25 Days to Sell a Property in Rugby

Whether you are a Rugby landlord looking to liquidate your buy to let investment or a homeowner looking to sell your home, finding a buyer and selling your property can take an annoyingly long time. It is a step-by-step process that can take months and months. In fact, one of the worst parts of the house selling process is the not knowing how long you might be stuck at each step. At the moment, looking at every estate agent in Rugby, independent research shows it is taking on average 25 days from the property coming on the market for it to be sold subject to contract.

But trust me … that is just the start of a long journey on the house selling/buying process. The journey is a long one and therefore, in this article, I want to take you through the standard itinerary for each step of the house selling procedure in Rugby.

Step 1 – Find a Buyer

You need to instruct an estate agent (of course we can help you with that) who will talk through a marketing strategy and pricing strategy to enable you to find a buyer that fits your circumstances. 25 days might be the average in Rugby, yet as I have said many times, the Rugby property market is like a fly’s eye, split up into lots of little micro markets.

Looking at that independent research, (which only focused on Rugby), it was interesting to see how the different price bands (i.e. different micro markets) are currently performing, when it comes down to the average number of days it takes to find a buyer for a property in Rugby.

Interestingly, I thought I would see which price band had the highest proportion of properties sold (stc)… again – fascinating!

So, now you have a buyer … what next?

There are a variety of distinctive issues at play when selling your property in Rugby, together with the involvement of a wide and varied range of professionals who get involved in that process. That means there is are enormous differences in how long it takes from one property to another. Moving forward to the next steps, these are the average lengths of time it takes for each step to give you some idea of what to expect.

Step 2  – Sort Solicitors (and Mortgage)

Again, something we can point you in the right direction to, but it will take a good few weeks for your buyer to apply and sort their mortgage and for your solicitors to prepare the legal paper work to send to the buyer.

Step 3 – Legal Work and Survey

Once you buyer’s solicitor receives the paperwork from your solicitor, then your buyer’s solicitor applies for local searches from the local authority (to ensure no motorways etc., are going to be built in the back garden!).  These Searches can take a number of weeks to be returned to the buyer solicitors from the council, from which questions will be raised by the buyer’s solicitor to your solicitor (trust me – you don’t see a tenth of the work that goes on behind closed doors to get the sale through to completion). Meanwhile, the surveyor will check the property to ensure it is worth the money and structurally sound. Overall, this step can take between 3 and 6 weeks (sometimes more!).

Step 4 – Exchange of Contracts

Assuming all the mortgage, survey and legal work comes back ok, both the buyer and solicitor sign contracts, the solicitors then perform “Exchange of Contracts”. When contracts are exchanged, this is the first time both buyer and seller are tied in. Before then, they can walk away … and you are probably 4 or 5 months down the line from having put up the for sale board – this isn’t a quick process! BUT hold on … we aren’t there yet!

Step 5 – Completion

Between a week and up to six weeks after exchange of contracts, the buyer solicitor sends the purchase money to the seller’s solicitor, and once that arrives, the keys will be given to the buyer … phew!

To conclude, all in all, you are looking at a good four, five even six months from putting the for-sale board up to moving out.

If you are thinking of selling your Rugby home or if you are a Rugby landlord, hoping to sell your buy to let property (with tenants in), either way, if you want a chat to ensure you get a decent price with minimal fuss … drop me a message or pick up the phone.

Rugby Property Market – How Does It Compare Historically to the West Midlands and National Property Market’s?​

Living in our own homes or owning buy to let property in Rugby and the surrounding areas, it’s often easy to ignore the regional and national picture when it comes to property. As a homeowner or landlord in Rugby, consideration must be given to these markets, as directly and indirectly, they do have a bearing on us in Rugby.

Locally, the value of property in Rugby and the number of people moving remain largely steady overall, although looking across at the different regions, there are certainly regional variations. Talking to fellow property professionals in the posh upmarket central London areas of Mayfair and Kensington, the number of people looking to buy and registering interest with agents is continuing to climb after 18 months in the doldrums, whilst in other parts of the UK, there is restraint amongst both buyers and sellers in some locations.

