was 76.3%, yet over the last five years in Milton Keynes, that has risen to 79.8%.

Initially, this doesn`t sound good. Yet, as always with our articles on the Milton Keynes property market, the devil is always in the detail.

The issue is that most people need a mortgage to buy their home.

However, it`s not the amount of mortgage that is the issue, more the level of monthly payments. So, if you fix your mortgage rate, then your payments are fixed (a good idea especially as interest rates are on the rise).

In the last quarter, just under nineteen out of twenty (94.35%) of new borrowers that took out a mortgage had a fixed-rate mortgage at an average interest rate of 1.84%.

That`s good news for recent buyers as most of their payments won`t rise even though Bank of England interest rates have risen over the last few months. Yet it`s essential to see what existing homeowners with mortgages have done with their mortgage rates (i.e. fixed or not) as they form the bulk of the property market.

This is because in 2008/9 (the last crash), many people were unable to afford their high monthly mortgage payments when they were made redundant because interest rates were much higher. This meant many Milton Keynes homeowners ‘dumped` their houses onto the market, all in one go in 2008, because they couldn`t afford their high mortgage payments.
Also, the banks could not lend money for mortgages as easily because of the Credit Crunch, meaning fewer people could get a mortgage, so the demand for Milton Keynes houses dropped as well.

In a nutshell, the number of Milton Keynes properties on the market almost doubled overnight in 2008, yet demand plummeted as mortgages were hard to come by. High supply and low demand meant Milton Keynes house prices nosedived in 2008/9.

Going into the Credit Crunch, one in six (60.4%) homeowners with a mortgage had a fixed rate at an average of 5.76%. By 2013, this had dropped to one in three people (33.29%) having a fixed-rate mortgage at an average of 3.34%.

Yet today, just under 17 out of 20 homeowners with a mortgage have a fixed rate at an average of 1.97%.

Whilst the country might owe collectively £1,630.5 billion in mortgages, irrespective of increasing rates, most homeowners have protected themselves with a low fixed interest rate.

Also, the overall ratio of mortgage debt in the UK, compared to the value of the homes the mortgages are lent on, is also low compared to the year before the last property crash. This ratio is called the Loan to Value ratio (LTV). The higher the LTV, the less equity the homeowner has in the property.

In 2007 (the year before the crash), only 49.4% of people had a mortgage less than 75% of the house`s value (i.e. they had an LTV of less than 75%). Today that stands at 60.9%, which means more people have more equity in their property.

Another thought on why the country is in a better position is only 4.22% of mortgages have a 90% or higher LTV (compared to 16.28% just before the crash in 2007).

1 in 6 people were vulnerable to negative equity in the last property crash, whilst today that would only be 1 in 25.

This means if we do have another property market correction for any other reason ... the number of people in negative equity will be much smaller, so it won`t affect the property market as much.

So, in conclusion, as we have fewer people with high LTV mortgages and fixed rates that are a third of what they were in the Credit Crunch, we are, as a country, in a better position to weather any storm.

If you would like any advice or opinion on the Milton Keynes property market, be it buying or selling or anything to do with investing in the Milton Keynes buy-to-let property market, don`t hesitate to drop us a line.

MK Starter Homes are 42.9% Cheaper Today Than in 1989

Wed, 13 Jul 2022 12:00:00 GMT
Even though the average value of a Milton Keynes first-time buyer property has risen by 314.7% since 1989 to £255,690, the monthly payments Milton Keynes first-time buyers must make on their mortgages as a proportion of their take-home pay is 42.9% less today compared to 1989.

Today, according to the Nationwide Building Society - the average Milton Keynes first-time buyer only needs to pay out 37.6% of their household take-home pay on their mortgage payments, compared to 65.9% in 1989 (i.e., just over two fifths less).

You might say 1989 was 33 years ago, a long time ago and not relevant to today. We would agree.

So next, we looked a little closer to home, and in 2007 - the average Milton Keynes first-time buyer had to spend 48.8% of their household income on mortgage payments (i.e., 22.9% proportionally cheaper than today).

So why do we say all these things?

Last month, the Bank of England revealed that its Financial Policy Committee would be removing their mortgage market affordability test on people taking out mortgages in August.

The test was introduced in 2014 to ensure the UK didn`t have a repeat of the 2008 Credit Crunch and particularly hit first-time buyers with what they could afford to buy.

This rule change means Milton Keynes property buyers could soon be able to borrow thousands of pounds more and purchase larger homes.

The decision to withdraw the affordability test certainly raised eyebrows in the press, primarily as the Bank of England has raised interest rates five times in the last six months to try and reduce rising inflation. Yet, as stated in the first part of this article, Milton Keynes first-time buyers are comfortably paying their mortgages compared to previous years – therefore everything should be ok with this rule change.

The old rules tested home buyers on mortgage repayments if interest rates rose to 6%/7%, yet the Bank thought that rule was too harsh.

Not all rules have been changed, as the important Bank of England ‘loan to income ratio` stays put.

The Bank were keen to stress that the mortgage market was not going to turn into a free-for-all, as it did in the mid-2000s when the likes of Northern Rock were offering 125% mortgages, and a sixth of all UK mortgages were given without proof of income.

We believe it will have a progressive effect on the Milton Keynes property market.

Many Milton Keynes tenants who have been paying rents far more than actual mortgage payments for the same Milton Keynes home, but have failed affordability assessments regardless, will now be able to get on the property ladder.

The rule change should open the Milton Keynes property market up a little more and allow house prices to grow in Milton Keynes.

We advise anyone who has been refused a mortgage on affordability in the past to speak to a mortgage arranger. If you don`t know of one, drop a message to us, and we will give you details of mortgage arrangers you could talk to.

𝙈𝙄𝙎𝙏𝘼𝙆𝙀𝙎 𝙏𝙊 𝘼𝙑𝙊𝙄𝘿 𝙒𝙃𝙀𝙉 𝙂𝘼𝙍𝘿𝙀𝙉𝙄𝙉𝙂 𝙄𝙉 𝙃𝙊𝙏 𝙒𝙀𝘼𝙏𝙃𝙀𝙍

Thu, 14 Jul 2022 12:00:00 GMT
Temperatures are up past 30 degrees this week, meaning much of our attention will turn to our gardens. However, while our gardens might love a spot of sunshine, gardening in hot weather should be undertaken carefully. The wrong move could make the difference between preserving and protecting our beloved garden ideas and destroying them.

While there will be those immediately thinking of bathing in a paddling pool and BBQs, most gardeners will be concerned about their lawn ideas and floral borders. Hot weather gardening mistakes can trip many gardeners up, throwing up questions such as when should you water plants in hot weather and is it safe to do any planting?

Tips on the mistakes to avoid and what to do instead to keep our outdoor spaces looking exceptional despite the heat 👇

𝙈𝙄𝙎𝙏𝘼𝙆𝙀𝙎 𝙏𝙊 𝘼𝙑𝙊𝙄𝘿 𝙒𝙃𝙀𝙉 𝙂𝘼𝙍𝘿𝙀𝙉𝙄𝙉𝙂 𝙄𝙉 𝙃𝙊𝙏 𝙒𝙀𝘼𝙏𝙃𝙀𝙍

1. Over-watering plants during a heatwave
2. Watering plants during the day
3. Planting tender plants in hot weather
4. Forgetting to shade soil from the sun
5. Ignoring incoming weeds
6. Panicking if your lawn turns brown
7. Cutting your lawn too short
Check out the full article here https://bit.ly/Gardening_MistakesToAvoid

Milton Keynes Property Prices Have Risen by 511% Compared To The National Average of 407.2%

Wed, 20 Jul 2022 12:00:00 GMT
Milton Keynes Property Prices Have Risen by 511% since 1995

`Tell me what is happening to the Milton Keynes property market`, is often a question we get asked.

We always reply, `It depends if you are buying, selling or both`.

The Milton Keynes property market is like a seesaw. For the last two years, it has been quite firmly in the realms of a 90% seller`s/10% buyer`s market.

However, unless you are a Milton Keynes buy-to-let landlord, Milton Keynes first-time buyer, or executors selling a deceased person`s estate, most home movers are both (i.e. they are both sellers and buyers).

So, what determines where we are on the seesaw of a seller`s market or a buyer`s market?

It comes down to simple supply and demand economics. i.e. the number of properties on the market versus the number of buyers in the market.

Like when someone sells goods or services, it`s the same with property. So, when we have a low supply of properties on the market and high demand for properties to move into (like we have had for the last two years since the end of lockdown one), house prices go up.

Milton Keynes house prices are 18.4% higher than a year ago.

The other side of the coin was seen in the Credit Crunch years of 2008/9. Many people wanted to sell their houses in Milton Keynes, yet the banks weren`t lending, so people couldn`t buy. This meant the supply of property on the market exceeded demand; hence Milton Keynes house prices dropped by 16% to 19% in 18 months (depending on what type of property you were selling) as we had a 20% seller`s/80% buyer`s market.

Whilst demand and supply are the key driving force on the balance of the buyer/seller`s market seesaw, it is not the only influencer of the property market. The price band is also an essential determiner of house prices, albeit over the longer term.

To show this, initially, we will go back to 1995 to ascertain what has happened to average house prices over the long term in Milton Keynes.

The average Milton Keynes house price has risen from £54,293
in 1995 to £332,205 in 2021, a growth of 511.9%.
Interesting, when you compare that against the national figure of 407.2%. Also, looking at where our local authority stands against other areas, we are 50th out of 331 local authorities in England & Wales for house price growth.

It`s called the property ladder for an excellent reason, and the health of the whole Milton Keynes property market is very dependent on those bottom rungs of that ladder.

Therefore, looking at the data for our local authority, paying particular attention to the lower end (in terms of price), some intriguing data comes to light. It is crucial as the lower end of the property market (in terms of price) is a good bellwether for the whole Milton Keynes property market.

So, we looked at the following:-

1. Lower 10th Percentile of the Milton Keynes housing market – i.e. the bottom 10% in terms of the value of properties sold – e.g. small apartments and ex-local authority properties in the less popular areas, which mainly attract buy-to-let landlords.

2. Lower Quartile of the Milton Keynes housing market – i.e. the bottom 25% of Milton Keynes property in terms of their value, e.g. first-time buyer homes and mid-market buy-to-let property.

… and if one looks at our figures for Milton Keynes and the whole local authority, you can see the three parts (lowest 10%/lowest 25% and overall average) have performed differently.

• The average value of a Milton Keynes property sold in 1995 in the lower 10th percentile (i.e. the bottom 10% of the Milton Keynes property market) was £23,500, and in 2021, it was £142,500, a growth of 506.4% (compared to the national average of 428.4%)

• The average value of a Milton Keynes property sold in 1995 in the lower quartile (i.e. the bottom 25% of the Milton Keynes property market) was £35,000, and in 2021, it was £235,000, a growth of 571.4% (compared to the national average of 417.7%).

Some of you might be asking yourself, what do all these different figures mean to Milton Keynes homeowners, first-time buyers and landlords?

The overall average is roughly the same as the lower 10th percentile growth figures, yet the lower quartile is much higher. This means the middle to upper market in Milton Keynes has not performed as well as the lower/middle end in terms of house price growth since 1995.

The thought we are trying to get across to every Milton Keynes homeowner and buy-to-let landlord is that there isn`t just ‘one` Milton Keynes property market.

There are markets within markets - almost like a fly`s eye. It is essential not to look at just the headlines but delve deeper when considering what is really happening and not to just look at the overall averages.

As we enter the height of the summer, the Milton Keynes property market seesaw has started to change ever so slightly, changing from the 90% seller`s/10% buyer`s market we have had in the last two years to more of a 70% seller`s/30% buyer`s market.

With that in mind, if you can spot trends before anyone else is aware of them you could find yourself some potential Milton Keynes property bargains.

𝙃𝘼𝙋𝙋𝙔 𝘽𝙄𝙍𝙏𝙃𝘿𝘼𝙔 𝙍𝙀𝘽𝙀𝘾𝘾𝘼

Fri, 22 Jul 2022 12:00:00 GMT
We wish our Tenancy Manager Rebecca a very Happy Birthday for today. From all the team, we hope you have a lovely day 🥳🎂🎈

𝙏𝙍𝘼𝙉𝙎𝙁𝙀𝙍𝙍𝙄𝙉𝙂 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝘽𝙀𝙏𝙒𝙀𝙀𝙉 𝙋𝘼𝙍𝙏𝙉𝙀𝙍𝙎

Tue, 26 Jul 2022 12:00:00 GMT
Your home is often your most important asset, and you may be lucky enough to own other property such as a holiday home or a buy-to-let investment. Over time, if your personal circumstances change; you may want or need to transfer a share in a property. This could be the transfer of a share in the value of your home to your former spouse if you are getting divorced, or to a new partner if you have moved in together. Geoffrey Leaver Solicitors LLP have put together this article on issues to consider when transferring property between partners.

`Transferring property between family members is not always straightforward,` warns Emma Sidney from Geoffrey Leaver Solicitors LLP , a conveyancer in the residential property team. `Your plans will need to take account of ownership structure and should be consistent with your longer-term goals.`

𝙀𝙨𝙩𝙖𝙗𝙡𝙞𝙨𝙝𝙞𝙣𝙜 𝙩𝙝𝙚 𝙡𝙚𝙜𝙖𝙡 𝙖𝙣𝙙 𝙗𝙚𝙣𝙚𝙛𝙞𝙘𝙞𝙖𝙡 𝙞𝙣𝙩𝙚𝙧𝙚𝙨𝙩𝙨

The first step will be to establish the current ownership structure. Land ownership can be multi-faceted, but basically there are two types of interest in land: legal and beneficial:
The legal owner is the person in whom the property`s title vests. With registered land, this will be the person entered as proprietor in the Land Registry`s register of title.

The beneficial interest in a property exists independently from the legal title. It represents the value of the property, for example a financial stake or the right to live there.

This division can sometimes be difficult to appreciate fully, but any transfer needs to address both the legal and beneficial interests in a property. On the plus side, it allows a lot of flexibility in dealing with joint property ownership and the creation of multiple interests in land.

If you already own property with someone else, the ease by which you can transfer your share of the property will depend on whether you are tenants in common or joint tenants. The legal estate will always be held jointly. However, you can hold the beneficial interest as joint tenants or tenants in common. The law treats a joint tenancy as indivisible: neither you nor your partner own a defined share in the property. In contrast, as tenants in common, you and your co-owner each own a distinct share. You can hold the beneficial interest in equal shares, or another split, which means either of you can choose to transfer your respective share to someone else.

If it is not clear whether you are joint tenants or tenants in common, we can help you work it out by examining the HM Land Registry records and the deeds.

𝙏𝙧𝙖𝙣𝙨𝙛𝙚𝙧𝙧𝙞𝙣𝙜 𝙤𝙬𝙣𝙚𝙧𝙨𝙝𝙞𝙥 𝙬𝙝𝙚𝙣 𝙮𝙤𝙪𝙧 𝙧𝙚𝙡𝙖𝙩𝙞𝙤𝙣𝙨𝙝𝙞𝙥 𝙘𝙝𝙖𝙣𝙜𝙚𝙨

If your relationship breaks down, you could buy your partner out or they could agree to buy you out. In this case, a transfer of equity would ensure both the legal and beneficial interest in the property pass to the buyer. As there is usually no need to carry out the full range of property searches, a transfer of equity usually takes less time than a conventional purchase. However, if the property is subject to a mortgage, you will need your lender`s consent.

If you are joint tenants, you will also need to sever the tenancy first. You can do this by serving notice. This will effectively convert your joint tenancy into a tenancy at common, leaving you free to deal with your respective shares. It is important to follow the correct procedures for this to be effective. We can prepare the notices and ensure their correct service, guarding against the risk of any subsequent challenge. You and your co-owner can then sign the transfer of equity, which we will send to the Land Registry to record the change in ownership. Without this, problems could arise when you come to sell or take out a new mortgage.

Instead of buying a partner out, one of you may agree to gift their share. However, if you are getting divorced, always discuss your proposals with your solicitor first. This can avoid the risk of having to reverse the transfer later if the court orders a different settlement.

𝘽𝙚𝙘𝙤𝙢𝙞𝙣𝙜 𝙖 𝙘𝙤-𝙤𝙬𝙣𝙚𝙧 𝙬𝙞𝙩𝙝 𝙨𝙤𝙢𝙚𝙤𝙣𝙚 𝙚𝙡𝙨𝙚

Conversely, you may already own a property but now want to share ownership with someone else, for example a new partner. The process is very similar to the one described earlier except as the sole owner you will not need to sever the tenancy. You and your new co-owner will, however, need to agree whether to be joint tenants or tenants in common and, if the latter, the proportions in which you will share the beneficial interest in the property.

If your property is subject to a mortgage, you will also need your lender`s consent. Your lender may need to carry out credit checks on your partner if they will also be responsible for the mortgage. Alternatively, you may choose to pay off your mortgage in full or remortgage. So, it is a good idea to discuss your plans with them early on. We are familiar with the requirements of all the major lenders, and we can complete the necessary formalities smoothly, ensuring the release of the old charge and registration of the new one at the Land Registry at the same time as the transfer.
The transfer should include a declaration of trust setting out your respective interests. This will determine the split of the net sale proceeds in the future, which reduces the risk of any dispute arising.

When dealing with the Land Registry, as well as ensuring the register reflects the change in ownership, we will check the appropriate restriction is entered. In practice, should you die before your co-owner, this helps ensure your personal representative, and ultimately your chosen beneficiary, can step into your shoes. Your co-owner will then have to agree with them what to do with the property.

