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Ainsdale Village, Southport

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By Spencer Gordon, Jan 18 2016 04:15PM

The latest Rightmove house price index has revealed that new property coming to market has risen in price by 0.5% (+£1,509) - the second highest rise at this time of year since 2007.

First-time buyers are also seeing a 6.6% year-on-year increase in the number of fresh-to-the-market homes in their target sector of two bedrooms or fewer, the highest since 2007. Additionally, the monthly price increase in this sector is at a near standstill (+0.1%, +£209), attributed to a keenness to attract buy-to-let investors before the April tax deadline.

Miles Shipside, Rightmove director, commented: “Upwards price pressure remains, with the second-highest rise seen at this time of year for nine years. The early snapshot of home-hunter visits in the first week of 2016 is up by 21% on the same period last year to 27.8 million visits, showing demand is not letting up either. Encouragingly for first-time buyers there’s more fresh choice with more property coming to market in their target sector. With their asking prices pretty much the same as a month ago, perhaps the knock-on effects of the more punitive landlord tax regime have arrived early and they now face a dilemma over whether to buy now or wait to see if prices drop in this sector over the next few months.”

Adrian Whittaker, Sales Director, New Street Mortgages, commented: “Today’s figures from Rightmove show that house prices continued to rise over what is typically a quieter period, as a lack of supply coupled with rising demand squeezes the market.

With this imbalance between supply and demand, the speed of a mortgage application could make the difference between having an offer accepted and losing out to another buyer. This makes it is even more important than ever for advisers to choose a lender that has the right technology and processes in place to offer a service that meets the demands of this fast-paced environment.”

Jeremy Duncombe, Director, Legal & General Mortgage Club, added: “This monthly increase in house prices is unusual for this time of year, and we expect house price inflation to climb further over the course of the year. The lack of supply is making the market more competitive and an expected increase in demand in the coming months is likely to exacerbate this issue. The government and housebuilders must work together to address this problem by building more properties of the right size and in the right places to accommodate those looking to buy.

The government must also look to encourage more efficient use of current housing stock by helping more people to ‘rightsize’ through tax incentives and cuts in stamp duty. This two-tiered approach will help to reduce the current imbalance between supply and demand and make homeownership a more achievable goal for many.”

FREE 2016 Valuation - Call 01704 460160 or pop in to our Ainsdale Village office to book yours.

By Spencer Gordon, Jan 18 2016 02:26PM

Well, we have finally moved in! Our new office is ready for business, we are right in the middle of Ainsdale Village across the road from the Coop and neighbours of Broughs Butchers and the Computer Shop.

We technically moved during December when we got the keys and started the office refurb, but officially opened last week. Ainsdale Village is a delightful place to work and we intended moving here for quite a while, the shop became available and we jumped straight in!

Our marketing leaflets have started to go out, the second set are due at the end of January, please keep your eyes peeled. The window and wall displays are all in situ and are looking good.

If you are interested in selling or renting a property then please feel free to call in and discuss – the new heating system is installed, so it is lovely and warm in the office!

We are offering anyone a FREE 2016 valuation on their property, if you are wanting one of these then please get in touch – either 01704 460160 or pop in at Spencer Gordon 575 Liverpool Road, Ainsdale Village PR8 3LU.

Hopefully see you soon!

By Spencer Gordon, Jan 13 2015 02:28PM

Where to buy your first or your next buy to let property?

Investing in the Southport property buy to let market is something that shouldn’t been done lightly. For those new to the buy to let investment game, the yield is the yearly rent from a property reflected as a percentage of the value of the property (one might consider it in the same light as the interest rate from your savings account) whilst the 'Capital growth' is the amount the property goes up in value each year reflected as a percentage of the value of the property.

The subject of investing in villages for buy to let is an interesting one. In fact it can be as risky as investing in student lettings or HMO’s (Houses of Multiple Occupation where everyone has a bedroom with a shared kitchen and bathroom).

In Southport we have many surrounding villages that appeal to the buy to let investor, Churchtown, Banks, Ainsdale to name just three. Now, there is demand for all three of these areas, and on this basis look good areas for a buy to let investment. Often, when looking at a particular property or a number of properties for a landlord, I like to take a longer look at the market, as I consider a period of around 10 to 15 years a more suitable time frame for capital growth, property investment cannot be judged over short time frames and most certainly not by averages. I have recently been discussing with a landlord the pros and cons of buying in the Banks area of Southport, there is quite a lot of modern property available to purchase in Banks and this is the type of property he is interested in (basically no refurb work to do – can move a tenant in immediately). We were looking at Westerdale Drive as an example and first impressions were great, there was one example where the property was sold in 2000 for £174k and sold again in 2014 for £302k, obviously fabulous ‘Capital Growth’, but when buying a buy to let property, there is a lot more to take into account! We looked at some flats on Guinea Hall Close, basically with the idea of buying two rather than one larger house. Again showed a decent capital growth 73k in 2001 sold again in 2013 for £114,950 – the rental return works at around £575pcm (please remember when buying a flat there are often management fees for communal gardening and entrance hall cleaning etc – in most cases paid by the landlord). This would net him around £500 per month less mortgage payments etc per flat. Something for him to think about, we also looked at a town centre terrace for around £85k that would return around £500 pcm but the capital growth does not look as good as say in Banks, Churchtown or Ainsdale.

Buying a buy to let property is a big decision, not an easy decision - it’s important to look at what type and to look at where the properties are that will effect good capital growth and command good rental return.

I pride myself by knowing the market with all its ups and downs, so I can give some great advice and opinion. It might not be what you want to hear but, I can assure you, it is what you need to hear!

If you want a chat about what (or not) to buy in the Southport property market, email me the property link from Rightmove to my email address and I will give you my honest opinion. chris@spencergordon.co.uk

Spencer Gordon Estate Agents Southport


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