The things that affect the national property market are the big economic numbers. Nationally, over the last few months, thankfully, the economic forecast and predictions have improved, notwithstanding the Brexit uncertainties. Inflation has mercifully throttled back its high growth seen in 2016 to the current level of 2.1% (from 2.7% average last year), coupled with marginally stronger wage growth at 2.5%. Unemployment is at a 42-year low at 4.2% and UK consumer spending power rose to an all-time high last month to £331.04bn – all positives for consumer sentiment.

Look further afield, a resilient property market depends on the UK’s economic health with the outside world, so if Sterling weakens, that makes imports more expensive, meaning inflation increases, and this matter I talked about a few weeks ago in my blog article … interest rates could be raised to bring inflation under control, which in turn could seriously affect the property market. On the assumption Brexit negotiations are successful, economic growth should continue to be upward and positive, meaning confidence would be increased … which is the vital element to a good housing market.

Looking closer to home now, Rugby landlords and Rugby homeowners might be interested in the how the regional and Rugby markets have performed over the last 20 years (compared to the National picture). Let’s look at the regional picture first,

Rugby has outperformed the West Midlands housing market by 4.82%……whilst nationally, Rugby has outperformed the country by 5.81%

That means a Rugby homeowner has profited by an additional £14,776 over the last 20 years compared to the average homeowners across the country.

I found it interesting to see the ups and downs of the Rugby, West Midlands and National markets in this graph. How the lines of graphs roughly go in the same direction, how the 2007/08 property crash timings and effects were slightly different between the three lines and finally how the property markets performed in the post-crash years of 2011 to 2014 … fascinating!

So, what does this all mean for Rugby homeowners and Rugby landlords?

Well, house prices going up or down are only an issue when you sell or buy. In the last 12 months, only 1,076,288 (let’s call it’s a straight million between friends!) properties changed hands out of 27.2 million households in the UK in 2017, meaning only 3.7% would have been affected if property values had dropped in the last year.

Property values in Rugby are 262.48% higher than the summer of 1998

Yet this has been a long-term gain. The number one lesson in property is that it is a long-term game.  The biggest issue in property isn’t house values or prices … it’s the number of homes built, because the number of households nationally has only increased by 6% since 2007, whilst the population has grown by 7.6%. That doesn’t sound a lot, until you express it another way…

If the UK population had had only grown by the same percentage as the percentage growth in UK households in the last decade, there would be 1,000,000 less people living in the UK today

The final thought for this article is this, apart from central London, over the last 20 years it hasn’t mattered what part of the UK you were in with regards to the property market. Be you a landlord or homeowner, property is a long game, so look long term and you will win because until they start to build more homes, from the current levels of 180,000 new homes built per year to at least 250,000 households built per year, demand will, over the long term, outstrip supply for owning and renting!

How Valuable is your Time?

Are you up to speed with all 170 Rented Sector Regulations?​

We are coming across landlords on a daily basis who currently manage their own tenancies, for want of a better word – ‘unintentionally badly’. Legislation now imposed on landlords is lengthy and ongoing – 170 items to be exact. It is abundantly clear from our seminars and workshops that private landlords are unaware of what their obligations are and legal liabilities. In the event of an incident where non compliance can be proved – the consequences could be catastrophic. We have known landlords across Warwickshire to be taken to court, penalised with heavy fines and in some cases, particularly in London, prison sentences have been levied. Local Authorities are now carrying out spot check inspections on properties and issuing fines where necessary, fines as high as £30,000.

If you would like a schedule of all the legislation you need to be aware of please let us know.

We note from our records that you may currently let and manage your own rental property and just wondered if this was the case is now the time to reconsider your options and free up your valuable time to do more of the things you enjoy? Let us carry the burden of ensuring you are following the letter of the law and not leaving yourself exposed.

We have specialised in managing properties for the last 29 years and we have won many awards over the years to back this up. We take the hassle and worry out of many of the things, you as a landlord have or will encounter whilst managing your investment yourself, these being:

  • Remaining Law and Legislation compliant – to encompass Gas Safety, changes to Electrical Check Regulations, proposed changes to tenancy lengths, Legionella Checks, HHSRS (Housing Health and Safety Rating System) Complaint, Mees (Minimum Energy Efficiency Systems)
  • Aware of all pending government changes and how it impacts you as a landlord and the requirement to pass all necessary information onto the tenant
  • Ensuring renewal agreements are created correctly in light of the Deregulation Act for tenancies post 2015
  • Ensuring Deposits are correctly registered with an approved Government Scheme
  • Ensuring now claims for being discriminatory are made – Race Relations Act & Disability Discrimination Act
  • Aware of Rent collection procedures
  • Managing rent arrears so as not to jeopardise servicing of a Section 6a
  • Arranging and conducting property inspections and to comply with the Equality Act 2010 (harassment)
  • Dealing with maintenance issues and logging all events inc due diligence for contractor liability insurance
  • Fully aware of the Landlord & Tenant Act 1985 Section 11 Landlords Repairing Obligations
  • Deposit dispute resolution & timelines involved
  • Dealing with eviction in the event of non-payment and aware of the Freedom from Eviction Act 1977
  • Dealing with complaints from neighbours
  • GDPR compliance – are you registered with the ICO (Information Commissioners Office) – have you issued your tenant with a Privacy Policy?

    These are the main areas of discontent for landlords but the ones we are experts in. We eliminate that ‘landlord/tenant/ relationship and will always address the situation as your agent and act in your best interest. The common issue that arises every time a landlord deals directly with the tenant is that they feel its often difficult to address delicate situations such as rent arrears, untidiness, complaints from neighbors and the eviction process.

    We would welcome the opportunity to discuss how we can help you alleviate any stress or concerns you may currently have. Let us show you just what we can do. We can do as much or as little as you like and tailor the service according to your needs. The benefit to you? More free time. No phone calls at inconvenient times. No need to organise repairs. No awkward conversations about rent arrears. No exposure to any potential legal action.

    If however, you are perfectly happy with your current set up then please forgive the intrusion. If you feel you may need us in the future you know where we are.

Exit of landlords from market pushing up asking rents as stock drops

A drop in available properties is pushing asking price rents to record highs, Rightmove has reported.

The portal says that available stock has dropped 8.7%, exacerbated by a 19.4% fall in London.

National asking prices for new rents, excluding London, in the third quarter this year are £802.

It is the first time that average asking rents outside London have been over £800.

In London, the average asking price has included down, from £2,000 per month in the second quarter, to £1,992.

Rightmove commercial director Miles Shipside said: “Rental demand is currently outstripping supply in many locations, especially in the capital.

“The exit of more landlords from the buy-to-let market has been due to a raft of different factors.

“What we’re left with is a lack of available homes for tenants looking to find their next place to rent, meaning that when the right kind of property does come along it isn’t sticking around for very long before it’s snapped up.”

Source: www.propertyindustryeye.com

Extra Funding Is Required for Affordable Homes in Rugby

In my blog about the Rugby Property Market I mostly only talk about two of the three main sectors of the local property market, the ‘private rented sector’ and the ‘owner occupier sector’. However, as I often stress when talking to my clients, one cannot forget the third sector, that being the ‘social housing sector’ (or council housing as some people call it).

In previous articles, I have spoken at length about the crisis in supply of property in Rugby (i.e. not enough property is being built), but in this article I want to talk about the other crisis – that of affordability. It is not just about the pure number of houses being built but also the equilibrium of tenure (ownership vs rented) and therein, the affordability of housing, which needs to be considered carefully for an efficient and effectual housing market.

An efficient and effectual housing market is in everyone’s interests, including Rugby homeowners and Rugby landlords, so let me explain ..

An average of only 146 Affordable Homes per year have been built by Rugby Borough Council in the last 9 years

The requirement for the provision of subsidised housing has been recognised since Victorian times. Even though private rents have not kept up with inflation since 2005 (meaning tenants are better off) it’s still a fact there are substantial numbers of low-income households in Rugby devoid of the money to allow them a decent standard of housing.

Usually, property in the social housing sector has had rents set at around half the going market rate and affordable shared home ownership has been the main source of new affordable housing yet, irrespective of the tenure, the local authority is simply not coming up with the numbers required. If the local authority isn’t building or finding these affordable homes, these Rugby tenants still need housing, and some tenants at the lower end of the market are falling foul of rogue landlords. Not good news for tenants and the vast majority of law abiding and decent Rugby landlords who are tarnished by the actions of those few rogue landlords, especially as I believe everyone has the right to a safe and decent home.