𝙏𝙖𝙭 𝙖𝙣𝙙 𝙤𝙩𝙝𝙚𝙧 𝙞𝙢𝙥𝙡𝙞𝙘𝙖𝙩𝙞𝙤𝙣𝙨
You should always take independent advice before transferring property, especially if you are gifting it to another family member. There will often be tax implications.
For further information, please contact Emma Sidney in the Residential Property team at Geoffrey Leaver Solicitors.

𝙃𝘼𝙋𝙋𝙔 𝘽𝙄𝙍𝙏𝙃𝘿𝘼𝙔 𝘿𝙀𝘾𝙇𝘼𝙉

Wed, 27 Jul 2022 12:00:00 GMT
𝙃𝘼𝙋𝙋𝙔 𝘽𝙄𝙍𝙏𝙃𝘿𝘼𝙔 𝘿𝙀𝘾𝙇𝘼𝙉

We wish our Marketing Manager Declan a very Happy Birthday for today. From all the team, we hope you have a lovely day 🥳🎂🎈

Inheritance, could this be the answer to the housing crisis?

Wed, 27 Jul 2022 12:00:00 GMT
Milton Keynes`s Millennials to Inherit £432,346 Each From Their Baby Boomer Parents

The total value of homes owned by Baby Boomers in Milton Keynes alone is £7,141,895,982 – and two-thirds of the Milton Keynes Millennials are set to inherit all that in the next few decades!

Could this be the answer to the housing crisis?

Could Milton Keynes Millennials live it up for the next few decades, safe in the knowledge they will get a huge lump sum to pay off their debts and buy a house with what is left?

Before we look at that, which set of people in Milton Keynes exactly are the Milton Keynes Millennials or Milton Keynes Baby Boomers?

Come to that, who are Generation Z, the Silent Generation or Generation X?

All these are phrases used for the different groups of people in their various life stages of our society.

So, splitting the groups down:

Silent Generation: Born 1945 and before (77 years old and above)
Baby Boomers: Born 1946 to 1964 (58 years old to 76 years old)
Generation X: Born 1965 to 1980 (42 years old to 55 years old)
Millennials: Born 1981 to 1995 (27 years old to 41 years old)
Generation Z: Born after 1996 (everyone under 26 years old)

Using data from the Census, our research shows there are …

21,411 households in Milton Keynes owned by Milton Keynes Baby Boomers and they are worth a combined value of £7,141,895,982.

The generation that will inherit those Milton Keynes properties will be the millennials.

There are 24,766 millennials in Milton Keynes.

After looking at the local demographics, homeownership statistics and current life expectancy, around two-thirds of those Milton Keynes Millennials have parents who own those 21,411 Milton Keynes properties, meaning each is in line for an inheritance of £432,346.37.

Yet what about Milton Keynes`s Silent Generation?

There are 10,165 homes in Milton Keynes owned by the ‘Silent Generation` and they are worth £3,390,657,730.

The issue for those who will inherit their parents` homes is that there are far more Generation X people in Milton Keynes than millennials.

Two thirds of the 43,456 Milton Keynes Generation X will inherit £118,219.81 - still nothing to sniff at yet not as much as the millennials!

So, whilst the Milton Keynes Millennials are less likely to own their own home compared to Generation X and so have done not as well in amassing their assets and savings, they are more likely to benefit from an inheritance boom in the years to come.

This is likely to be very comforting information for those Milton Keynes Millennials, including some from humbler upbringings who historically would have been unlikely to receive an inheritance.

Nevertheless, inheritance is not the silver bullet that will get the millennials onto the Milton Keynes housing ladder.

Nor will it deal with the increasing wealth inequalities in British society, as the inheritance they are likely to receive won`t be accessible when they are trying to buy their first Milton Keynes home.

So before all you Milton Keynes Millennials start running up your credit card bills, safe in the knowledge they will be paid for when your parents pass away in 20/30 years, over half of the females and around a third of men are going to have to pay for their nursing home fees.

Remarkably, we recently read 25% of people who must pay for their nursing home fees run out of money, and therefore have to rely on funding from the local authority

Therefore, if you are a Milton Keynes Millennial, no inheritance will be left for you. It goes without saying, most Milton Keynes parents want to give some inheritance to their children.

Yet if waiting until you pass away to help your children or even grandchildren with your legacy could be seen as too late, so what are the options?

One solution to help and fix the housing crisis in Milton Keynes (and the UK as a whole) is if parents and grandparents, where they can, help financially with the deposit for a house whilst their children/grandchildren are in, say, their 20`s and early 30`s.

Buying a Milton Keynes property is much cheaper than renting – we have shown it many times in these articles.

It`s not a case of not being able to afford the mortgage; the problem is raising the mortgage deposit (of 5% to 10%) for these Milton Keynes Millennials.

Maybe families should be discussing the distribution of family wealth whilst everyone is alive (in the form of helping the family with house deposits) as opposed to waiting until the end, as it will make a massive difference to everyone in the short and long run.

And a final thought, your legacy will have a more significant impact, and you will be here to see it with your own eyes.

A win-win for everyone.

𝙏𝙀𝙉 𝙆𝙄𝙏𝘾𝙃𝙀𝙉 𝙄𝙎𝙇𝘼𝙉𝘿 𝘿𝙀𝙎𝙄𝙂𝙉 𝙈𝙄𝙎𝙏𝘼𝙆𝙀𝙎

Thu, 28 Jul 2022 12:00:00 GMT
A kitchen island might be on your wish list if you`re after having a new kitchen or searching for a new home. With people spending so much time in the heart of the home, it`s important not to spend thousands out on what you think is your dream kitchen but, in reality, could end up being a space you end up hating. A kitchen island can offer huge benefits, from extra storage and a central cooking zone to a sociable space for entertaining family and friends - providing you get it right.

If you`re buying your kitchen from a kitchen company, its in-house designers should alert you to the errors to avoid. However, if you`re designing your kitchen island yourself, here are 10 things to consider 👇

1. Not enough space between the island and cabinets
2. Too little overhang for a breakfast bar
3. An awkward seating area
4. An uncomfortable height
5. Too big or too small for the space
6. Undefined areas
7. Not enough plug sockets
8. Insufficient lighting
9. Too much focus on the floor
10. Forgetting to future-proof your island

𝙒𝙃𝙀𝙉 𝙎𝙃𝙊𝙐𝙇𝘿 𝙔𝙊𝙐 𝙉𝙊𝙏 𝙃𝘼𝙑𝙀 𝘼 𝙆𝙄𝙏𝘾𝙃𝙀𝙉 𝙄𝙎𝙇𝘼𝙉𝘿?

There needs to be sufficient space to accommodate an island, so don`t force one into your small kitchen ideas. Kitchen designers recommend a minimum of 1-metre between the island and cabinets.

RENTAL YIELD V CAPITAL GAIN - LANDLORD TIPS

Tue, 02 Aug 2022 12:00:00 GMT
As an aspiring landlord, you will no doubt have heard the words rental yields and capital gain, but what do these terms actually mean, and how do they relate to Milton Keynes?

𝙒𝙃𝘼𝙏 𝙄𝙎 𝘼 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿?
Put simply, a yield is the annual return you can expect to generate on the rental property you own through the rental income you receive. In order to calculate the rental yield, you need to be aware of the sale price or current value of your property and the rent you expect to receive for the year. The potential rental yield on a property is then estimated in the following way: you take the annual rent of a property, divide it by the home`s value and then multiply by 100.

𝙒𝙃𝘼𝙏 𝙄𝙎 𝘾𝘼𝙋𝙄𝙏𝘼𝙇 𝙂𝘼𝙄𝙉?
Capital gain, sometimes known as capital appreciation or capital growth, is also a key consideration for landlords. It is, in essence, a self-descriptive term - how much will your home increase in capital value over time? And how much could you get for your rental property if you ever come to sell in the future?

𝙒𝙃𝙄𝘾𝙃 𝙊𝙉𝙀 𝙎𝙃𝙊𝙐𝙇𝘿 𝙔𝙊𝙐 𝘽𝙀 𝙋𝙍𝙄𝙊𝙍𝙄𝙏𝙄𝙎𝙄𝙉𝙂?
On a basic level, landlords investing for the short-term should consider locations that could deliver high rental yields, while landlords with a long-term view may want to prioritise regions or cities with historical capital gains and steadily rising house prices.

𝙒𝙃𝘼𝙏 𝙄𝙎 𝙏𝙃𝙀 𝘼𝙑𝙀𝙍𝘼𝙂𝙀 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿 𝙄𝙉 𝙈𝙄𝙇𝙏𝙊𝙉 𝙆𝙀𝙔𝙉𝙀𝙎?
Yields fluctuate from estate to estate. In Central Milton Keynes, the average yield is 5% (before the service charge is deducted). Some areas see investors making significant gains, so specific location and property choice make a big difference when looking to invest in Milton Keynes.

𝙒𝙃𝘼𝙏 𝙄𝙎 𝘼 𝙂𝙊𝙊𝘿 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿 𝙄𝙉 𝙈𝙄𝙇𝙏𝙊𝙉 𝙆𝙀𝙔𝙉𝙀𝙎?
Milton Keynes rental market is huge and there is always a demand for property. However, a high level of properties at a high market price in Milton Keynes means that buy to let property in the area must work hard to return a profit. For this reason, a good rental yield in Milton Keynes is between 5-6%.

Will The Cost-of-Living Crisis Mark the End of the Booming Milton Keynes Property Market?

Wed, 03 Aug 2022 12:00:00 GMT
Milton Keynes property prices have increased by 21.1% over the last two years.

Milton Keynes house prices have risen on the back of several things, including changes in how people see their homes and how they live and work (i.e. working from home), a lack of properties on the market and government tax incentives (the stamp duty holiday in 2020).

Yet, the tide could be beginning to turn as the number of houses coming on the market is increasing as supply is starting to catch up with demand - in Q1 2022, 389,811 properties came onto the market in the UK compared to 425,295 in Q2 2022. One would typically expect Q1 to be larger than Q2 in average years.

Yet some commentators are saying one thing that could stifle this growth is the cost-of-living crisis.

We wanted to delve deeper into what was happening in Milton Keynes instead of reading headlines in the newspapers. Let us start with average incomes.

The average Milton Keynes household income is £642.70 per week, compared to £660.10 in the South East region and £613.10 nationally.

Roll the clock back twenty years to 2002, and the average Milton Keynes household income was £411.30.

We wanted to go into greater detail a few weeks ago; we stated that mortgage costs for first-time buyers were much lower today (as a percentage of household income) than in 1989 and 2007. Many of you commented on social media or sent us messages asking what happened to other household bills.

In 1989, 16% of people`s household income went on housing (rent or mortgage) compared to 17.5% in 2021.

Food represented 19% of people`s spending in 1989, compared to 14.4% in 2021.

Also, gas and electricity were 6% of household income in 1989 compared to 4.81% in 2021.
(although that was before we saw the recent energy price hikes).

Interestingly, the UK household spent 15% of their monthly income on leisure activities in 2021, compared to 10% in 1989.

Household goods and services (i.e. household appliances, insurance etc.) have risen from 11% in 1989 to 14.9% in 2021.

Before we leave these stats, we had a peek at the 1957 stats (the earliest stats available), and in that year, food represented 33% of the household income and tobacco 6% (today, it`s 2.34%).

So, compared to 1989, the big-ticket items of housing, food and fuel combined have gone down from 41% to 36.7% of the household income, whilst leisure has increased from 10% to 15%.

The fuel element of household bills will rise to around 11% to 12% of household income, and we suspect the leisure budget will be hit the hardest to pay for that. We are seeing food inflation of around 10% to 15%, meaning that food will go from its current 14.4% of household income to around 16% to 17%.

It`s going to be tough, especially for those people in rented accommodation who may not earn near the average wage yet, as they have similar fixed costs for gas, electricity and food.

Next, let us look at the inflationary effects on housing costs.

A rise in the base rate will, in theory, slow inflation by reducing consumer demand. In the short-term, this increase in the base rate will increase mortgage rates, thus adding fuel to the fire of the cost-of-living crisis by growing mortgage costs.

Those Milton Keynes homeowners on tracker or variable rate mortgages will instantly increase their mortgage payments.
Encouragingly though, just under 17 out of 20 people are on fixed-rate mortgages, the majority on 5-year fixed rate deals, so their housing costs won`t go up significantly in the short-term.

This will alleviate some of the interest rate effects, making it more challenging and expensive for new borrowers like first-time buyers.

However, as we have explained in previous articles on the Milton Keynes property market, many Milton Keynes landlords have been sitting on their hands in the last couple of years as owner-occupiers have outbid each other in buying their next `forever home`. If there aren`t going to be so many Milton Keynes first-time buyers, then we suspect we might see more Milton Keynes landlords coming out of the woodwork and buying again.

This is especially true as investing in buy-to-let in inflationary times is an excellent hedge to protecting the buying power of your hard-earned savings (drop us a message if you want to read that article).

In conclusion, although the amalgamation of the Milton Keynes house price rises in the last two years, the increasing interest rate rises, and the continuing cost-of-living crisis, there is no doubt the momentum in the Milton Keynes housing market will be slower in the next 12 months compared to the last 24 months. Nevertheless, we anticipate Milton Keynes house price growth will ease (and, in some months, be slightly negative). A better bellwether of the state of the Milton Keynes property market is the number of people moving house (i.e. the transaction levels).

We expect transaction levels to be lower in the latter part of this year and the first half of 2023, yet they are most likely to stay close to the long-term average. The boom is over, yet it shouldn`t be a bust situation.

Milton Keynes`s ‘Generation Stuck` and Their £7bn Tied-up Equity

Wed, 10 Aug 2022 12:00:00 GMT
The predicament of the Milton Keynes 20 to 30 year olds who rent and their inability to get onto the housing ladder is often discussed in the press.

There are 4.43m properties in the UK that are still in the private rented sector (compared to 2.13m in 2002).

This group of people in their 20s and 30`s, who rent from a private landlord, are often called ‘Generation Rent`.

Yet would it surprise you that since 2017, the number of UK households in the private rented sector has reduced by 260,000 whilst the number of homeowners has increased by 1.1m?

In this article we want to talk about another set of people, not ‘Generation Rent`, but ‘Generation Stuck`.

Generation Stuck are our middle-aged and mature homeowners of Milton Keynes. They are the generation that could be described as late ‘Baby Boomers` (born in late 1950s and early 1960s) and the early ‘Gen X` (born in the mid 1960s to early 1970s).

These 50 to 64 year old people feel stuck in their Milton Keynes homes, and therefore we have nicknamed them ‘Generation Stuck`. Their inability to move could be holding back those younger Milton Keynes ‘Generation Renters`.

So, let us look at the numbers involved.

In Milton Keynes, there are 13,396 households, whose owners are aged between 50 and 64 years old and about to pay their mortgage off on property that is worth £4.468bn.

There are an additional 8,015 mortgage free Milton Keynes households, owned by 50 to 64 year olds, worth £2.673bn, meaning ...

Milton Keynes ‘Baby Boomers` and Milton Keynes ‘Gen X` are sitting
on £7.141bn worth of Milton Keynes property.

According to the Census, 47.8% of homes occupied by 50 to 64 year olds have two or more spare bedrooms.

This is backed up by the annual English Housing Survey that states nationally, 49% of properties occupied by these ‘Generation Stuck` are ‘under-occupied`.

Under-occupied is categorised as having at least two spare bedrooms.

Looking at the statistics closer to home

51.5% of Milton Keynes 50 to 64 year olds have two or more spare bedrooms, making it the 142nd highest local authority in the country
(out of 348 local authorities).

The rising number of older Milton Keynes homeowners who want to downsize their Milton Keynes home are often held back by the lack of suitable housing options for older people and the difficulties of moving.

Lots of over 50 year old Milton Keynes people cannot move home in the way that they would like, due to a lack of suitable housing options and so can find themselves ‘stuck` in homes which are no longer suitable for them as they age.

Only 1 in 29 people over the age of 50 move home each year, compared to 1 in 15 for the rest of the population.

Helping mature Milton Keynes homeowners (Generation Stuck) to downsize their homes at the right time will also allow younger Milton Keynes people (Generation Rent) to find the Milton Keynes family homes they need – meaning every generation wins, both young and old.

However, to ensure downsizing works, we need more choices for these `last-time-buyers`.

That means building more bungalows or more ground floor apartments suitable for the middle to older generation.

One way this could be done is by changing the planning rules to force builders to build these types of properties, whilst the other could be the changing of the stamp duty tax breaks for downsizers.

In this way, older Milton Keynes people will be more able to move into homes which suit their specific needs, improve their quality of life whilst meeting their goals in life, all without them becoming detached from their friends and family locally in the Milton Keynes area.

𝙃𝙊𝙒 𝙏𝙊 𝙒𝙊𝙍𝙆 𝙊𝙐𝙏 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿?

Thu, 11 Aug 2022 12:00:00 GMT
Rental yield is one of the most important considerations for any new or current landlord. It helps you decide whether or not a property is a sound investment. It is also used as a factor for lenders when considering the affordability of buy-to-let mortgages.
As a landlord, whether you`re considering investing in a new property or reviewing your existing portfolio, knowing how to calculate rental yield is essential.

𝙒𝙃𝘼𝙏 𝙀𝙓𝘼𝘾𝙏𝙇𝙔 𝙄𝙎 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿?
Rental yield is the financial return you can achieve on a rental property. You can calculate this by dividing your annual rental income by the total value of the property, including the initial purchase and any improvements that you have made or need to carry out in the future.

Rental yield is a crucial factor that buy-to-let investors and landlords can use to determine if their property is a `good` investment. It`s also sometimes used by lenders when calculating the affordability of a buy-to-let mortgage.

