Wed 30 Jan 2019
The conventional way of categorising property in Great Britain is to look at the number of bedrooms rather than its size in square feet or meters. My intuition tells me that homeowners and tenants are happy to pay for more space. It’s quite obvious, the more bedrooms a house or apartment has, the bigger the property is likely to be. And it’s not only the tangible additional bedrooms but those properties also tend to have larger (and more) reception rooms. However, if you think about it this isn’t so surprising given that properties with more bedrooms would typically accommodate more people and, therefore, require larger reception rooms.
In today’s Stamford property market the homeowners and landlords I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive and which ones may detract from the price. Over time homeowners and tenants wants and needs have changed. Location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods can achieve a price almost 50% higher than a similar house in an ‘average’ area. Nevertheless, after location, the next characteristic that has a significant influence on the desirability, and thus price, of property is the number of bedrooms and the type (i.e. Detached/Semi/Terraced/Flat).
The number of bedrooms for owner-occupiers very much depends on the size of the family and the budget, whilst Stamford landlords have to consider the investment opportunity. In this article, I have analysed Stamford’s housing stock into bedrooms and tenure.
Initially looking at Stamford homeowners...
And now the Private rented sector …
It can quite clearly be seen that Stamford owner-occupiers tend to occupy the larger properties with more bedrooms. This would be expected due to the demographic of homeowners and people that privately rent.
However, this shows there could be opportunities for Stamford buy-to-let landlords to purchase larger properties with more bedrooms to attract tenants requiring properties with more bedrooms. But, before you all go buying larger 4 bed and 5 bed mansions to rent them out, a lot of bigger properties in Stamford don’t make financial sense when it comes to buy-to-let.
For numerous years Stamford buy-to-let landlords have been the lone buyers at the smaller one and two bed starter homes end of the market, as they have been lured by elevated tenant demand and eye-catching returns. Now, some Stamford landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first time buyers.
This is great news for first time buyers, but one final note for Stamford landlords - all is not lost you can still pick up bargains, you just need to be a lot more savvy and do your homework.