Be it Tory’s, Labour, SNP, Lib Dems, Greens etc, everyone needs to put party politics aside and start building enough homes and ensure that housing is affordable. Even though 2017 was one of the best years for new home building in the last decade (217,000 home built in 2017) overall new home building has been in decline for many years from the heady days of the early 1970s, when an average of 350,000 new homes were being built a year.  As you can see from the graph, we simply aren’t building enough ‘affordable’ homes in the area.

The blame cannot all be placed at the feet of the local authority as Council budgets nationally, according to Full-Fact, are 26% lower than they have been since 2010. 

So, what does this mean for Rugby homeowners? Well, an undersupply of affordable homes will artificially keep rents and property prices high. That might sound good in the short term, but a large proportion of my Rugby landlords find their children are also priced out of the housing market. Also, whilst your Rugby home might be slightly higher in value, due to this lack of supply of homes at the bottom end of the market, as most people move up the market when they do move, the one you want to buy will be priced even higher.

Problems at the lower end of the property market will affect the middle and upper parts. There is no getting away from the fact that the Rugby housing market is all interlinked .. it’s not called the Property ‘Ladder’ for nothing!

Rugby Property Market – Which Houses are Actually Selling?

Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down … the Press is full of column inches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging a national group of letting and estate agents, talking to my fellow property professionals from around the UK, the one thing that is immediately apparent is the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways.  

… And that made me think … is there just one Rugby Property Market or many?

I like to keep an eye on the property market in Rugby on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Rugby, be that a buy-to-let property for a Rugby landlord or an owner occupier house for a home owner.  So, I thought, how could I scientifically split the Rugby housing market into segments, so I could see which part of the market was performing the best and the worst.

I decided the best way was to split the Rugby property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Rugby, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile.  Looking at the market, I have calculated that these are the price bands in Rugby are as follows:

· Lowest Quartile (lowest 25% in terms of value) … Up to £160,000

· Lower/Middle Quartile (25% to 50% Quartile in terms of value) …  £160,001 to £230,000

· Middle/Upper Quartile (50% to 75% Quartile in terms of value) … £230,001 to £325,000

· Upper Quartile (highest 25% in terms of value) … £325,001 Upwards

So, having split the Rugby Property Market approximately into four equal sizes, the results in terms what price band has sold (subject to contract or stc) the most is quite enlightening –

The best performing price range in Rugby is the middle market. As I would expect, the upper quartile (the top 25%) is finding things toughest. Interestingly for Rugby landlords, the lower market is also selling well, meaning there are plenty of Rugby landlords buying properties to add to their buy to let portfolios. Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere).

It is a fact that British (and Rugby’s) housing markets have ridden the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. No matter what happens to us Brexit or anything else … unless the Government starts to build hundreds of thousands extra houses each year, demand will always outstrip supply … so maybe a time for Rugby landlord investors to bag a bargain?

Want to know where those Rugby buy to let bargains are?  Follow my Rugby Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Rugby, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

39% More Rugby Home Owners Wanting to Move Than 12 Months Ago

As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Rugby and the surrounding area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Rugby home sellers are putting their properties on to the market than a year ago.

At the start of 2007 there were 682 properties for sale in Rugby but by September 2008, when the credit crunch was really beginning to bite, that number had risen to 1,068 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market.

Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Rugby property between the end of 2007 and Spring 2009.

However, over the last five years, we have seen a steady decrease in supply of properties coming onto the market for sale and steady demand, meaning Rugby property prices have remained robust.  A stable housing market is one of the foundations of a successful British economy, as it’s all about getting the healthy balance of buyer demand with a good supply of properties. Nevertheless, if you had asked me a couple of years ago, I would have said we were beginning to see there was in fact NOT enough properties coming on to the market for sale … meaning in certain sectors of the Rugby property market, house prices were overheating because of this lack of supply.

So, it is pleasing to note, looking at the recent numbers …

There are 39% more properties for sale in Rugby today than a year ago

There were 176 properties for sale 12 months ago, and today that stands at 245. Definitely a step in the right direction to a more stable property market.

Even better news, since the Chancellor announced the stamp duty rule changes for first time buyers (FTB), my fellow agents in Rugby say that the number of FTB’s registering on the majority of agent’s books has increased year on year. That has still to follow through into more FTB’s buying their first home, however, with the heightened levels of confidence being demonstrated by both Rugby house sellers and potential house buyers, I do foresee the Rugby Property Market will show steady yet sustained improvement during the first half of 2018.