You can calculate rental yield as `gross yield` or as `net yield` depending on whether you factor in the running costs of a rental property. The gross yield is generally used when speaking to a mortgage lender about a buy-to-let investment.

𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿 𝘾𝘼𝙇𝘾𝙐𝙇𝘼𝙏𝙊𝙍
A rental yield refers to the value of rent you can expect to receive from your property in a year.

To cover all necessary expenses while allowing you to make a reasonable return on your investment, anywhere between 4-8% is considered a good rental yield.

The rental yield is calculated by dividing your annual rental income by your total investment, then multiplying this by 100. As an example, if you buy a house for £250,000 and rent it for £950 per month, your rental yield is 4.5%.

𝙃𝙊𝙒 𝙏𝙊 𝙒𝙊𝙍𝙆 𝙊𝙐𝙏 𝙏𝙃𝙀 𝙉𝙀𝙏 𝙔𝙄𝙀𝙇𝘿
The above example is the `gross yield,` i.e. the rental yield without consideration for running costs and other expenses involved with a rental property. In reality, you`ll have some of these costs to consider, so make sure you factor these into your calculations when deciding whether or not a property is a good investment.

𝙃𝙀𝙍𝙀 𝘼𝙍𝙀 𝘼 𝙁𝙀𝙒 𝙏𝙃𝙄𝙉𝙂𝙎 𝙔𝙊𝙐 𝙉𝙀𝙀𝘿 𝙏𝙊 𝘾𝙊𝙉𝙎𝙄𝘿𝙀𝙍 𝙒𝙃𝙀𝙉 𝘾𝘼𝙇𝘾𝙐𝙇𝘼𝙏𝙄𝙉𝙂 𝙉𝙀𝙏 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿
Insurance premiums
Replacing Broken Fixtures and Fittings
Maintenance
Ground Rent

Considering expanding your property portfolio or on the first steps of buying your first buy-to-let? Check out our RENTAL YIELDS page on our website, which provides useful information on Milton Keynes yields.

𝐃𝐎 𝐈 𝐍𝐄𝐄𝐃 𝐋𝐀𝐍𝐃𝐋𝐎𝐑𝐃 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄?

Tue, 16 Aug 2022 12:00:00 GMT
𝐖𝐇𝐀𝐓 𝐇𝐀𝐏𝐏𝐄𝐍𝐒 𝐈𝐅 𝐈 𝐃𝐎𝐍`𝐓 𝐇𝐀𝐕𝐄 𝐋𝐀𝐍𝐃𝐋𝐎𝐑𝐃 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄?
You may be lucky and not suffer any negative impact. However, if something does go wrong, you could suffer significant financial losses. Regular Home Insurance isn`t designed to cover the risks introduced by having tenants – your insurer could avoid paying out on a claim if you are letting your property.

𝐃𝐎 𝐈 𝐍𝐄𝐄𝐃 𝐋𝐀𝐍𝐃𝐋𝐎𝐑𝐃 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄?
Although it`s not a legal requirement, you may need Buildings Insurance as part of your agreement with a buy-to-let mortgage provider.

Plus, it provides vital protection against risks that your Home Insurance typically excludes, such as Landlord Liability.

What`s the Difference Between a Flat and an Apartment in Milton Keynes?

Wed, 17 Aug 2022 12:00:00 GMT
• The average sale price of an apartment in Milton Keynes in 2021 was £180,715, making it an excellent first-time buyer purchase and buy-to-let investment.

• In this article, we want to look at the apartment/flat in Milton Keynes and how it could solve the country`s housing crisis.

The word ‘Apartment` derives from the French word ‘Appartement`, which comes from the Italian form of the word, ‘Appartamento`. The core of that Italian word ‘appartare` means ‘to separate`, as in ‘separate a building`.

The word comes from Roman times when housing costs were so expensive within the city walls of Rome. Savvy property owners split (or separated) their houses into what we know as apartments or flats today.

The word flat is derived from the Old Scottish/Old English word `flet`. The flet is the interior of the home. Some also think the phrase stuck as most flats are on one floor, and so by definition, the accommodation is on the flat (i.e., no stairs inside).

The country has an enduring housing shortage. Not enough homes are being built, and even though the Government is aspiring to build 300,000 new homes annually to match demand and keep costs of housing affordable, less than 250,000 were built in 2019, the best rate in the last decade.

And that is why some say the simple solution to Britain`s housing problem is building more apartments/flats.

The British population has been growing by more than half a million every year for the last twenty years. Yet just over 175,000 homes have been built annually.
One solution is building more apartments – and on the face of it, the facts stack up as they are cheaper to heat, the views are often unique and they use less land.
To look at what we do as a country with our apartments, it`s important to look at Europe to see how they live so that we can compare the percentages of flats/apartments lived in -

• Spain 66.1%
• Switzerland 63.1%
• Greece 59.2%
• Germany 56.3%
• Italy 53.1%
• EU average 46.2%
• Sweden 46.7%
• France 34.0%
• The United Kingdom 14.8%
Quite a stark difference, isn`t it!

Now let`s look at Milton Keynes itself.

Of the 69,305 households in Milton Keynes, 17.9% of them (12,412) are apartments / flats.

Even though only 1.2% of the country has residential property built on it (and an additional 3.5% are gardens), building houses is low-density land use. Is it sustainable in the long term to continue to build that way in Britain, a country with a similar population to France yet having less than half its landmass?

If we continue to build just over 5 in 6 new households as houses, surely sooner or later, the precious green belt around our towns and cities will have to go. And we know many of you will say use brownfield sites. Of course, there are brownfield sites, yet …in the whole of the Milton Keynes area, there are only 47 brownfield sites, totalling only 108.1 acres, which would only provide 2,642 houses – so not many!

The country needs a decent supply of homes for its growing and ageing population. Many of you will frown when it has been suggested, even if it`s for environmental reasons alone, most of these should be apartments/flats.

Don`t get us wrong, the love/hate relationship with the apartment/flat and the British is well-founded. Many apartments/flats in Britain are not suitable for happy family living. The high-rise council blocks built in the 1960s didn`t help with their poor communal areas, lack of maintenance and lifts that didn`t work.

Why do so many more Europeans live in apartments?

In mainland Europe, the apartments are larger. For example, in Germany, they are 974 sq ft; in Denmark, they are 1,452 sq. ft; in the UK, they are only 793 sq ft. Also, European apartment/flat owners have more storage areas, higher ceilings and better communal areas.
It is a vicious cycle. Poorly made small apartments make families side-step them, which makes new home builders construct apartments unsuitable for families, which means the situation worsens. This results in the British property market trying to expand our towns and cities outwards into the countryside with houses, rather than upwards into the sky.

We`re not suggesting 20-storey high-rise tower blocks in Milton Keynes for one second. Looking deeper into the information from Europe, most people live in low-rise three and four-storey purpose-built apartment blocks.

To begin with, these new apartments/flats need to be justly desirable for Milton Keynes families and be seen as such by the local population. The building materials used, communal spaces, the building`s functionality, and design specifications must not only meet but exceed current building specs on houses, or planning permission should withhold.

Maybe the Government could incentivise builders to build apartments/flats instead of houses to improve the supply of quality apartments/flats with tax breaks?

Things will take decades to change, yet we thought it was appropriate to discuss the matter in such an environment as this.

HM Queen Elizabeth II

Fri, 09 Sep 2022 12:00:00 GMT
We are deeply saddened by the death of Her Majesty The Queen. She faithfully served the nation as our Sovereign during her long, happy and glorious reign. From all the team at MK Property, we extend our heartfelt sympathy to The Royal Family.

Advanced Office Closure

Tue, 13 Sep 2022 12:00:00 GMT
Please note, our office will be closed.

Milton Keynes Tenants` Spiralling Energy Bills are About to Become Milton Keynes Landlords` Problem

Wed, 21 Sep 2022 12:00:00 GMT
As gas and electric bills rocket for Milton Keynes tenants, Milton Keynes landlords who do not start to make energy efficiency upgrades face lengthy void periods and will have to discount their rents. This is irrespective of the Government`s plans to change the rules on renting properties with low Energy Performance Certificate (EPC) ratings.

Until six months ago, out of the thousands of tenants we have shown around Milton Keynes properties in all our years as an agent, we can count the number of tenants who have requested to see the EPC of the rental property on the one hand. Now, it`s the first question tenants ask.

The better the EPC rating, the lower the gas and electric bills.

Milton Keynes tenants are leaving their poor EPC-rated properties which are too expensive to run and moving into higher-rated EPC rental properties.

The average heating bill for the 12,700 Milton Keynes tenants will rise from £86.96 per month to £226.09 per month.

And their hot water bill will rise by £37.11 per month and lighting by £23.77 per month.

Each Milton Keynes tenant will have to find an extra £200.01 per month for their gas and electric bills.

To give you an idea of the extent of the money being spent by Milton Keynes tenants on heating alone (ignoring hot water or lighting), last year it was £13,252,458.64, and by 2023, it will be £34,456,392.46 a year.

Yet these stats don`t tell the whole story.

It is a legal requirement for every rented property to have an EPC which rates a property on its energy performance (like those washing machine or fridge ratings, albeit for a property). A is the best rating, and G is the worst.

Whilst the law states property cannot be rented with an EPC rating lower than an E in England and Wales, there are exceptions to this, meaning Milton Keynes rental properties are still being let legally with an F and G rating. Although legislation for a minimum E rating EPC requirement in Scotland was scheduled in 2020, it never passed through the Scottish Parliament because of the pandemic.

Let us show you the average saving in energy bills between the EPC rating of an average Milton Keynes rental property.

• A Milton Keynes rental property with a D rating will cost £38.50 more per month than a C-rated property
• A Milton Keynes rental property with an E rating will cost £67.66 more per month than a D-rated property
• A Milton Keynes rental property with an F rating will cost £97.16 more per month than an E-rated property

Both Westminster and Holyrood governments now propose introducing a minimum EPC of band C for all new tenancies from 2025 (and 2028 for existing tenancies).

Irrespective of this new potential legislation, those Milton Keynes landlords with low EPC ratings will now need to seriously consider making those energy efficiency upgrades to ensure their Milton Keynes rental properties continue to appeal to tenants.
We can see Milton Keynes rental property`s energy efficiency ratings filtering into rental prices over the winter months.

Milton Keynes rental properties with low EPC ratings will probably rent for between 4% to 10% less than higher energy proficient properties.

This means Milton Keynes landlords could have to accept between £58.80 and £147.00 per month less for an average Milton Keynes property with a low EPC rating compared to a high-rated EPC rental property.

Any Milton Keynes rental property with a lower EPC rating will also take longer to find a tenant, especially during the winter. This means some Milton Keynes landlords will have the prospect of void periods early next year.

We have seen more Milton Keynes rental properties coming onto the market in July and August, so if this trend continues, this will give Milton Keynes tenants much more choice. With the increased supply of rental properties, we certainly believe some tenants could decide to offer less on Milton Keynes rental properties with low EPC ratings.

So, what are the options?

We are experienced in reading EPC reports and am aware of the most cost-effective way to improve the EPC rating of your Milton Keynes rental property. Irrespective of whether you are a landlord client of our agency, another Milton Keynes lettings agency, or you even manage your property yourself – feel free to drop contact us. We will find your EPC on my database and give you 5/10 minutes of my time, over the phone, at no charge, to guide you on the best options. What do you have to lose?

STAMP DUTY UPDATE

Fri, 23 Sep 2022 12:00:00 GMT
The Chancellor has announced this morning a cut to the Stamp Duty tax in England and Northern Ireland.

Stamp Duty is paid by the buyer of any property and can cost thousands of pounds.

This is a permanent cut to the Stamp Duty threshold of how much a property has to cost before stamp duty is paid. Before the announcement, one had to pay Stamp Duty on any property above £125,000. That threshold has been increased to £250,000.

As stamp duty is paid on completion, anyone currently buying a property will benefit from this as it is applicable from today on any house purchase in England and Northern Ireland.

Anyone buying a second home will also save this money (although they will still have to pay the additional 3% levy for second homes)

Stamp Duty now starts at £250,001 at 5% for next £675,000 (the portion from £250,001 to £925,000).

You only pay 5% on the amount over £250,000 (ie If you buy a house for £325,000, you only pay 5% on the difference between £325,000 and £250,000 i.e. £75,000 - 5% of £75,000 is £3,750)

Liz Truss and the Chancellor Kwasi Kwarteng believe that cutting stamp duty will support economic growth by encouraging more people to move home or jump on the property ladder.

Stamp Duty also decreases labour market elasticity as it curtails people from selling up and buying elsewhere, where the jobs are.

This is great news for anyone looking to move home in the next few months as it will save them up to £2,500, money that could be used to make the house move easier.

𝙏𝙄𝙋𝙎 𝙁𝙊𝙍 𝙇𝘼𝙉𝘿𝙇𝙊𝙍𝘿𝙎 - 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙄𝙉𝙎𝙋𝙀𝘾𝙏𝙄𝙊𝙉𝙎

Tue, 27 Sep 2022 12:00:00 GMT
𝙏𝙄𝙋𝙎 𝙁𝙊𝙍 𝙇𝘼𝙉𝘿𝙇𝙊𝙍𝘿𝙎 - 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙄𝙉𝙎𝙋𝙀𝘾𝙏𝙄𝙊𝙉𝙎

A landlord`s right to access property – whether for viewing or inspecting purposes – is a provocative topic and remains one of the leading causes of tension between landlords and tenants.

Landlord and tenant rights can often feel like they are in direct conflict. This is how some landlords have been accused of trespassing or sued for unlawful entry by a disgruntled tenant.

However, you can easily avoid disputes if you and your tenants know your responsibilities.

Landlords must understand that, although they own the property, they still require some agreement from the tenant before accessing it. Equally, tenants should be aware that refusing access to landlords can lead to formal action being taken against them.

Unfortunately, the ever-changing legislative landscape means that tenancy agreements are continuously adjusted to address the changes. As a result, your rights and responsibilities are not always clear.

Of course, there may come a time during the tenancy when you wish to access the property for varying reasons. With this in mind, it`s important to know your responsibilities towards tenants.

1. Contractual terms and `quiet enjoyment.`
Within your tenancy agreement, typically under the Landlord Obligation section, you may come across the term `covenant to quiet enjoyment`. This is an established rule in law, even if it isn`t explicitly detailed in the agreement.

This covenant means that your tenants are entitled to enjoy the property without interference from you, your letting agency, or anyone else.

Per tenant and landlord law, you`re required to give 24 hours notice before you visit. Otherwise, your tenants are within their legal rights to refuse you entry (except in particular circumstances). You can give notice via email or a message.

However, your tenancy agreement may also include a term that gives you a right to enter the property. But given the nature of the topic, the varying circumstances as to why you wish to gain access, and the reasons behind a tenant refusing permission, there is no `one size fits all` answer.

One of the fundamental principles of a tenancy is exclusivity. Because of this, and despite a contractual provision in a tenancy agreement permitting you to access the property, it is always wise to seek your tenant`s permission.

2. Access to inspect the property
Landlords primarily request the right to access a rental property for repairs, maintenance, and property inspections.

There are mandatory safety inspections that all UK rental properties must have, including:
• Gas safety inspection (every 12 months)
• Electrical inspection (every five years)
• Energy performance assessment (every ten years)

Landlords may also want to visit the property midway through the tenancy to ensure everything is in good condition and to address any issues – also called a mid-term inspection.

If you wish to inspect the property`s condition, you have an implied right to do so upon giving your tenant at least 24 hours` notice. That said, you must have a genuine reason to undertake that inspection and not just because you want to.

It is a common assumption of landlords and their agents that, as the tenancy agreement provides access upon what is usually 24 hours` notice, they have the right to access the property after the said notice. However, landlords must request access whenever they wish to enter the property.

3. Access when carrying out repairs
As stated in Section 11 of the Landlord and Tenant Act 1985, landlords must maintain and repair the property`s structure, exterior, and installations for the water, gas, electricity supply, and sanitation.

To carry out these repairs, the landlord, or the engineer instructed by the landlord, will need access to the property.

Additionally, as mentioned above, the landlord also has a right to view the property`s condition during `reasonable hours`, but only once they have given the tenant a minimum of 24 hours` notice.

It is also implied within points set out by tenant and landlord law that all assured tenancies, including an assured shorthold tenancy, will include a term that states the tenant shall afford the landlord access to the property to carry out repairs.

This falls within the key landlord responsibilities, meaning that even if there isn`t a term in the tenancy, the law implies it to be the case anyway.

4. Access after giving notice
Although you have given your tenant enough notice, this doesn`t mean you can enter the property at any time of day.

Your tenancy agreement will likely state that you will only visit during reasonable hours; if it doesn`t, you should act as if it does.

`Reasonable` will depend on the circumstances of your visit and the type of tenants you have in occupation. This is particularly important when you must access the property for inspections and similar scenarios.

For example, if your tenant works night shifts and you expect to visit at 9 am the following day to show prospective tenants the property, your tenant may be asleep. Therefore, it is unlikely to be a `reasonable` time to visit for this purpose.

5. Access for emergencies
In extreme situations, you as the property owner have a right of entry without giving your tenant notice or obtaining their permission.

However, this only applies in the event of an emergency, such as risk to life or risk of severe damage to the property, such as:
• A fire in the property
• A strong smell of gas
• Structural damage that requires urgent attention
• Water flowing from the building

However, if the tenant refuses access or has done in the past, landlords would be well advised to apply to the court for an injunction to enter the property.

If the tenant has unreasonably refused you access, your costs of doing so may be recoverable from them; this falls within your rights as a landlord.

