Chipping Norton House Prices vs Chipping Norton Rents since 2006
The Chipping Norton housing market is a fascinating beast and has been particularly interesting since the credit crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the country. Having said that looking at both what we do as an agent and chatting with my fellow property professionals in Chipping Norton, the market has certainly changed for both buyers and sellers alike be they Chipping Norton buy to let landlords, Chipping Norton first time buyers or Chipping Norton owner occupiers looking to make the move up the Chipping Norton property ladder.
Chipping Norton House Values are 0.06% higher than a year ago, and the rents Chipping Norton tenants have to pay are 1.5% higher than a year ago
When we compare little old Chipping Norton to the national picture we see that national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago. And this will surprise you even more - as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).
However, if we look further back...
Since 2006, Chipping Norton House Values are 64.8% higher, yet the rents Chipping Norton tenants have had to pay for their Chipping Norton rental property are 26.4% higher
….. which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Chipping Norton tenants are 15.6% better off in ‘real spending power terms’.
Looking at the figures the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Chipping Norton house values in the years of 2008 and 2009 ..... yet as Chipping Norton property values started to rise after the summer of 2009 see how Chipping Norton rents dipped 6/12 months later ….. Fascinating!
So, we have a win for tenants and a win for the homeowners as the latter are also happy due to the increase in the value of their Chipping Norton property.
However, maybe an even more interesting point is for the long-term Chipping Norton buy to let landlords. The performance of Chipping Norton rental income vs Chipping Norton house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).
Whilst it’s true Chipping Norton landlords have benefited from decent capital growth over the last decade – with the new tax rules for landlords – now more than ever it’s so important to maximise one’s yields to ensure the long-term health of your Chipping Norton buy to let portfolio. More and more I am sitting down with both Chipping Norton landlords of mine and landlords of other agents who might not be trained in these skills - to carry out an MOT style check on their Chipping Norton portfolio, to ensure their investment will meet their future needs of capital growth and income. If you don’t want to miss out on such a MOT check-up, drop me a line – what have you got to lose? 30 minutes of time against peace of mind - the choice is yours.
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