What does this mean for Rugby landlords or those considering dipping their toe into the buy to let market for the first time? Landlords will need to keep improving their properties to ensure they get the best tenants. It is true that demand amongst FTB’s is increasing, albeit from a low base. Even with the new landlord tax rules, buy to let in Rugby still looks a good investment, providing Rugby landlords with a good income at a time of low interest rates and a roller coaster stock market.

If you are thinking of investing in bricks and mortar in Rugby, it is important to do things correctly as making money won’t be as easy as it has been over the last twenty years.  With a greater number of properties on the market .. comes greater choice. Don’t buy the first thing you see, buy with your head as well as your heart … and don’t forget the first rule of Buy To Let Investment …..

I will tell you that 1st rule in a couple of weeks!

Rugby Property Market Worth More Than British Land Co

The value of all the homes in Rugby has risen by more than 262% in the past two decades, to £6.619bn, meaning its worth more than the stock listed company British Land Company, which is worth £6.505bn.

Those Rugby homeowners and Buy-to-Let landlords who bought their homes twenty or more years ago have come out on top, adding thousands and thousands of pounds to the value of their own Rugby homes as the younger generation in Rugby continue to be priced out of the market.  This is even more remarkable because, in those twenty years, we had the years of 2008 and 2009 following the global financial crisis, where we saw a short term drop in Rugby house prices of between 15% and 20% (depending on the type of property). And although there have been a number of consecutive years of growth in property values recently in Rugby it hasn’t been anywhere near the levels seen in the early 2000’s.

Twenty years ago, the total value of Rugby property was worth £1.827bn. Over those twenty years, total property values have increased by £4.792bn, meaning today, the total value of all the properties in Rugby is worth £6.619bn. Even more remarkable, when you consider the FTSE100 has only risen by 40.84% in the same time frame. Also, when I compared it with inflation, i.e. the UK Retail Price Index, inflation had risen by 72.2% during the same twenty years.

So, what does this all mean for Rugby?  Well as we enter the unchartered waters of 2018 and beyond, even though property values are already declining in certain parts of the previously over cooked central London property market, the outlook in Rugby remains relatively good as over the last five years, the local property market has been a lot more sensible than central London’s.

Rugby house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with persistent immigration and population growth.  Secondly, with 0.25% interest rates, borrowing has never been so cheap and finally, the simple lack of new house building in Rugby. Not even keeping up with current demand, let alone eating into years and years of under investment mean only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Rugby has and always will, out ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2018 Rugby Property Market. As always, all my articles can be found at the Rugby Property Market Blog https://rugbypropertyblog.co.uk/

 

Rugby’s ‘Millennials’ set to inherit £366,555 each in property!

That got your attention … didn’t it!

But before we start, what is Generation X, let alone Generation Z, Millennials, Baby Boomers  … these are phrases banded around about the different life stages (or subcomponents) of our society. But when terminologies like this are used as often and habitually as these phrases (i.e. Gen X this, Millennial that etc.), it appears particularly vital we have some practical idea of what these terms actually mean. The fact is that everyone uses these phrases, but often, like myself, they are not exactly sure where the lines are drawn …until now…

So, for clarity …

Generation Z:         Born after 1996
Millennials:             Born 1977 to 1995
Generation X:         Born 1965 to 1976
Baby Boomers:      Born 1946 to 1964
Silent Generation:  Born 1945 and before

My research shows there are 9,006 households in Rugby owned by Rugby Baby Boomers (born 1946 to 1964) and Rugby’s Silent Generation (born 1945 and before). It also shows there are 15,231 Generation X’s of Rugby (Rugby people born between 1965 to 1976). Looking at demographics, homeownership statistics and current life expectancy, around two-thirds of those Rugby 15,231 Generation X’s have parents and grandparents who own those 9,006 Rugby properties.

… and they will profit from one of the biggest inheritance explosions of any post-war generation to the tune of £2.363bn of Rugby property or £232,597 each but they will have to wait until their early 60’s to get it!

However, it’s the Millennials that are in line for an even bigger inheritance windfall.