It is also wise to make clear notes of any issue, obtain photographic evidence, log any police incident number, and get signed statements from any contractor.

6. Being refused access
There are some instances where a tenant may refuse access to the property – for example, if the time or date doesn`t work for them. In this case, you can rearrange for a more suitable time.

If a tenant is ignoring your attempts to get in touch, it`s worth providing further information on the reason for visiting. For example, you should inform your tenants in writing if it`s a gas safety check.

When every other avenue has been exhausted, you may make an application to the court for an injunction. This will give you a court order allowing you rights to enter the property without your tenant`s permission.

It`s unlikely that the situation will escalate to this level, but there are other legal options available, including:
• Serving a Section 21 notice seeking possession (some reforms are being made to this).
• If the tenancy is still within the fixed term, it may be necessary to go for a court hearing under Section 8, citing Ground 12: any obligation of the tenancy has been broken. Although a discretionary ground, a judge is likely to be sympathetic if they are convinced the motivation is genuine.

7. Entering without permission
Entering the property without notice or permission violates the tenant`s right to quiet enjoyment and The Housing Act 1988. In this circumstance, landlords could be prosecuted for harassment.

The Protection from Eviction Act 1977 states that a landlord will be `guilty of an offence` if their actions are `likely to interfere with the peace and comfort of the residential occupier or members of their household`.

Essentially, a tenant has the right to exclude others, including the landlord, from the property. Unless there is an emergency, any access to the property will need to be with the tenant`s consent.

Having a clear line of communication will help to allay any misunderstandings. For this, it`s helpful to appoint a reputable letting agent to foster a healthy relationship between you and your tenant.

Milton Keynes House Prices Ought to be Falling – these are the reasons they are not.

Wed, 28 Sep 2022 12:00:00 GMT
Looking at the newspapers with their doom and gloom headlines, you would think that the Milton Keynes property market (and the British property market) would be on its knees.

Yet ring some Milton Keynes estate agents for a viewing or free valuation, and if you can get an appointment within a week to ten days, you are doing well!

British properties continue to sell in good numbers. In July and August 2022, sales have been agreed on an average of 25,476 UK properties per week.

Interesting when compared to the averages of 27,351 sales agreed per week in 2021 and 26,382 sales agreed per week, year to date in 2022.

So why is the Milton Keynes property market defying all expectations?
It is because there is an absolute shortage of properties to buy on the books of Milton Keynes estate agents, meaning Milton Keynes house prices are being kept buoyant (as demand exceeds supply).

Today, there are 997 properties available to buy in Milton Keynes. Roll the clock back to October 2007, the month before the last house price crash, and it was 3,685.
That`s 73% fewer properties to buy today in Milton Keynes than the month before the property crash.

Notwithstanding suggestions that the Bank of England`s higher interest rates would peter out British house price growth, the continued limited supply of properties coming onto the market has helped Milton Keynes house prices climb.

Milton Keynes house prices are 12.1% higher today than a year ago.

Nevertheless, there is evidence that the insane demand for property has started to ease, and supply is increasing, which means that the direction of the Milton Keynes housing market will begin to change in the coming months.

This can be seen in several ways.

Back in January and February (2022), 8,094 UK properties per week were reducing their asking prices, whilst this July and August that had risen to an average of 13,115 UK properties per week. This is significant as some `optimistic` homeowners who placed their properties on the market in the spring and early summer have had to reduce their `optimistic` asking prices to attract buyers.
Also, the number of UK house sales falling through (i.e., when the sale is agreed yet the sale falls through before the legal paperwork is completed) is starting to creep upwards from an average of 5,558 properties a week in the spring of 2022 to 6,854 per week in July and August 2022.

Milton Keynes house prices have risen over recent times; the latest figures are based on what was selling in the late winter/early spring of this year and subsequently completing the sale in the early summer.

The prices obtained by the estate agents on properties achieving a sale in Milton Keynes today (i.e. in the autumn of 2022) are slightly lower than what was obtained nine months ago. This means the house statistics published in early spring 2023 will slightly reduce. Nothing to worry about – we wanted to give you a heads up and not to be concerned. The simple fact is …

we are returning to a more normal Milton Keynes housing market this autumn, compared to the crazy last 30 months since the end of lockdown one.

With UK inflation standing at 9.9%, this brings an interesting scenario for Milton Keynes property values.

Reducing ‘real` wages will hit first-time buyers and existing homeowners` disposable income, while the same high inflation will make the Bank of England increase interest rates.

These things will significantly reduce homebuyers` capacity to afford their mortgages as the fewer people who can take out a mortgage; the fewer buyers will buy homes.

The Bank of England base rate currently stands at 2.25%, yet forecasts suggest it could end the year between 2.75% and 3%. Yet let us not forget the long-term average over the last 50 years has been between 7.1% and 7.2%, and many mature Milton Keynes homeowners will remember Bank of England Base Rates of 17% in 1979, so these sorts of increases are still off a low base.

During these autumn months though, the lack of properties on the market and available to buy still support Milton Keynes house prices. The newspapers compete for attention and use clickbait titles to generate more interest in the publications.

The simple fact is that unless something seismically happens in the world to change things materially, the Milton Keynes and British property markets will continue to harden slowly and will face some different challenges compared to the last 30 months, but fundamentally Milton Keynes house prices will remain broadly neutral over the next 12 to 18 months.

Milton Keynes Property Market - What will the stamp duty cuts and interest rate rises mean for Milton Keynes homeowners and landlords?

Wed, 05 Oct 2022 12:00:00 GMT
Last week the Bank of England increased interest rates to 2.25% and they are expected to be 3.25% by early next year. This increase will make the monthly mortgage payments more expensive for first-time buyers, an issue dubbed by some as the `property affordability crunch.`

It will also damage the household budgets of homeowners coming off their fixed-rate mortgages in the next 12 months.

So how many homeowners are coming off their fixed rates in the next year?

Of the 7.97 million homeowners with a mortgage in the UK, 6.1 million of them are on a fixed-rate mortgage at an average rate of 2.04%. Industry statistics show around 1.3 million homeowners are coming off their fixed rate in the next 12 months.

The current crop of fixed-rate mortgage deals available today have already had the recent increase in the base rate ‘priced-in` for weeks.

The cheapest 5-year fixed-rate today for a 65% Loan to Value re-mortgage (i.e., you are borrowing 65% of the value of your home) is a mortgage rate of 3.8% with Royal Bank of Scotland (RBS).

So, what will be the difference in mortgage payments between a 2.04% mortgage and a 3.8% mortgage?

Say an average Milton Keynes first-time buyer bought their first home in November 2019 on a 25-year mortgage. They had a 3-year fixed-rate mortgage, and let`s assume they fixed it at 2.04% (as mentioned above), meaning their fixed-rate deal finishes next month. They have £260,000 outstanding on their mortgage, and their Milton Keynes house is worth £400,000. They would have been paying £1,107 per month for the last three years (assuming they took out a 25-year repayment mortgage).

On the RBS deal above, they will have to start paying £1,548 per month from November when they come off their initial rate – a rise of £441 per month in mortgage payments. That`s quite a rise and potential blow to their household budgets.

Yet if they pushed back the repayment term from 22 years to, say, 35 years, that reduces the payment to £1,120 per month – something to consider if you are re-mortgaging in the coming 12 months.

What will the stamp duty changes mean for
Milton Keynes property owners?

PM Liz Truss and Chancellor Kwasi Kwarteng believe that cutting stamp duty will support economic growth by encouraging more people to move home or jump onto the property ladder.

Stamp duty also has other harmful side effects as it decreases labour market elasticity and curtails people from selling up and buying elsewhere, where the jobs are.

Also, stamp duty makes mature homeowners stay put in their large homes rather than downsizing. This reduction in stamp duty will encourage those mature homeowners to move, thus freeing up their large family homes for the younger families that need them.

The Chancellor doubled the zero-rate stamp duty band from £125,000 to £250,000, passing a stamp duty tax saving of up to £2,500 for all English homebuyers.

Also, tax savings are even more significant for first-time buyers, particularly in areas with high house prices, such as London and the South East. They can save a maximum of £11,250 in stamp duty – with a new zero-rate band of £425,000, based on a higher £625,000 spend cap (i.e., the house they buy can`t be over £625,000 for them to qualify for the tax relief).
So, what effect will these stamp duty changes have on the Milton Keynes property market? Looking at recent events in the local property market is the best place to start.

Of the 3,888 transactions in the Milton Keynes area since June 2021, 1,308 were below £250,000. These would now be tax-free!

Unsurprisingly, most housing transactions in Milton Keynes were above the £250,000 threshold, yet irrespective of that point, it`s a saving of up to £2,500 for all future Milton Keynes homebuyers.

Anyone currently buying a house in Milton Keynes and not yet completed on their purchase (completion is when you have paid the money for your home and collected the keys) will be in line to make this saving.

Milton Keynes landlords purchasing buy-to-let properties will also save money with the stamp duty cut (but they will still be liable for their second home stamp duty levy of 3%).

Overall, this is a welcome move to help the Milton Keynes property market.

Yet will the stamp duty threshold rise have the seismic effect that the Rishi Sunak stamp duty holiday did in 2021, where just under 40% more people moved home than the long-term
30-year average?

We are sure the stamp duty cut will somewhat offset the rising costs in mortgage rates mentioned in this article and cushion the blow to the property market.

A blow to what you might ask?

Well, many people judge the property market`s health by house prices.

The average value of a Milton Keynes property stands at £343,767 and has risen 21.7% in the last five years. Not bad, eh?

But we believe there is a better way to judge the health of the local property market, and that is the number of people moving home (i.e., housing transactions).

You might be asking yourself why we should be more concerned about the number of property transactions and not the change in property values.

Many economists believe the number of property transactions is a far more accurate bellwether for the health and potency of the local housing market. A greater number of people moving home is better for the whole economy (i.e., what these changes are being made for) than a smaller number of transactions, whilst the same can`t be said for higher house prices.

So, what is going to happen to Milton Keynes house prices?

We believe the growth in Milton Keynes house prices achieved in 2021/22 is not sustainable into 2023.

In conjunction with the price cap on energy bills, the stamp duty change, the reversal of the rise in National Insurance and the drop in Income Tax will mitigate house price drops. Yet, we foresee a ‘slight` realignment in the house prices being achieved in 2023, compared to 2022.

The more significant impact these changes will have is the number of people moving home in the next 12 months.

We have been forecasting a 15% to 20% year-on-year drop in Milton Keynes property transactions in 2023. Following this stamp duty cut and the measures mentioned above, we believe it will be lower, yet around 5% lower.

To conclude, we predict we will have slightly lower house prices and fewer people moving home in Milton Keynes, but not any way a crash that many thought was on the horizon.

Before we go though, let us share some thoughts on whether stamp duty is a fair tax.

Now, this is almost a topic for a standalone article itself. Some economists believe that removing stamp duty (which raised £14.1bn in tax in 2021) and replacing that lost income to the Exchequer by increasing council tax on more expensive properties would do a lot more than other intended tax cuts to boost economic growth.

According to some commentators, the way UK Government taxes housing is flawed. They suggest instead of taxing an infrequent property transaction particularly harshly (the average stamp duty bill is £10,600), the Government should tax living in a house more, especially those who live in the higher priced properties.

So let us see how viable that could be…

Even if council tax was frozen for bands A to D (the lower priced properties), and the uplift between the more expensive council tax bands was doubled on each step between band D and H (so a typical band E property owner would see their council tax rise from £2,473 to £3,628 per year and a typical Band H see a rise of from £3,435 per year to £5,790 per year), such massive increases in council tax would be political suicide for the wealthy Tory voting homeowners and only raise £5.28bn – a long way from the £14.1bn currently raised.

Now, if the £14.1bn tax raise were spread evenly over all council tax bands, the average band D property would need to rise by £490 per year, and even a band A would increase by an extra £382 a year … something that again would be political suicide.

Yes, stamp duty is flawed. It`s just every other option has more significant flaws.

Waiting for the Milton Keynes House Market to Crash will Cost you £49,443

Wed, 12 Oct 2022 12:00:00 GMT
Doom and gloom in the British property market or clickbait doom-mongers?

Newspapers and clickbait 24-7 news websites, desperate for clicks, are peddling a story of a doomsday time for the economy, particularly the property market, as interest rates and inflation create the perfect storm for the UK property market.

So, let us look at what is happening in the British property market and whether house prices will drop.

Yes - Milton Keynes house prices will be lower in 24 months.

Yet the reductions in what we believe a property will sell for in the next couple of years compared to the doom-mongers is wildly different.

The doom-mongers are saying the 2022 property market will be like the crash years of 1988 and 2008.

We have to disagree, let us explain what the difference is this time compared to the previous house price crashes.

To start with …

56.25% of homeowners don`t have a mortgage, whilst in 1988,
that was 35.8%. These people are shielded from the interest rate rises.

The next point is negative equity.

Yes, negative equity was an issue after 1988 when everyone had an endowment mortgage, so they never paid any of the capital off their mortgage. Therefore, when house prices dropped, negative equity was a massive issue as people owed more than what their house was worth.

By 2008, nobody was taking out endowment mortgages, yet still, 1 in 2 were interest-only mortgages (meaning the capital wasn`t being paid off). Today, 17 out of 20 homeowners are on repayment mortgages - so they have more home equity, so negative equity isn`t so much an issue.

The issue is the increasing interest rates. Yes, they are rising … albeit from artificially low rates.

In 1988, nearly everyone was on a variable rate mortgage and an average mortgage interest rate was 10.8%, and they rose to 16.4% by 1990. That hurt, yet most survived.

In 2008, 6 out of 10 homeowners had learned their lesson and were on fixed rates at an average rate of 6.07%. Today 17 out of 20 homeowners have long-term fixed rates with an average of 2.14%.

Also, it must be noted that homebuyers have been stress tested for 6% to 7% mortgage rates since 2014 because of the Bank of England MMR rule changes. It will be challenging, and lifestyle choices will need to be made, yet we should not see the dumping of houses on the market as we did in 2008/9.

The next issue is the number of mortgages being pulled. Yes, around 1,000 mortgage deals have been removed in the last week - yet there are still 3,000+ deals out there … and most are still fixed rates.

Also, let`s not forget that 1 in 5 people rent today and are protected from all this, yet in 1988, only 1 in 14 rented.

Therefore, the economic conditions surrounding the house price
crash in 1988 and 2008 are not there now.

Don`t get us wrong, those homeowners coming off their fixed rates of around 2% in the coming years will have to make tough choices as they will see their monthly mortgage payments rise substantially.

Yet, as we have discussed in other articles, extending your mortgage term can significantly affect your monthly mortgage payments and there are things that homeowners should be doing now to mitigate the issue in the coming few years.

But back to the question, should people wait to move, and what
will happen to Milton Keynes property prices?

We believe that subject to nothing seismic happening in the world, Milton Keynes property values will be broadly neutral and slowly drift downwards over the next 24 months. We believe they will drift because of the issues of inflation and mortgage affordability, yet we won`t have a crash for the points made in the first part of this article. We believe Milton Keynes property will be selling for sums of 4% to 6% less in a couple of years compared to today.

This means if we achieve prices of 4% to 6% less, homeowners will still be getting the same prices the property market was getting in the summer of 2021 – again – nobody was complaining about those!

However, let us assume we are wrong with my thoughts, and we see
a significant house price crash; what then?

Well, let us look at the last two house price crashes first.

The housing crash of 1988 saw the average house in the UK drop from £63,784 to £50,167, a drop of 20.09%.

The housing crash of 2008 saw the average house in the UK drop from £184,132 to £154,065, a drop of 16.33%.

So, let`s assume that Milton Keynes house prices fall by 18% -
surprisingly, it will not help Milton Keynes buyers.

In previous house price crashes, people tend to find their careers are more at risk, and in turn, their wages don`t rise as much. It is the younger generation (i.e., first-time buyers age range) that often gets hit the toughest by these recessions.

Let`s look at Milton Keynes first-time buyers.

If Milton Keynes first-time buyers wait until 2024 to buy and Milton Keynes property values drop by 18%, that will prove more expensive. Let us explain why …

In the last property crash of 2008, lenders withdrew 5% deposit mortgages. The smallest mortgage that first-time buyers could obtain was with a 10% deposit, and even those were hard to come by.

When writing this article, first-time buyers can obtain a 5% deposit mortgage for a fixed rate of 3.92% for five years.

The typical first-time buyer terraced house in
Milton Keynes sells for £263,449.

If first-time buyers were to buy now, on this mortgage deal, they would have to find a £13,172 deposit, and their monthly mortgage payments would be £1,096.18 per month.

So, let`s say property values in Milton Keynes do drop by 18% in the next 24 months; the terraced house would now be worth £216,028, a significant saving in the purchase price.

Or is it?

Everyone believes the Bank of England will raise interest rates further, so let`s assume they go to 5.5% by the autumn of 2024. That will mean the rate for a 10% deposit first-time buyer mortgage will be in the early 7%`s, so let`s assume 7.19% (because the lenders have in the past increased the gap between the Bank of England base rate and the mortgage rate in more challenging economic times to allow for the extra risk).

The monthly mortgage payment in two years on the 7.19% mortgage would be £1,268.09 per month, and in those two years, you would have had to have saved an additional £8,430 to make up your 10% deposit of £21,603.

So even if Milton Keynes`s house prices did drop by 18%, the first-time buyer
would be £2,063 worse off a year in mortgage payments
(and would have to save many thousands extra for their deposit)

... and then there is the other cost of waiting.

You have two years` worth of rent to pay. The average rent for a Milton Keynes property is £1,451 per month.

