The Residential Sales marketplace in Harrogate is overheated and running at record levels for reasons we all understand – as per the Stamp Duty ( SDLT) holiday , historically low interest rates and very attractive Mortgage deals ( with 95 % government backed Mortgages are set to go live in April). The Rental marketplace is cooler but still steady and strong.
The news that around half of the adult population have now had their first vaccine jab is fuelling an even more optimistic outlook and hopefully the end to the national lockdowns is in sight.
Given the above we would like to answer the key question we are being asked by our Landlords / Investors – is now a good time for us to invest in property in Harrogate & District ?
Our answer is YES.
We take the view that cash held in savings accounts is actually losing an Investor their money as interest rates are considerably less than inflation. Stocks and Shares are an option but with them is always an inherent uncertainty and volatility.
Investing in property (“ bricks & motor “) however , especially here in the Teflon town , is as close to a safe financial bet as most people are ever likely to find. However the real debate is not whether or not property prices and rents are robust / strong in Harrogate – because they are – it’s the time question.
Why is investing NOW so important?
All in fact rests on just one word – DEMAND .
Any commodity where demand far outstrips supply – especially for good quality – is going to increase in price.
All governments over the years and especially so in more recent times have tried to simultaneously raise more tax revenue and at the same time dampen the financial attractiveness of being a BTL ( Buy to Let) Landlord. The thinking in Whitehall is maybe that introducing additional taxes and more regulations will help FTB’s ( First Time Buyers).
Simple logic however suggests that we just need to build a lot more houses – especially Council houses and Starter homes for FTB’s to lessen demand and stabilize house prices.
We have certainly seen no evidence that bearing down financially on Landlords works here in Harrogate where our Landlords tend to work in a strategic way being content to get a reliable decent yield ( rent revenue) and just “ bank “ the attractive Capital growth in the property values for another day.
So what is Letting the fastest ?
In the new post Covid world Rentals with outside space / south facing gardens / off street parking and garages are more than ever gold standard – as is catchment for the best schools – and these gold standard homes attract higher rents and fewer voids.
Space for a separate office to accommodate the trend towards home working – either all or part of the week – is a nice bonus and reflect structural changes in the working landscape.
It is not uncommon at the moment for us to make quality Sales or Rental properties live on the main portals during the early afternoon and by the close to have filled all the viewing slots. So if you are thinking of buying Residential property for investment, and plan to take full advantage of the recent extension of the stamp duty holiday you only have until the 1St of August.
So where to buy these houses?
Some things will not change post Covid.
Harrogate and District is the place we call home . but lots of residents work in Leeds / Bradford , in York , or further afield and some commute regularly to London. Proximity to the Railway and Bus stations as well as the town centre will always be valued. When the Cafes /Pubs / Restaurants / Cinemas / Theatres are open again lots of folk will still prefer to leave the car and stroll into town in a reasonable time – 15 minutes ?. If you buy a property in these central areas you are on to a decent bet that it will let quickly. Here however we must always reinforce the proviso – good quality – those new tenants fleeing the congested urban areas of the big cities for the wonderful green spaces and happy lifestyle of Harrogate set high standards in return for high rents.
In summary now is the right time to invest !!!!
If you wish to discuss the above or are interested in the Property market in Harrogate then please contact us for a free no obligation chat about the property services we provide in Residential Sales & Lettings.
Charles