There are 10,504 Millennials in Rugby and my research shows around two thirds of them are set to inherit the 9,788 Rugby Generation X’s properties. Those Generation X’s Rugby homes are worth £1.2.568bn meaning, on average, each Millennial will inherit £366,555; but not until at least 2040 to 2060!

While the Rugby Millennials have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news for those Rugby Millennials, including some from poorer upbringings who in the past would have been unlikely to receive gifts and legacies.

However, inheritance is not the magic weapon that will get the Millennials on to the Rugby housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home…but before all you Rugby Millennials start running up debts, over 50% of females and around 35% of men are going to have to pay for nursing home care. Interestingly, I read recently that a quarter of people who have to pay for their care, run out of money.

So, if you are a Rugby Millennial there potentially will be nothing left for you.
Of course, most parents want to give their children an inheritance, the consideration that what you have worked genuinely hard for over your working life won’t go to your children to help them through their lives is a really awful one … maybe that is why I am seeing a lot of Rugby grandparents doing something meaningful, and helping their grandchildren, the Millennials, with the deposit for their first house.

One solution to the housing crisis in Rugby (and the UK as a whole) is if grandparents, where they are able to, help financially with the deposit for a house. Buying is cheaper than renting – we have proved it many times in these articles … so, it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit for these Millennials.

Maybe families should be distributing a part of the family wealth now (in the form of helping with house deposits) as opposed to waiting to the end… it will make so much more of a difference to everyone in the long run.

Just a thought?

Rugby Private Rents Hit £10.83 per sq. foot

As I am sure you are aware, one the best things about my job as an agent is helping Rugby landlords with their strategic portfolio management. Gone are the days of making money by buying any old Rugby property to rent out or sell on. Nowadays, property investment is both an art and science. The art is your gut reaction to a property, but with the power of the internet and the way the Rugby property market has gone in the last 11 years, science must also play its part on a property’s future viability for investment.

Many metrics most property professionals (including myself) use when deciding the viability of a rental property is what properties are selling for, the average rent, the yield and an average value per square foot.

However, another metric I like to use is the average rent per square foot. The reason being is that is a great way to judge a property from the point of view of the tenant … what space they get for their money. Now of course, location has a huge influencing factor when it comes to rents (and hence rent per square foot). Like people buying a property, tenants also have that balancing act between better/worse location, more vs. less money and size of accommodation (bigger and more rooms equalling more money) and where they live (location) verses making ends meet.

Interestingly, I know there are a lot of you in Rugby who like to see my statistics on the Rugby property market, so before I talk about the rental figures per square foot, I wanted to share the £ per square foot on the values. In Rugby, the current AVERAGE figures are being achieved (and I must stress, these are average figures, so there will an enormous range in these figures), but on average, properties in Rugby, split down by type are achieving …

”    Rugby Detached Property – £264 / sq ft
”    Rugby Semi Detached Property – £238 / sq ft
”    Rugby Terraced Property – £214 / sq ft
”    Rugby Apartments – £238 / sq ft

So, the rental figures:

The extent of space you get for your rent is replicated in the space you get for your money when buying a property. The average size of rental property in the Rugby area is 814.8 sq ft (interesting when compared to the national average of 792.1 sq ft)

This means the average rent per square foot currently being
achieved on a Rugby rental property is £10.83 per sq ft per annum

So, what we can deduce from this?  Well the devil is always in detail!

Whilst I was able to quote the average overall figure and the fact my research showed it was quite clear from data that there is relationship between the average £ per sq ft figures on property values and average £ per sq ft on rental figures as a property grows in size. However, something quite intriguing happens to those figures, in terms of what the property will sell for and what it will rent for, when we change and increase the size of the property.

My research showed that doubling the size of any Rugby property doesn’t mean you will double the value of it … in either value or rent. This is because the marginal value increases diminish as the size of the property increases. In layman’s terms … Subject to a few assumptions, double the size of the house doesn’t mean double the value … what really happens is a doubling of the size gives only an approximately 40% to 65% uplift in value, but here comes the even more fascinating part … when it came to the rental figures, double the size of the house meant only 20% to 45% in increase in rent.

In a future article, I will be discussing the actual added value an extension can bring … but in the meantime, in an overall and sweeping statement, most of the time it makes sense to extend if you are going to live in the property as long as the extension is proportionate to the property, but if you are going to rent it out … possibly not.