If you waited a couple of years for Milton Keynes house prices to drop by 18%, you would spend £34,824 in rent plus have higher mortgage payments in 2024/5/6 and with the extra deposit mentioned above it would add up to an additional £49,443 over the next five years.

Yes, the price you paid for your Milton Keynes home would be lower if you waited two years. Yet, you would only benefit from that when you sold on versus the economic pain of two years of extra renting, the higher deposit and higher mortgage payments in a couple of years.

This doesn`t even consider the emotional cost of putting your life on hold for two years, and there is no guarantee that the mortgage lending criteria in two years would allow you to step onto the property ladder.

So, now we have shown that waiting will cost you financially and emotionally, what are your thoughts on the matter?

Milton Keynes house prices will drop, yet did you realise it will cost you more, even if house prices are falling?

Do you believe the doom-mongers, or do you believe in the robust nature of the British economy?

Don`t forget, George Osbourne said house prices would drop by 18% in May 2016 if we voted to leave the European Union, whilst many economists said house prices would fall by 5% to 10% when Covid hit in March 2020.

And we all know what happened to those predictions now.

If you believe you will be better off owning your own Milton Keynes home rather than renting one, don`t bother to wait for the suggested house price crash that may never happen.

HAPPY MOVING-IN DAY 🥳👏🥳

Wed, 12 Oct 2022 12:00:00 GMT
HAPPY MOVING-IN DAY 🥳👏🥳

We`ve been busy with lots of move in`s recently. Here are a few happy tenants 😁 We would like to wish them all the best in their new home 🏡 We hope you enjoy the box of goodies😋

If you`re a landlord, have a property you want to let out, and would like our help, contact us on 01908 694694.

𝙒𝙄𝙉𝙏𝙀𝙍𝙋𝙍𝙊𝙊𝙁 𝙔𝙊𝙐𝙍 𝙃𝙊𝙈𝙀

Thu, 13 Oct 2022 12:00:00 GMT
𝙒𝙄𝙉𝙏𝙀𝙍𝙋𝙍𝙊𝙊𝙁 𝙔𝙊𝙐𝙍 𝙃𝙊𝙈𝙀

Winter can strain our homes, so preparing for the colder, wetter months is a smart move for those looking to avoid unnecessary maintenance costs in what is already a tough few months for our household finances.

However, high demand for professional tradespeople can also mean weeks on end waiting to get work done should the worst happen, so planning is the smart move to avoid a winter without hot water or a leaking roof.

Research by property maintenance solution provider, Help me Fix, has highlighted five maintenance tasks homeowners need to consider before winter arrives and how current waiting times mean they`re best to get their house in order sooner rather than later.
Read here: https://www.propertyreporter.co.uk/at-home/top-tips-to-winterproof-your-home.html?fbclid=IwAR0JK9118HQSC4cME7HjBQESb8y3kpJPIJQ9x5fWkYqQ9cs7_o5vEjCby64

#miltonkeynes #property #cityofmk #homes #winter #maintenance #miltonkeynesbusiness

𝙏𝙊𝙋 𝙏𝙄𝙋𝙎 𝙏𝙊 𝘼𝙑𝙊𝙄𝘿 𝘼 𝘽𝙊𝙄𝙇𝙀𝙍 𝘽𝙍𝙀𝘼𝙆𝘿𝙊𝙒𝙉 𝙏𝙃𝙄𝙎 𝙒𝙄𝙉𝙏𝙀𝙍

Mon, 17 Oct 2022 12:00:00 GMT
𝙏𝙊𝙋 𝙏𝙄𝙋𝙎 𝙏𝙊 𝘼𝙑𝙊𝙄𝘿 𝘼 𝘽𝙊𝙄𝙇𝙀𝙍 𝘽𝙍𝙀𝘼𝙆𝘿𝙊𝙒𝙉 𝙏𝙃𝙄𝙎 𝙒𝙄𝙉𝙏𝙀𝙍

If you didn`t know already, Monday the 17th of October this year is `Boiler Switch On Day`, widely recognised as the most popular day for people to switch their boilers on as they prepare for the colder months.

Ahead of this, Ideal Heating are sharing its expert advice on how to prepare for switching your boiler on and, as gas prices rise, what to look out for to ensure you get the most out of your boiler this winter.

With well over three-quarters of boilers breaking down around Boiler Switch On Day and costing up to £500 to repair, the following tips should help to keep your home warm and save you money in the long run.

1: Service your boiler

Having a regular boiler service will ensure your boiler is running efficiently and safely.

We recommend having your boiler serviced annually, so when the heating engineer is there it`s a good idea to book another service for a year`s time. During a boiler service, any faults will be brought to the attention of a professional.

A heating engineer can service your boiler in around an hour - be prepared that this may leave you without hot water until they are finished. Boilers have a warranty of around 10 years, but if you have not had regular services the warranty does not stand.

2: Gradually switch the heating on

If you usually don`t use the heating during summer, you should plan to briefly switch it on once or twice a month.

This will give you the chance to detect any problems with your boiler before you need to start using it regularly - better to realise your boiler is broken in summer than in winter when you really need it! This also helps prevent the build-up of grime, dust and other debris which can cause boiler breakdown. Following this tip can also prevent pipe corrosion - the most common cause of boiler leaks.

3: Don`t turn the heat up too fast

Turn the heat up gradually, having a boiler on too high will waste money and energy.

We recommend turning the heat up 1 degree at a time until you get whatever temperature feels best to you. Most households should be between 18 and 21 degrees, however, it should be slightly higher for the elderly.

4: Get a smart thermostat

We strongly recommend investing in a smart thermostat which you can control wherever you are. Being able to control your heating even when you are out of the house takes the unnecessary strain off boilers whilst saving money and energy. Our Halo smart thermostat allows you to control your heating from your phone, meaning you can heat your home more efficiently.

A smart thermostat means you can limit heat wastage and increase energy efficiency.

5: Bleed radiators

If you notice the heat isn`t circulating the whole radiator evenly, it probably means it needs bleeding.

Bleeding gets rid of trapped air that could have built up over the period it has been switched off for. By not bleeding a radiator that needs it, you will be wasting money and energy, whilst not heating your home efficiently. We recommend that you bleed your radiators annually, even if they are working fine.

To find out how to bleed your radiator safely, follow this guide.

If there is an issue that persists, it could be a sign of sludge build-up, which could hinder your heating system.

Without taking the above precautions in the run-up to Boiler Switch On Day, you could be facing a number of boiler issues this winter which can leave you wasting money and energy during the colder months. https://www.propertyreporter.co.uk/at-home/top-tips-to-avoid-a-boiler-breakdown-this-winter.html?SRC=MC

Will Milton Keynes buy-to-let continue to be profitable in the next few years?

Wed, 19 Oct 2022 12:00:00 GMT
Will Milton Keynes buy-to-let continue to be profitable in the next few years?

Being a Milton Keynes landlord is undoubtedly a challenge. The glory years of making money from ‘any old property` are certainly in the past. With increased legislation and taxation from Government and the cost-of-living crisis (which will result in some Milton Keynes tenants struggling to pay their rent), times are challenging for many landlords.

Then newspapers are full of stories of landlords being pushed into the red as mortgage rates continue to rise. A landlord last summer could have fixed their 5-year buy-to-let rate with a 25% deposit at 1.86%, whilst today the best 5-year deal is with Barclays at 4.36%. This increase will add more than £246 per month to the landlord`s mortgage bill for the average UK buy-to-let property.

Landlords` mortgages stand at £237.81bn, meaning collectively, landlords could have to pay an additional £7.11 billion per year in mortgage interest payments.

Next, the press is reporting in Q2 2022 (when compared to Q2 2021), landlord possession claims for arrears increased from 6,997 to 18,201 properties (a rise of 160%), property orders from 5,431 to 14,319 (an increase of 164%), warrants from 3,786 to 7,728 (a rise of 104%) and landlord repossessions from 1,582 to 4,900 (a rise of 210%).

This is on the back of the Section 24 tax changes made a few years ago and ahead of expensive energy efficiency upgrades that the Government is expected to legislate for in the coming 12 months.

Doesn`t sound good for landlords.

Until you look past the headlines and look at the actual detail.

79.93% of UK buy-to-let (BTL) mortgages are interest-only mortgages (compared to 12.29% of homebuyers), meaning the repayments are considerably lower than typical homebuyer mortgages. Therefore, the rise in interest rates won`t hit landlords` profitability as much as many thought initially.

93.21% of all new BTL mortgages agreed in the last two years have been on a fixed rate mortgage, and 73.27% of all existing BTL mortgages are on a fixed rate. So, the increase in mortgage payments will only affect one in four landlords on variable-rate mortgages.

Let us not forget that less than one in three landlords have a BTL mortgage, meaning two out of three landlords aren`t affected by these interest rate rises.

The average rent of a Milton Keynes property is now £1,554 per month, an impressive rise of 8.6% compared to a year ago.

Those possession orders mentioned above look high until you realise that there are 4.4 million properties in the private rented sector. That means only 2.04% of UK rental properties had arrears bad enough for landlords (or agents) to start possession proceedings to evict the tenant. Also, only 0.045% of tenants were evicted through the courts in a calendar year.

Talking of arrears, recent studies using statistics from the Government and other letting industry sources show that…

landlords who didn`t use a letting agent to manage their property were 272.5% more likely to be two months or more in rent arrears in 2021. It pays to use a letting agent!

Next, the potential cost of upgrading rental properties` energy efficiency.

The proposed changes in the MEES regulations a minimum energy efficiency (measured by its Energy Performance Certificate (EPC)) to a ‘C` rating on new tenancies from 2025 and existing tenancies by 2028. That will cost, on average, £10,000+ per property.

Yet it cannot be forgotten when the rules changed in 2018, properties had to have a minimum EPC rating of E in England and Wales to be legally compliant. If a landlord of an `F` or `G` rated rental property could prove that it would cost more than £3,500 to make those improvements to their EPC rating, then that was the most the landlord had to pay. No doubt something similar will take place in the future proposed legislation.

Then there is the profitability of renting. Rental yields are the primary guide to profitability in buy-to-let.

Yields are starting to rise as Milton Keynes rental growth is beginning to outstrip Milton Keynes house price growth.

The average yields being achieved in Milton Keynes today are:
• 1 bed – 5.3% yield
• 2 bed – 5.1% yield
• 3 bed – 4.5% yield
• 4 bed – 3.9% yield
• 5 bed – 3.8% yield
Yet investing in buy-to-let isn`t just about the yield.

Demand from tenants plays a massive part in the success or failure of your buy-to-let investment, so other yardsticks, such as void periods, should be considered. There is no point in securing a higher-yielding rental property if that buy-to-let investment remains empty.

Our research has found that the Milton Keynes overall void period average so far is 41.4% lower than 18 months ago, reducing from 29 days in April 2021 to 17 days in September 2022 (the void period being the time it takes from the date of an old tenant moving out until the new tenant moves in).

Finally, buy-to-let investment is also an excellent hedge against inflation compared to other investments. If you would like more information on that, give us a call, as it`s too long to post here.

In conclusion, the days of buying any old Milton Keynes buy-to-let property at any price and making loads of money from it as easy as falling off a log
are gone!

The next few years will be challenging for everyone. Still, with the advice and opinion of a decent Milton Keynes letting agent to guide and support you on your buy-to-let journey, buy-to-let will continue to be a profitable investment.

You need to review your rental portfolio regularly. See how your portfolio measures up against yield vs capital growth see-saw. Review your mortgage financing and EPC status of your portfolio.

If you would like a no obligation chat with us to discuss your options as a new potential landlord or an existing landlord with a rental portfolio, then let`s talk.

Let us see whether your expectations from buy-to-let match your potential investment in Milton Keynes property. We look forward to you picking up the phone or sending us a message for a no-obligation chat.

"𝙄𝙏 𝙒𝘼𝙎 𝙇𝙄𝙆𝙀 𝙏𝙃𝘼𝙏 𝙒𝙃𝙀𝙉 𝙄 𝙈𝙊𝙑𝙀𝘿 𝙄𝙉!"

Thu, 20 Oct 2022 12:00:00 GMT
"𝙄𝙏 𝙒𝘼𝙎 𝙇𝙄𝙆𝙀 𝙏𝙃𝘼𝙏 𝙒𝙃𝙀𝙉 𝙄 𝙈𝙊𝙑𝙀𝘿 𝙄𝙉!"

If you`re a landlord, you will most likely have heard this from your tenant at some point, usually when checking them out of your property. Having a clear document report showing the condition when they start renting your property is crucial and will be worth the cost if needed. If you don`t have anything to prove what it was like, it`s your word against theirs.

𝙒𝙃𝘼𝙏 𝙄𝙎 𝘼𝙉 𝙄𝙉𝙑𝙀𝙉𝙏𝙊𝙍𝙔 𝙍𝙀𝙋𝙊𝙍𝙏?

The inventory report is a schedule of condition report of the property, which details the condition in which you provide the property to the tenants at the start of the lease, including cleanliness, colours of walls if there are any marks etc. The inventory report will then be used to check the property`s condition when the tenant is leaving the property at the end of the lease. This will be used as evidence if you wish to make a claim on the tenant`s deposit for any damages. Without any documentation, you would be unable to claim on the tenant`s deposit for damages. It is worth noting, you will have to take into account fair wear and tear. In essence, fair wear and tear is the deterioration of an item or area due to its age and that which would be reasonably expected over the course of a tenancy, that is not due to the tenant`s actions or omissions.

It is a common misconception that producing a property inventory is simple, and only needs a basic list of the contents and condition of the property documented.

Reports are often:

❌ Too basic
❌ Lack detail with inadequate descriptions and condition comments
❌ Based on opinion rather than fact
❌ Often fail to list all the rooms/property components
❌ Lack photographic or video evidence to highlight cleaning issues, damage and maintenance issues
❌ Don`t include a cleanliness schedule (schedule of condition)
❌ Fail to provide the report to the tenant for comments/signature

𝙈𝙔 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙄𝙎 𝘾𝙇𝙀𝘼𝙉 𝘼𝙉𝘿 𝙏𝙄𝘿𝙔; 𝘿𝙊 𝙄 𝙍𝙀𝘼𝙇𝙇𝙔 𝙉𝙀𝙀𝘿 𝘼𝙉 𝙄𝙉𝙑𝙀𝙉𝙏𝙊𝙍𝙔?

Even if your property is unfurnished, in good decoration, clean and tidy or contains what you consider to be low-value fittings or fixtures, an inventory report is vital.

For example, if the property walls are in ‘good condition`, are painted in a magnolia shade throughout at the start of the tenancy and have no issues, without a thorough inventory report, a landlord will struggle to prove any deterioration like heavy marks, holes or poor redecoration should the tenant fail to maintain the property.

𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐢𝐬 𝐜𝐫𝐮𝐜𝐢𝐚𝐥 𝐚𝐧𝐝 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠 𝐰𝐞 𝐭𝐚𝐤𝐞 𝐬𝐞𝐫𝐢𝐨𝐮𝐬𝐥𝐲. 𝐈𝐟 𝐲𝐨𝐮`𝐝 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐥𝐞𝐚𝐫𝐧 𝐦𝐨𝐫𝐞 𝐚𝐛𝐨𝐮𝐭 𝐡𝐨𝐰 𝐰𝐞 𝐜𝐚𝐧 𝐡𝐞𝐥𝐩 𝐲𝐨𝐮 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭, 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐭𝐨𝐝𝐚𝐲 𝐚𝐭 𝟎𝟏𝟗𝟎𝟖 𝟔𝟗𝟒𝟔𝟗𝟒.

Happy Diwali

Wed, 26 Oct 2022 12:00:00 GMT
Wishing a happy and prosperous #Diwali to all! Hoping Diwali brings you health, wealth and happiness from all the team at MK Property 🪔

Could the humble ‘granny annexe` help solve the Milton Keynes housing crisis for mature homeowners?

Wed, 26 Oct 2022 12:00:00 GMT
Most Milton Keynes homeowners born before 1960 have been in their homes for more than 25 years.
Yet of all the properties sold in the UK since the first lockdown in the summer of 2020, 50% of those property owners had only been in their homes for six years and four months or less. That means we almost have a two speed housing market.
One market of homeowners in their 20s and 30s who move every four to five years and another property market of homeowners who, when they hit their late 40s, tend to stay put for decades. Yet now those mature homeowners, many of whom are retired and on fixed incomes with pensions, are finding it a lot more challenging to make ends meet with the cost-of-living crisis.
Evidence suggests nationally and locally, a lot of larger houses (property which tends to be owned by mature homeowners) have come onto the market in the last 12 months compared to the previous few years.
There has been a drop of 22.9% of properties priced up to £200,000 on the market in the UK in the last 12 months, yet an increase of 13.3% of properties priced between £500k and £1m.
Focusing on the lower price range nationally, there are 39.4% fewer properties for sale in the price range up to £100k, 27% fewer in the £100k to £150k range and 14.9% fewer in the £150k to £200k range. The range that has seen the highest growth is the £600k to £750k, which has grown by 14.2%.
Looking closer to home in Milton Keynes …there are 25% more properties for sale in the Milton Keynes area today, compared to a year ago. (1,197 properties for sale now compared to 957 a year ago).
But it gets much more interesting when you split the increases by bedrooms and property type.
Properties with more bedrooms tend to be more expensive than those with fewer. Also, detached and semi-detached properties are more expensive than terraced/townhouses and apartments.
4-bed Milton Keynes properties – an increase of 37%
3-bed Milton Keynes properties – an increase of 76%
2-bed Milton Keynes properties – an increase of 18%
1-bed Milton Keynes properties – a decrease of 6%
And now, by type …
Milton Keynes detached properties – an increase of 26%
Milton Keynes semi-detached properties – an increase of 82%
Milton Keynes terraced/town house properties – an increase of 46%
Milton Keynes apartments – a decrease of 3%
The increase in these larger Milton Keynes homes is great news for second or third-time movers, as it releases larger homes for them to bring up their young families.
Yet, the other side is the lack of properties for these mature Milton Keynes homeowners to buy.
There are 12.7 million people aged 65 and over in the UK (19% of the total population), yet there are only 2 million bungalows (which represent 7.2% of all UK property).
When it comes to new properties, the figures are even worse.
Of the 173,660 properties built in 2019, only 2,384 were bungalows.
And this is where the annexe could be one part of the solution.
Annexes are buildings often erected in gardens or extended onto an existing property to be used as separate and independent living accommodation.
Generally, the ‘granny annexe` has been used to keep one`s parents and grandparents nearby whilst retaining their independence. Roll the clock back to the Millennium; annexes were seen as excess accommodation that added little to the saleability or value of property.
Interestingly though, in the last few years, the annexe has had a renaissance and has become a practical, economical and emotional answer for a more flexible group of homeowners.
Lockdown brought working from home to the fore, and the annexe is undoubtedly an excellent solution for many homeowners.
Lockdown saw many people recognise the importance of having their family close by. I have seen several mature Milton Keynes homeowners build an annexe extension in the garden, then move into the annexe themselves and give their original property to their children to live in. Thus helping two families with their accommodation needs and the advantage of shared fuel costs (plus other benefits such as childcare).
Also, as mortgage rates are rising, the annexe could be the salvation for either your first-time buyer child/grandchild who cannot afford to buy their first home because of mortgage affordability rules or who is finding it tough to save a deposit for a mortgage.
The demand is there for annexes. In December 2020, Rightmove reported a year-on-year 89% increase in the number of home buyers and tenants searching for the term ‘annexe`. Demand is high and supply, as seen by these statistics, is low.
Of the 1,197 properties for sale in the Milton Keynes area, only 23 have an annexe.
We believe the lockdown made many of us look at how we live in the UK. Many people are adopting, adapting and changing how they look at housing. With recent planning regulation changes, the rules were relaxed a few years ago, which allowed homeowners to extend their homes without planning permission in an arrangement called `Permitted Development`.
If you are a mature/older Milton Keynes homeowner or have mature/older parents and want to look at all your options regarding upsizing, downsizing and annexes then, without any obligation, drop us a message and let`s chat through your options.
For everyone else in Milton Keynes, what do you think about annexes? And what other solutions could help solve the housing issue in Milton Keynes and the UK as a whole?

𝘽𝙊𝙄𝙇𝙀𝙍 𝙋𝙍𝙊𝘽𝙇𝙀𝙈𝙎 𝙏𝙊 𝙇𝙊𝙊𝙆 𝙊𝙐𝙏 𝙁𝙊𝙍

Fri, 28 Oct 2022 12:00:00 GMT
𝘽𝙊𝙄𝙇𝙀𝙍 𝙋𝙍𝙊𝘽𝙇𝙀𝙈𝙎 𝙏𝙊 𝙇𝙊𝙊𝙆 𝙊𝙐𝙏 𝙁𝙊𝙍

Being a landlord, you will most likely face an issue with your tenant`s heating not working, especially around this time of year. Here are a few common issues that could be useful if you manage your property. If you`re finding the time to deal with issues a problem, the answer could be to hand the keys over to a trusted letting agent who can take the stress out and free up your time. If you`d like our help, call us on 01908 694694.

Low boiler pressure - the pressure should be between 1 - 2 on the pressure gauge, anything below 1 is low pressure and can mean the boiler won`t fire up.

Kettling - if your boiler sounds like a kettle when it heats up, this could mean there is a build-up of grime or limescale inside the boiler`s heat exchanger. This means the boiler will not run efficiently and will waste money and energy.

Gas leak - corrosion, wear and tear and damage during installation can be a common cause of a gas leak. This can be extremely dangerous and very important to look out for as we are using our boilers more regularly.

Carbon Monoxide leak - this is another dangerous element to look out for, carbon monoxide in the home can lead to serious long-term health problems and can even be fatal.

Water leak - with the boiler being full of water up to 70 degrees, this can be very dangerous if it begins to leak. Even if the water is cold, this could result in a slip hazard.

Electricity - it`s important that the electrics are checked during a boiler service as a potential spark could ignite the gas and have very serious consequences.

𝐵𝒪𝒪!

Mon, 31 Oct 2022 12:00:00 GMT
From all of us at MK Property, we`d like to wish you a Happy Halloween!

𝙋𝙍𝙀𝙋𝘼𝙍𝙄𝙉𝙂 𝙔𝙊𝙐𝙍 𝙍𝙀𝙉𝙏𝘼𝙇 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙁𝙊𝙍 𝙒𝙄𝙉𝙏𝙀𝙍

Tue, 01 Nov 2022 12:00:00 GMT
𝙋𝙍𝙀𝙋𝘼𝙍𝙄𝙉𝙂 𝙔𝙊𝙐𝙍 𝙍𝙀𝙉𝙏𝘼𝙇 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙁𝙊𝙍 𝙒𝙄𝙉𝙏𝙀𝙍
With the end of the year fast approaching and many properties potentially being empty during Christmas, it`s essential to ensure that your property is prepared for the winter weather.
Unfortunately, winter is often the season where properties seem to develop faults. Whether it`s broken boilers or leaking guttering, we see a peak in calls to arrange emergency repairs this season.
If you`re finding the time to deal with issues a problem, the answer could be to hand the keys over to a trusted letting agent who can take the stress out and free up your time. If you`d like our help, call us on 01908 694694. Below are 5 ways to prepare your property for winter.
𝙇𝘼𝙂 𝙏𝙃𝙀 𝙋𝙄𝙋𝙀𝙎
Water pipes are a hidden threat in winter. They can easily freeze, which could cause them to crack so that when the thaw comes, they will burst, requiring costly repairs.
Even if they don`t freeze, they represent a serious source of heat loss because they will cool down more severely along with the water inside them.
This means more power will be needed to maintain adequate water temperature. The relatively simple procedure of lagging or insulating them will save energy and avoid the nightmare of burst pipes, which is expensive for the landlord and profoundly inconvenient for the tenant.
Also remember to check the pipework regularly especially during void periods or when tenants are away for an extended period.
𝘾𝙃𝙀𝘾𝙆 𝙏𝙃𝙀 𝙍𝙊𝙊𝙁
Roofs suffer inordinate punishment from the elements and if they already have weaknesses, the winter weather can exacerbate these. You should check for loose, broken or missing roof tiles because replacing a few is quick and cheap.
If the weather gets to work on damaged areas, then much more extensive repairs will be needed later on.
From the tenant`s point of view, holes in the roof can let the rain in and allow precious heat to escape, resulting in higher energy bills as well as the inconvenience of leaks. Once water gets in anywhere, it tends to wreak havoc.
Landlords should instruct their inventory clerks to make regular checks as part of every interim report, as well as at check-in and check-out.
In most cases, flaws in the roof can be detected simply by shining a torch around the loft space. Once discovered, they can be put in the hands of an experienced trades person or roofer to be fixed.
𝙄𝙉𝙎𝙐𝙇𝘼𝙏𝙀 𝙏𝙃𝙀 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔
All new builds are required by law to incorporate insulation to the very highest standards, as part of government efforts to reduce energy consumption.
Older properties can be retrofitted and the upfront cost of this is offset in the longer term. It will not only make life more comfortable for tenants and reduce energy bills, but it also helps landlords to meet their obligations under the government`s Minimum Energy Efficiency Standards (MEES).
If the windows are not yet double-glazed this should be attended to urgently, since heat loss through glass is substantial and helps keep the heat int during the winter months.
𝙎𝙀𝙍𝙑𝙄𝘾𝙀 𝙏𝙃𝙀 𝘽𝙊𝙄𝙇𝙀𝙍
Boilers should be serviced at least once a year, but if the annual visit is in the spring, then it`s wise to check it as winter approaches.
This is another job which you can ask an inventory clerk to carry out. Clearly, they are not qualified engineers, but they can verify that the boiler is working and alert you to any concerns.
Replacement is expensive but gambling on it to survive the winter is a mistake.
If it`s inefficient, you could be compelled under the MEES to replace it anyway so it`s better to take the initiative. It also means your tenants are guaranteed a reliable source of heating and hot water.
While you`re at it, you can maximise the efficiency of the heating system by bleeding the radiators so that the hot water always fills them to the top.
Contact our partner Safe2 to find a Gas Safe registered engineer.
𝙀𝙈𝙋𝙏𝙔 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙄𝙀𝙎
These are the most vulnerable of all. Winter weather doesn`t distinguish but with no tenant in situ, it`s easy for serious problems to develop.
Even keeping the heating on at a low level can create condensation which, if the property is not sufficiently ventilated, can cause damp and mould to develop. This can severely damage plaster, timber and even brickwork.
Regular checks are invaluable and may be part of your buildings insurance so its always advisable to check you have the right cover.
If these measures sound like a lot of work, bear in mind how much greater the work and higher the costs you could face by not paying enough attention. Your tenants will experience a much more comfortable winter and you will be maintaining the value of your asset.
Preparing for Winter: Key takeaways
To avoid unnecessary damage and limit complaints from tenants; landlords should:
✅Ensure boilers are regularly serviced by a Gas Safe engineer
✅Plan your maintenance schedule to ensure small issues don`t become bigger, more costly problems during winter
✅Schedule regular visits to the property to check that tenants are ventilating the property and check on signs of damp or mould
✅Regularly inspect void properties for signs of leaks or damage
✅Check your insurance for appropriate cover especially if the property is void or when tenants are away for an extended period.

Google Review

Tue, 08 Nov 2022 12:00:00 GMT
⭐️⭐️⭐️⭐️⭐️ Thank you so much Nisha for your FIVE STAR Google review. It`s greatly appreciated by the team here at MK Property ⭐️⭐️⭐️⭐️⭐️

"𝘎𝘳𝘦𝘢𝘵 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘢𝘯𝘥 𝘩𝘦𝘭𝘱 𝘪𝘯 𝘧𝘪𝘯𝘥𝘪𝘯𝘨 𝘮𝘺 𝘳𝘦𝘯𝘵𝘢𝘭 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺. 𝘏𝘢𝘥 𝘢 𝘥𝘪𝘧𝘧𝘪𝘤𝘶𝘭𝘵 𝘴𝘪𝘵𝘶𝘢𝘵𝘪𝘰𝘯 𝘸𝘪𝘵𝘩 𝘳𝘦𝘨𝘢𝘳𝘥𝘴 𝘵𝘰 𝘳𝘦𝘧𝘦𝘳𝘦𝘯𝘤𝘪𝘯𝘨 𝘢𝘯𝘥 Ceri Crowsley Ward 𝘸𝘢𝘴 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘣𝘳𝘪𝘭𝘭𝘪𝘢𝘯𝘵 𝘢𝘯𝘥 𝘷𝘦𝘳𝘺 𝘱𝘢𝘵𝘪𝘦𝘯𝘵 𝘪𝘯 𝘩𝘦𝘭𝘱𝘪𝘯𝘨 𝘮𝘦 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘮𝘰𝘷𝘦. 𝘛𝘩𝘢𝘯𝘬 𝘺𝘰𝘶"

What Will Rishi Sunak as PM Mean for Milton Keynes House Prices?

Wed, 09 Nov 2022 12:00:00 GMT
We often get asked what is going to happen to Milton Keynes house prices.
Many things affect house prices, and it comes down to simple supply and demand.
On the supply side of the equation, in the short-term, the number of people wanting to sell their property at any one time has a massive effect on house prices.
In 2007, the number of properties that came onto the market in Milton Keynes jumped drastically. In January 2007, 2,384 properties were available for sale in Milton Keynes and by October in the same year, that had risen to 3,685 properties.
This flooded the Milton Keynes market with houses to buy whilst, at the same time, the banks almost stopped lending money because of the Credit Crunch, thus causing the house price crash of 2008.
Also, on the supply side of the equation is the total number of houses in the whole country (irrespective of whether they are on the market or not). This is an essential factor in house prices, although that has a longer-term effect. Governments can control the number of properties being built with changes in planning regulations, incentives for builders and the buyer schemes such as the Help to Buy plan.
On the demand side of the equation, property values typically rise if homeowners believe they will be wealthier in the future.
Typically, that occurs when the whole country`s economy is performing well as more Brits are in work and salaries are higher. The opposite is also the case when the economy goes into recession; people tighten their spending, lose their jobs, and thus, house prices drop. Inflation will affect British household budgets (because if more of the household budget is going on increased bills, there is less available for mortgage payments).
Another factor on the demand side for housing is when the population increases (through people living longer or increasing net migration) or when the divorce rate increases (making one family household into two single-person households). As always, rising demand typically means higher house prices.
One aspect of the demand side of housing that the Government can control is the taxation of moving home. In the late spring of 2020, the Government vastly reduced the tax (Stamp Duty) paid to buy a house, saving many home buyers thousands of pounds.
Also, on the demand side, property values usually increase if more homebuyers can borrow more money with a mortgage to buy their home.
The more banks and building societies can offer mortgages, the more homebuyers can buy their future home, thus raising house prices.
However, the constraint is the amount a home buyer can borrow on a mortgage.
What someone can borrow depends on what they earn and if they can afford the monthly mortgage payments. The level of mortgage payments is dependent on three things.
1. How much you borrow
2. The interest rate charged
3. The length of the mortgage
The lower the interest rates are, the lower the cost of borrowing to pay for your house is and thus more people can afford to borrow money with a mortgage to buy a home, meaning house prices tend to go up.
Milton Keynes house prices have risen by 101.85% between 2010 and today, mainly fuelled by low interest rates.
So, looking at everything above, apart from Stamp Duty and the incentives for buyers (which historically have made a minimal difference), the Government in the short-term, irrespective of who the Prime Minister is, makes little difference directly to house prices.
The most significant short-term factor which directly affects house prices is interest rates.
However, the Bank of England (not the Government) sets the interest rate for the UK economy. That means the Government (and Rishi as PM) cannot directly make any differences in house prices (apart from the points raised above).
Yet, indirectly, as seen with the Liz Truss / Kwasi Kwarteng Mini-Budget catastrophe only a few weeks ago, what the Prime Minister (and their Government) does can make a massive difference to interest rates and, thus, the property market and house prices.
Since December 2021, the Bank of England has been slowly raising interest rates to combat inflation. Unfortunately, the downside is that it increases the mortgage rates homebuyers must pay if they are on a variable-rate mortgage or coming off a fixed-rate deal secured a few years ago.
As 17 out of 20 homebuyers have a fixed-rate mortgage, when a bank or building society calculates a 5-year or 10-year fixed-rate deal, they consider what the Bank of England interest rate is today, but they also consider something equally important, something called the `swap rate`.
As Milton Keynes homeowners and landlords, it is vital you should be aware of the swap rates as they are based on what the global money markets think future UK interest rates will be.
If the swap rate rises, then mortgage lenders will increase their rates on the mortgages they offer, and by doing so, (as discussed previously in this article), increased mortgage rates will affect affordability and, thus, house prices.
So, what affects UK swap rates? Mainly one thing, the price of government debt in the form of gilt yields.
Given the vast increase of planned government debt originally announced in that mini-budget by Truss/Kwarteng, the money markets who would be lending the Government the billions of pounds to fund those tax cuts got worried the Government wouldn`t be able to pay back such a rise in borrowing, so wanted a higher rate of return on the money they were lending the Government.
That return is measured in the `gilt yield rate`, and the gilt yield rate directly drives the `swap rate.`
That rise in the gilt yield rate/swap rate was the main reason mortgage rates rocketed after the mini-budget and helped in the collapse of Liz Truss`s Prime Ministership.
So, what can Milton Keynes homeowners expect in the coming weeks and months with gilt/swap rates?
Rishi Sunak`s first job was to re-establish confidence in the money markets for UK plc. During the summer, the 5-year gilt rate rose steadily from 1.6% to 3.5%, in line with the general rise in Bank of England base rates. Yet when the mini-budget was delivered on the 23rd of September 2022, that rose almost straight away to 4.6%.
That meant every mortgage rate jumped in price by 1 to 1.5% almost overnight.
At the time of writing, the 5-year British gilt yield has dropped to 3.5%, and the others have either dropped below their pre-mini-budget rate or were moving in that direction, depending on the gilt type.
The gilt rate (which directly affects the swap rate, which in turn, directly affects mortgage interest rates) could drop further, subject to what Rishi Sunak and his Chancellor Jeremy Hunt have planned in the budget (and supplementary report from the Office for Budget Responsibility) on the 17th of November 2022.
A drop in the gilt/swap rate is vital for any Milton Keynes homebuyer buying a house or Milton Keynes homeowner re-mortgaging to a new mortgage deal. Why? Because...with the average Milton Keynes home worth £338,439 (a rise of 6.05% over the past year), each 1% extra in the mortgage rate would cost every Milton Keynes homeowner an additional £282.03 per month.
So, what does this all mean for Milton Keynes house prices, then?
Greater certainty will keep the volume of housing transactions ticking over, yet not inescapably Milton Keynes house prices.
In our blog articles on the Milton Keynes property market, we believe Milton Keynes house prices will be lower in 12 months, and we expect Milton Keynes prices to return to where they were in the late spring/early summer of 2021.
And why is that? Unlike the 2008 Credit Crunch house price crash, today, the country has very low levels of unemployment and very well-capitalised banks (because the Bank of England subsequently forced them to keep lots of cash in their banks to cover downturns). Therefore, we don`t anticipate the kind of double-digit house price decreases seen 14 years ago.
If you would like to pick our brains about the Milton Keynes property market, be you a potential Milton Keynes first-time buyer, a Milton Keynes homeowner looking at your options on re-mortgaging or selling, or, in fact, anyone with questions, don`t hesitate to drop us a line. We will gladly share our thoughts and opinions without cost or obligation.

Tips to help you save on your energy bills

Thu, 10 Nov 2022 12:00:00 GMT
𝙀𝙑𝙀𝙍𝙔 𝙇𝙄𝙏𝙏𝙇𝙀 𝙃𝙀𝙇𝙋𝙎

Whether you`re a homeowner, a private or social renter, a student, or you live with your parents, there are many things you can do.

Click the link for quick tips and see how you could save up to £564 a year* on your bills. https://energysavingtrust.org.uk/.../quick-tips-to-save.../

REMEMBRANCE DAY

Fri, 11 Nov 2022 12:00:00 GMT
-

GOOGLE REVIEW

Tue, 15 Nov 2022 12:00:00 GMT
⭐️⭐️⭐️⭐️⭐️ Thank you so much Sunny for your FIVE STAR Google review. It`s greatly appreciated by the team here at MK Property ⭐️⭐️⭐️⭐️⭐️

"𝘈𝘴 𝘢𝘭𝘸𝘢𝘺𝘴 𝘧𝘶𝘭𝘭𝘺 𝘪𝘯𝘧𝘰𝘳𝘮𝘦𝘥 𝘮𝘦 𝘵𝘩𝘳𝘰𝘶𝘨𝘩𝘰𝘶𝘵 𝘵𝘩𝘦 𝘱𝘳𝘰𝘤𝘦𝘴𝘴 𝘰𝘧 𝘧𝘪𝘯𝘥𝘪𝘯𝘨 𝘢 𝘵𝘦𝘯𝘢𝘯𝘵 𝘢𝘯𝘥 𝘸𝘩𝘦𝘯 𝘴𝘶𝘤𝘤𝘦𝘴𝘴𝘧𝘶𝘭𝘭𝘺 𝘤𝘩𝘦𝘤𝘬𝘪𝘯𝘨 𝘪𝘯.

𝘝𝘦𝘳𝘺 𝘴𝘦𝘢𝘮𝘭𝘦𝘴𝘴 𝘢𝘯𝘥 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭."

Is Now a Good Time to Buy a Milton Keynes Home?

Wed, 16 Nov 2022 12:00:00 GMT
This is the question many people are asking right now, and the answer depends on your circumstances.
We pride ourselves on our ability to provide objective, fact-based information on the Milton Keynes property market so potential Milton Keynes house sellers, landlords and buyers can make the best decision for themselves.
Our role is to educate the potential Milton Keynes house sellers, landlords and buyers and to provide them with the best possible information available, not to convince them to do something they don`t want to do.
To answer that big question in the title of the article (is now a good time to buy a Milton Keynes home?), it comes down to three things.
1. How much will you get for your Milton Keynes home when you sell it?
2. How much will you have to pay for your new home?
3. How much will that move cost you in ongoing monthly mortgage payments?
To answer points 1 and 2 correctly, we need to address point 3, which relates to interest rates.
The click-bait newspapers and websites are pushing messages to potential sellers and buyers towards the top end of the sensationalised scale. We prefer to define what is happening, i.e. the reality.
On the face of it, it doesn`t look good.
The average 5-year fixed rate mortgage has risen from 2.11% at the beginning of January this year to 6.21% in early November.
Yet even though the Bank of England increased the base rate by 0.75% on the 3rd of November, the average 5-year fixed rate mortgage dropped by 0.22% between the 3rd week in October and bonfire night. As interest rates go up, mortgage rates are coming down even though interest rates are projected to increase to 4.5% by the autumn of 2023.
No alt text provided for this image
So, why did the Bank of England mention in the first week of November that the UK is facing a two-year recession? Some might think this controversial, yet the Bank of England wants a recession as it will aid in reducing inflation. It`s as plain and simple as that!
Instead of relying purely on interest rates to reduce inflation, the Bank of England is hoping if we go into some form of shallow recession, it will not need to increase interest rates much above the anticipated 4.5%.
However, whether it`s interest rates or a recession, both will slow the number of home sales in Milton Keynes and will indirectly affect Milton Keynes house prices.
So will Milton Keynes house prices drop? By how much and what money will it save you if you wait?
We have spoken recently in our property blogs about the Milton Keynes property market, and the prices that will be achieved for homes in late 2023/early 2024 will be between 5% to 10% lower than what is being achieved today. There is no point in repeating why (message us if you want those articles), but in essence, increasing mortgage rates, inflation and affordability will mean the price people can pay for a Milton Keynes home will be curtailed because of those factors. Let`s assume a reduction of 10% in Milton Keynes house prices.
Around 81 in 100 existing homeowners are buyers. When they sell their home, they almost always move upmarket regarding accommodation and location. Hence, they will pay more for the home they buy than the property they sell.
So, if you are in Milton Keynes and live in a 2-bed house (average value £269,954) and want to buy a 3-bed house (average value £362,511), the difference between both would be £92,557.
If Milton Keynes house prices dropped by 10% in a couple of years, that £269,954 2-bed house would drop to £242,959, and that £362,511 3-bed house would drop to £326,260, meaning the gap would drop to £83,301. Thus, saving the home buyer £9,256.
So, should they wait?
Yes, until you look at the monthly ongoing mortgage payments.
Assuming our Milton Keynes homeowner has an existing mortgage of £150,000 and added the difference of moving up the property ladder to the mortgage. If our Milton Keynes home mover moved now, their mortgage payments would be £1,277.25 per month (assuming a 35-year mortgage on a 5-year fixed rate at 5.34% with First Direct).
The other scenario would be if our Milton Keynes buyer waited a couple of years for Milton Keynes house prices to drop 10% (to save the £9,256 mentioned above) to make a move.
Everyone acknowledges interest rates will rise in the next two years, so the monthly mortgage payments when they move (even though they are borrowing less) would be £1,521.65 per month (based on a 5-year fixed mortgage being 7.19% in 2 years).
By waiting 2 years, it will cost the Milton Keynes homeowner £244.40 extra per month in interest payments or £14,664.11 in the 5-year mortgage term.
The point is that because interest rates are forecast to go higher in the next couple of years, this provides potential Milton Keynes buyers with the prospect of locking in their monthly housing expenses by moving now.
By buying now, it hedges against rising interest rates; consequently, your monthly mortgage payments are going to be higher. It offers an opportunity, through re-mortgaging, to lower your mortgage costs should interest rates fall.
What about Milton Keynes first-time buyers?
We wrote an article on the Milton Keynes property market only a few weeks ago. Even when we looked at house prices dropping by 18% in two years (because in the 1988 house price crash, the market dropped by 20% and 17% by 2008), the savings made on the purchase price were blown out of the water with the two extra years of rental payments, the higher deposit and higher interest payments.
The actual crisis in the property market today is the rocketing rental rates.
Whilst a fixed-rate mortgage locks in your monthly housing costs, rental rates are rocketing upwards, and a tenant today can realistically expect higher monthly costs in the coming few years.
Though most of the press generally focuses on the monetary aspects of buying a home, there are also choices on homeownership that are not exclusively based on financial decisions.
Why are you considering buying a Milton Keynes home?
Buying a Milton Keynes home is very personal and predominantly driven by your life events like divorce/marriage, a job move, a new addition to the family, elderly parents moving in etc. These are often the influences that drive the decision to buy (or not buy) a home.
Homeownership has always been a foundation stone of the British dream.
Homeownership offers control and a sense of security that renting simply cannot provide.
The doom-monger headline-grabbing newspapers often overlook these non-economic factors affecting the desire of a potential home buyer.
The one important thing from the last few years since the first lockdown in 2020 is that people still want to own their own homes.
They still want to have their ‘castle`, to pull up the drawbridge when things get tough, a place that they and their family can call their own. Never forget that homeownership is much more than house prices and graphs; it`s about the ‘Englishman`s home is his castle` dream.
Let us remember most people in the UK have been able to build and grow their family wealth through homeownership. That is why we like to provide the best information on the Milton Keynes property market so you can make the best decision for yourself and your family. Please drop us a line if you wish to pick our brain`s on anything discussed in this article.

Houseplants That Help Remove Mould & Mildew

Thu, 17 Nov 2022 12:00:00 GMT
Houseplants are a great way to brighten up even the gloomiest rooms, but as well as being decorative, common indoor plants can help oust mould and mildew. Rooms with plants have 40 to 60 per cent fewer mould spores and bacteria. Bathrooms, kitchens and rooms that suffer from humidity, damp, mildew or mould could benefit from houseplants.
Adelida, our Inspection Manager for MK Property, said, `It came to my attention that most properties I inspect have a mould issue. I advise tenants on how to avoid getting mould.
The most common advice I suggest is:
1. Use anti mould spray to clean affected areas
2. Paint it over using anti mould paint
3. Keep room temperature to a minimum of 18 degrees
4. Air Property daily
5. Open curtains daily
One day I inspected two flats in the same building, both on the ground floor. One flat was full of mould and even started to get mouldy wooden door frames. The Other flat, nothing. I looked around, and every room had plants, minimum of two plants per room. So, I googled it and found this handy article: https://www.express.co.uk/.../houseplants-uk-indoor.../amp.
So, I`m now advising tenants to get plants to avoid mould. Also, the flat with plants was much warmer and fresher. If you`re not that green-fingered, the list of easy-to-care-for plants that are low maintenance could end up helping you have a happy and healthy home.`
If you`re a landlord, why not share this with your tenant? If you`d like more information and other tips on looking after your investment, contact Adelida at 01908 694694 or email adelida@mkproperty.org.

Milton Keynes LANDLORDS, HOMEOWNERS & THE AUTUMN BUDGET 2022

Fri, 18 Nov 2022 12:00:00 GMT
The Chancellor, Jeremy Hunt, gave his Autumn Budget 2022 yesterday, intending to deal with inflation and keep mortgage rates down for homeowners.
In this post, we wanted to touch on what this would mean specifically for Milton Keynes landlords and homeowners thinking of buying and selling.
Capital Gains Tax Changes
In previous articles about the Milton Keynes property market, we touched on the muted plans from 2020 to increase the Capital Gains Tax (CGT) headline rate.
Instead, in the Budget, the CGT relief allowance has been cut from £12,300 to £6,000 for the next tax year (2023/4) and then cut again to £3,000 for 2024/5.
Therefore, if you are a basic rate taxpayer, you will end up paying £1,134 extra in CGT after April 2023 (and £1,764 if a higher rate taxpayer) and a further extra 50% on top of those figures in tax year 2024/5.
Only second homeowners and landlords pay Capital Gains Tax on the difference between the price you paid for the property and the price you sold it for. (Note- it is not paid on any gain of your principal residence)
This will be unwished-for news for Milton Keynes landlords and second-home owners.
Even if you have no intentions of selling your portfolio in the next five to ten years, there are things you could be doing now to reduce your CGT liability in the future. However, there are various reliefs Milton Keynes landlords can apply to HMRC for that will reduce the CGT liability. If you would like some names of good local Milton Keynes accountants, drop us a line, and we can suggest some for you.
Is it worth selling your Milton Keynes rental property now? Well, the average conveyancing time for UK property from sale agreed to exchange of contracts is 19 weeks, which takes us to 30th March 2022…all to save £1,764 …all at a time when rents have rocketed by 19% in the last two years.
Stamp Duty Cut To Stay - Until 2025
Kwasi Kwarteng`s cut to stamp duty in England announced in his September Budget will remain until 31st March 2025.
Jeremy Hunt stated because housing activity will be slower in 2023/4, the stamp duty cuts announced in Kwarteng`s mini-budget will remain in place for the next two years and four months.
This means that the price of a property before stamp duty is paid will stay at £250,000, up from the previous level of £125,000 until March 2025, then drop down to the old rates.
This will be good news for Milton Keynes home buyers and landlords in the coming years.
No alt text provided for this image
This graph shows the number of weekly house sales in the U.K. (yellow line) dropping - if this was in a newspaper it would be doom and gloom. Yet with all things like this, the devil is in the detail. 2020 and 2021 were exceptional years for the U.K. property market. In Q4 2020, an average of 23,071 properties sold per week in the UK. In Q4 2021, an average of 21,051 properties sold per week in the UK.
So with the average at 19,694 per week Quarter to date .. surely we should run for the hills?Until you look at the averages for 2019. In Q4 2019, 16,263 properties sold per week sold. In Q4 2018, 15,922 properties sold per week sold. In Q4 2017, 15,721 properties sold per week sold. In Q4 2016, 15,811 properties sold per week. We are just going back to the ways things were before lockdown.
If you are a homeowner or landlord, don`t believe what the newspapers are putting out and look at what is really happening Don`t get us wrong, house prices will be lower next year. Its going to hard work in 2023 .. but its not Armageddon like the papers say.

KEYS - What To Do When They Break In The Lock!

Tue, 22 Nov 2022 12:00:00 GMT
Most of us probably think of major issues such as broken boilers and appliances or leaking roofs, but even the smallest things can cause difficulties. Something as seemingly innocuous as locks and keys can create practical problems as well as uncertainty over responsibility and liability. So what do you do when keys break in the lock?
What do you do when keys break in the lock?
First of all don`t panic! Assess the situation.
Whether you are the tenant, clerk or indeed the landlord a cool head is definitely called for.
As the tenant – if the key is broken and still in the lock – call the landlord and explain the situation. Many seasoned landlords may be able to sort this themselves as many will replace locks at check out so ask first before you call a locksmith as this could save you £`s.
As the landlord – if you are not able to retrieve the key or have spares – call a qualified locksmith.
Read the full article here - https://inventorybase.co.uk/.../keys-what-to-do-when.../

MK Business Showcase

Wed, 23 Nov 2022 12:00:00 GMT
We`re excited to announce that we will be exhibiting at the Milton Keynes Chamber of Commerce Business Showcase on Thursday 24th November!

Come along to Kents Hill Park Training and Conference Centre from 10am to see all the local businesses exhibiting. It`s completely free to attend.

Register your place here: https://chambermk.co.uk/.../visitor-registration-mk...

Milton Keynes tenants face further rent hikes, as the number of available rental homes drops by 52%

Wed, 23 Nov 2022 12:00:00 GMT
The number of properties available to rent in Milton Keynes has dropped from 1,320 to 633 since February 2020.
The average rent a tenant has had to pay in Milton Keynes has risen from £1,019 to £1,402 since February 2020.
Many Milton Keynes landlords have cashed in on the post-lockdown property boom of the last two years and sold their properties to owner-occupiers - not fellow landlords.
The supply of Milton Keynes rental property isn`t near what is needed, which is of benefit to Milton Keynes landlords rather than renters.
The Milton Keynes rental property shortage is currently very evident. In this article, we will investigate why there is such a significant lack of homes available for rent across Milton Keynes and what it means for buy-to-let investors.
Anybody who enjoys surfing the property portals (Rightmove, Zoopla and On the Market) will have observed an emerging trend that the number of properties available to rent in Milton Keynes has dropped considerably in the last couple of years.
This reduction has been seen all around the UK as well. For example, on 1st November 2020, there were 372,931 properties to rent on portals. By the 1st November 2021, that had dropped to 275,650; by the 1st November 2022, that had fallen to 171,224.
That doesn`t mean the number of privately rented homes in the country has dropped by over half. Fewer properties are coming onto the market to rent. We will explain why in this article.
For tenants, especially over the last 12 months, it has become progressively more challenging to find a Milton Keynes rental home, thus making the rent they must pay go up. This state of affairs in the property market isn`t showing an indication of getting any easier either, making for a hard time for Milton Keynes renters.
So, what is the reason behind the Milton Keynes rental property shortage, and what does this mean for existing landlords or those potential investors considering buying a Milton Keynes buy-to-let property soon?
Several different components are making the perfect storm in the UK property market.
Firstly, the number of households in the UK.
The UK has not been building enough homes for the last 20 years. We appreciate that parts of Milton Keynes seem like one huge building site, yet as a country, we are woefully undersupplied with property to live in. This has meant house prices continue to rise due to demand.
The government have known about this issue for decades. The Barker Review of Housing Supply published in 2004 stated that the UK had experienced a long-term upward trend of 2.4% in real house prices since the mid-1970s because of a lack of house building. The report stated that 240,000 houses needed to be built each year to keep up with demand.
The average number of houses built since the mid-1970s has been around 165,000 per year, meaning the UK is short of 3,375,000 houses (i.e. 45 years multiplied by 75,000 missing homes per year).
Several years ago, the government set a target to build 300,000 new homes each year to address this issue.
However, in 2019/20, the actual number of homes delivered stood at just 243,770. In 2020/21, the number of properties built dropped to only 216,000 new homes. In a nutshell, there are fewer available homes to buy, meaning fewer available homes to rent.
Secondly, Milton Keynes tenants are staying in their rental homes longer.
A Milton Keynes first-time buyer`s average house deposit is £60,953 (the UK average deposit is £53,935).
The average rent of a Milton Keynes property in November 2022 is £1,402 per calendar month (up from £1,019 per calendar month in February 2020) – quite a rise!
These numbers translate into Milton Keynes renters not being able to pay the rent and be able to save for a deposit, or if they are saving, it is taking a lot longer to save for a deposit due to the cost-of-living crisis and higher rent costs.
Also, many Milton Keynes tenants have decided to stay in their existing rental homes because of the rent rises. Many landlords are less inclined to raise the rent on an existing property when they have a decent tenant who keeps the property in good condition and pays rent on time. Anecdotal evidence also suggests that rent arrears in those properties are dropping as tenants know if they don`t pay the rent, the chances are they will have trouble finding another property, and if they do, they will have to pay a lot for their next rental home.
For Milton Keynes landlords, this is all positive news - tenants are staying for longer in their Milton Keynes rental properties, arrears are lower, and void periods are less likely. When it comes to the market there is less competition (because of the decrease in the availability of Milton Keynes rental properties) so this makes the investment an even better bet.
Thirdly, landlords are selling up on the back of recently increased house prices.
It would be difficult for Milton Keynes buy-to-let landlords to ignore the rising property prices in recent years.
The average property value in Milton Keynes in the summer of 2022 was 15.6% higher than in the summer of 2021.
For some Milton Keynes buy-to-let landlords, especially those who were classified as ‘accidental landlords` (an accidental landlord is a landlord who never chose to become a landlord, it was just after the Credit Crunch of 2008/9, they found themselves unable to sell their property, so they temporarily let their own property out), they chose to ‘cash in` on the higher house prices. This would have also contributed to the lack of available Milton Keynes homes for rent.
Yet everything isn`t all sweetness and light for Milton Keynes landlords.
Landlords have a few costs to consider before investing in buy-to-let, including everything from regular refurbishment costs, buildings insurance, letting agents` fees, income tax, and, not forgetting, stamp duty.
Talking of costs, one issue some Milton Keynes landlords are facing is their failure to plan financially for the recent mortgage interest rate rises. Some Milton Keynes landlords may have become complacent to the ultra-low Bank of England base rates we have had since 2008 and, therefore, may need to sell their rental property, which, if bought by a first-time buyer, will remove another property from the Private Rented Sector.
Another hurdle to jump is the proposed new regulations requiring better energy efficiency for rental properties. It is proposed all new tenancies must have at least a minimum of a `C` rating for their EPC (Energy Performance Certificate) from 2025 (and 2028 for all existing tenancies).
Therefore, as a buy-to-let Milton Keynes landlord, it is wise to do your research to make sure the buy-to-let opportunity is correct for your rental portfolio, particularly when it comes to weathering any impending financial storms.
Landlords need to consider the returns from their Milton Keynes buy-to-let investments.
Landlords can earn money from their buy-to-let investments in two ways. One is the property`s capital growth, and the other is the rental return (often expressed as a yield). In 96% of buy-to-let investments, there is an inverse relationship between capital growth and yield (i.e. properties that tend to go up in value quicker will have lower yields 96% of the time – and vice versa).
Getting the best balance of yield and capital growth depends on your current and future needs from your Milton Keynes buy-to-let investment.
If you would like us to review your portfolio and ascertain if your existing portfolio will match your current and future needs for the investment - whether you are our client or not, feel free to drop us a line, and we can have a no-obligation chat and possibly organise a review.
What does all this mean for the Milton Keynes rental market?
The continued shortage of Milton Keynes rental properties means it will be more difficult than ever to find a Milton Keynes property to rent, and so rents will continue to grow.
Unlike in Scotland, England and Wales do not have rent controls, with Westminster ruling out the possibility of introducing rent control here to deal with the cost-of-living crisis.
You would think rent controls would be a no-brainer, yet economists from around the world have proved for the last 75 years that rent controls might help tenants in the short term, yet ultimately it drives landlords to sell their investments in the long term, thus reducing the stock of available properties to rent out (not great for future tenants).
Therefore, it is highly likely that Milton Keynes rents will continue to rise for tenants.
Landlords who persevere with their Milton Keynes buy-to-let properties or become a Milton Keynes buy-to-let landlord are set to benefit because they have an asset in very high demand.
The housing shortage, not to mention the other issues discussed above that are affecting the supply of rental properties, is unlikely to be fixed anytime soon!
In conclusion, the Milton Keynes rental market is a constantly changing picture. What is known is that the supply of rental properties is far from what is needed, which can only be to the benefit of buy-to-let investors rather than of tenants renting.
We see buy-to-let as a long-term investment. Everyone reading this knows that the real value in your buy-to-let investment is playing the long game, allowing your Milton Keynes buy-to-let investment to grow over time. Like the crypto or stock market, getting sucked in by get-rich-quick schemes that are selling `apparent quick wins` in property investment is very easy.
We regularly highlight the best buy-to-let deals for Milton Keynes landlords with all the estate agents (not just our own). You don`t need to be a client of ours either to receive that information. Drop us a line or call (without any cost or obligation) if you are interested in making your first Milton Keynes buy-to-let investment or considering adding to your existing Milton Keynes portfolio.

GOOGLE REVIEW

Tue, 29 Nov 2022 12:00:00 GMT
⭐️⭐️⭐️⭐️⭐️ Thank you so much, Nicola Stephens, for your FIVE STAR Google review. It`s greatly appreciated by the team here at MK Property ⭐️⭐️⭐️⭐️⭐️

"𝘈𝘯𝘰𝘵𝘩𝘦𝘳 𝘨𝘳𝘦𝘢𝘵 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘧𝘳𝘰𝘮 𝘣𝘦𝘨𝘪𝘯𝘯𝘪𝘯𝘨 𝘵𝘰 𝘦𝘯𝘥 𝘶𝘴𝘪𝘯𝘨 𝘔𝘒 𝘗𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘵𝘰 𝘧𝘪𝘯𝘥 𝘶𝘴 𝘵𝘩𝘪𝘴 𝘭𝘢𝘵𝘦𝘴𝘵 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺. 𝘛𝘩𝘢𝘯𝘬 𝘺𝘰𝘶 𝘵𝘰 𝘎𝘳𝘢𝘤𝘦 𝘢𝘯𝘥 𝘊𝘦𝘳𝘪 𝘵𝘰𝘥𝘢𝘺 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘨𝘳𝘦𝘢𝘵 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘪𝘯 𝘩𝘢𝘯𝘥𝘪𝘯𝘨 𝘰𝘷𝘦𝘳 𝘵𝘩𝘦 𝘬𝘦𝘺𝘴.
𝘈 𝘷𝘦𝘳𝘺 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘸𝘩𝘰𝘭𝘦 𝘵𝘦𝘢𝘮."

Falling Milton Keynes House Prices - The Winners & Losers

Wed, 30 Nov 2022 12:00:00 GMT
The doom and gloom of the national newspaper headlines regarding the UK property market would make you think Armageddon has arrived, this being the second most interesting topic to the Brits (the first being the weather!).
So, what is happening in the British property market? As with most things in life, the devil is in the detail.
2020 and 2021 were exceptional years for the UK Property Market.
In Q4 2020 (Q4 being October, November and December combined), an average of 23,071 properties were sold per week in the UK (sold - as in a sale was agreed and the property went from available to sold subject to contract (STC)).
In Q4 2021, an average of 21,051 properties were sold per week in the UK.
So by the end of week 3 in November 2022, with an average of 19,694 properties per week becoming sold STC, quarter to date ... the housing market doesn`t look good. Yet a different story emerges from the Q4 averages for 2016 to 2019.
In Q4 2019, an average of 16,263 properties were sold per week
In Q4 2018, an average of 15,922 properties were sold per week
In Q4 2017, an average of 15,721 properties were sold per week
In Q4 2016, an average of 15,811 properties were sold per week
No alt text provided for this image
The British property market is only returning to how things were before the first lockdown.
As we have discussed recently in several posts on the Milton Keynes property market in our blog, we do believe the price that will be achieved for Milton Keynes property in 12/16 months will be around 8% to 12% lower than what was being paid for property in the late spring (of 2022). Note we didn`t use the word ‘crash`.
Question - Why do the newspapers use the phrase `house price crash`?
Answer - To sell more newspapers!
Include the time, policy and efforts that the political parties go to in order keep British house prices on an upwards trajectory to gain votes and you might believe that a fall in house prices is a total catastrophe.
Nothing could be further from the truth for most homeowners and landlords.
Indeed, when you look at house prices without any emotion, when house prices fall — in isolation — more people win than lose.
So, who wins when house prices drop?
Let`s say you own a two-bedroom Milton Keynes home worth £250,000. You have an expanding family, and you need a third bedroom.
The three-bedroom home in Milton Keynes you want is £350,000, meaning you need to find £100,000 to trade up.
If Milton Keynes house prices rose by 10%, get the Champagne on ice as your Milton Keynes two-bedroom home is now worth £275,000. Mind you before you open the fizzy stuff — remember the three-bed you want has also risen 10%, meaning it is now £385,000. If you want to trade up, you need to find £110,000.
Milton Keynes house prices rising has cost you an additional £10,000.
On the other side of the coin, what if Milton Keynes house prices fell 10%?
Your two-bedroom home is now only worth £225,000. Catastrophe! Yet wait — the three-bedroom home you want to move up to is now worth £315,000, meaning you only need to find £90,000 to trade up.
Also, stamp duty, solicitor fees, and estate agent fees tend to be percentage based - thus saving you money.
As over 7 out of 10 home movers move up the property ladder, falling house prices are not necessarily a problem.
Falling Milton Keynes house prices are great for those who want to move up the property ladder and trade up.
So, who loses when house prices drop?
The first set of people that lose out are homeowners moving down market. The gap between selling a larger home and buying a smaller one narrows when one moves down market. Given the massive growth in house prices over the many decades those homeowners have been in the property market, it`s tough to see this as a calamity, yet it`s certainly a loss.
The second set of people that lose out are beneficiaries of the home being sold when a parent/grandparent passes away.
Let us all be honest; we believe there will be little sympathy in the broader community for those first two sets of people for their loss of money.
However, the most exposed (and many people will sympathise with these) are those first-time buyers who bought their first home with a small deposit. If you had just bought your first home for £200,000 with a 5% deposit (so you had a £190,000 mortgage) but Milton Keynes house prices dropped by 10%, you now own a home worth £180,000 (less than the mortgage). Now you are in ‘negative equity` (as your mortgage is £10,000 more than what the house is worth, i.e. £190k less £180k), which causes you two main problems.
Firstly, when your fixed rate deal ends, most of the time, it is wise to re-mortgage to another rate. However, when you have negative equity, the range of mortgage deals open to you will be minimal, so you will probably have to pay your bank/building society`s quite pricey ‘standard variable rate`.
Secondly, suppose you want to sell your Milton Keynes home. In that case, the price you achieve will not pay off the mortgage, which means you will have to find the difference elsewhere (i.e. a gift/borrowing from your family or selling an asset like a car)—in a nutshell, making a move very difficult.
How many people will be drawn into negative equity if house prices drop 10%?
Just 2.9% of homeowners will be in negative equity, if house prices drop by 10%.
Now of course, if you are one of that 2.9%, that will be challenging. Yet, the vast majority of those first-time buyers have been in their homes a year or less, and most first-time buyers only move to their second home after four to six years. Also, they will be fixed-rate mortgages (mostly five-year fixed-rate mortgages), so re-mortgaging won`t be an issue either.
But what would it mean to Milton Keynes house prices if they did drop by 10%?
If house prices drop by 10% in the next 12 months in Milton Keynes, that would only bring us back to the house prices being achieved in February 2022.
(For all you property stat fans – the average house price in Milton Keynes today is £336,018, whilst back in February 2022, it was £302,002).
Yet what if they dropped by the same percentage (19%) as they did in the Credit Crunch?
If house prices dropped by the same percentage as they fell in the Credit Crunch in Milton Keynes, that would only bring us back to the house prices being achieved in June 2021.
And nobody was complaining about those!
Let us get back to the real problem with falling house prices.
When the country`s house prices fall, that tends to correspond with more challenging economic times. Now, because of rising interest rates and inflation, the price people are paying for a Milton Keynes property is lower than one would have paid in the spring (when you were bidding against multiple offers and had to pay top dollar to secure the purchase).
However, during times of falling house prices, that can start to negatively affect the broader British economy. For some strange reason, homeowners tend to spend less because they ‘feel` less well-off because the value of their home has dropped, and fewer people move home, meaning there is less choice for people to buy. Lenders start to be meaner about lending because they are nervous about arrears and bad debts building up.
2023 will be challenging for many Milton Keynes families, yet …
As we go into recession, the share of homeowners exposed to falling house prices is smaller than in the 2008 Credit Crunch.
92.48% of new mortgages taken out in the last four years have been fixed-rate mortgages, compared to 63.08% in the years before the Credit Crunch.
In 2008, 45.4% of existing mortgages were 4% above the base rate, today, that is only 2.1%.
Going into the Credit Crunch, the average mortgage rate homeowners were on was 5.88%, whilst the average rate existing mortgaged homeowners today are on is 2.17%.
Ultimately, unemployment is the main factor of whether this goes from being a possibly benign slow 10% decline to a full-scale crash.
If homeowners keep their jobs, they will keep paying their mortgages. However, (as in the 1988 and 2008 house price crash) if people lose their jobs, mortgages don`t tend to get paid, and that is when repossessions increase and forced selling starts to take effect.
However, looking at the Autumn Statement, the Government have learned the lesson of previous generations and vastly improved the safety net of contributing to people`s mortgages. Should someone become unemployed, at the moment, homeowners must wait 39 weeks before the Government will help pay the mortgage (thus increasing their chances of repossession). This will be reduced to 12 weeks in the spring, reducing mortgage repossessions later in 2023/4.
So where does that leave us?
We should be less keen to celebrate ‘house price booms` throughout the ‘good times` because the usual ‘house price crashes` tend to worsen the ‘bad times`.
In its place, we should concentrate on what British society can do to obtain a more stable property market over time. That is a topic for another article in our property blog! (Do send us a message if you would like a link to the other articles, we written about the Milton Keynes property market).
Final thoughts: the house prices being achieved in late 2021/early 2022 in Milton Keynes will be a distant memory in a year`s time, yet for most people, that is not a bad thing. 2023 will be a challenging year, but don`t let the price paid for property by 3.54% of the UK population (the percentage of privately owned houses that will sell next year) affect your outlook and worth as a homeowner/landlord.

MK Property Sales & Lettings

2 Bedroom Flat, New Bradwell £180,000.00

4 Bedroom Semi-Detached, Bletchley £325,000.00

3 Bedroom Semi-Detached, Bradville £189,995.00

1 Bedroom End Terrace, Walnut Tree £85,000.00

3 Bedroom Detached, Walnut Tree £130,000.00

3 Bedroom Terrace, New Bradwell £275,000.00

2 Bedroom End Terrace, Oxley Park £325,000.00

2 Bedroom Apartment, Northampton £900.00

2 Bedroom Maisonette, Wolverton £165,000.00

1 Bedroom Maisonette, Wolverton £150,000.00

1 Bedroom Maisonette, Wolverton £190,000.00

5 Bedroom Detached, Wellingborough £400,000.00

2 Bedroom Terrace, Bletchley £220,000.00

3 Bedroom Terrace, Milton Keynes £230,000.00

2 Bedroom Apartment, Central Milton Keynes £270,000.00

1 Bedroom Apartment, Central Milton Keynes £170,000.00

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77.8% of Milton Keynes Properties Were Bought With a Mortgage in the Last Ten Years

MK Starter Homes are 42.9% Cheaper Today Than in 1989

𝙈𝙄𝙎𝙏𝘼𝙆𝙀𝙎 𝙏𝙊 𝘼𝙑𝙊𝙄𝘿 𝙒𝙃𝙀𝙉 𝙂𝘼𝙍𝘿𝙀𝙉𝙄𝙉𝙂 𝙄𝙉 𝙃𝙊𝙏 𝙒𝙀𝘼𝙏𝙃𝙀𝙍

Milton Keynes Property Prices Have Risen by 511% Compared To The National Average of 407.2%

𝙃𝘼𝙋𝙋𝙔 𝘽𝙄𝙍𝙏𝙃𝘿𝘼𝙔 𝙍𝙀𝘽𝙀𝘾𝘾𝘼

𝙏𝙍𝘼𝙉𝙎𝙁𝙀𝙍𝙍𝙄𝙉𝙂 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝘽𝙀𝙏𝙒𝙀𝙀𝙉 𝙋𝘼𝙍𝙏𝙉𝙀𝙍𝙎

𝙃𝘼𝙋𝙋𝙔 𝘽𝙄𝙍𝙏𝙃𝘿𝘼𝙔 𝘿𝙀𝘾𝙇𝘼𝙉

Inheritance, could this be the answer to the housing crisis?

𝙏𝙀𝙉 𝙆𝙄𝙏𝘾𝙃𝙀𝙉 𝙄𝙎𝙇𝘼𝙉𝘿 𝘿𝙀𝙎𝙄𝙂𝙉 𝙈𝙄𝙎𝙏𝘼𝙆𝙀𝙎

RENTAL YIELD V CAPITAL GAIN - LANDLORD TIPS

Will The Cost-of-Living Crisis Mark the End of the Booming Milton Keynes Property Market?

Milton Keynes`s ‘Generation Stuck` and Their £7bn Tied-up Equity

𝙃𝙊𝙒 𝙏𝙊 𝙒𝙊𝙍𝙆 𝙊𝙐𝙏 𝙍𝙀𝙉𝙏𝘼𝙇 𝙔𝙄𝙀𝙇𝘿?

𝐃𝐎 𝐈 𝐍𝐄𝐄𝐃 𝐋𝐀𝐍𝐃𝐋𝐎𝐑𝐃 𝐈𝐍𝐒𝐔𝐑𝐀𝐍𝐂𝐄?

What`s the Difference Between a Flat and an Apartment in Milton Keynes?

HM Queen Elizabeth II

Advanced Office Closure

Milton Keynes Tenants` Spiralling Energy Bills are About to Become Milton Keynes Landlords` Problem

2,959 Milton Keynes Landlords Could Be Hit With £14k Bills and Red Tape in Tory `Levelling Up` Plans