Rotherham property value has decreased in the last 6 months: is this good news for landlords?

30th August 2018

There is potentially good news for buy-to-let landlords in the Rotherham area: the combined value of our local housing market has fallen by £178.6 million in the last 6 months, meaning the average value of a Rotherham property has decreased in value by an average of £4,560. This is also great news for Rotherham first time buyers looking to get a foot on the property ladder.

Investors will be on the look out for potential bargains that may help them to expand their portfolio. There are many options about and we recommend the featured property deals over at the Rotherham Property Blog for landlords (and first time buyers) who are looking to purchase a property. You can also visit the website of Fenton Board who are an independent estate agent operating in the local area.

What’s the cause of the drop and is it important?

The reason for this drop is the slight hesitation in the market due to the uncertainty over Brexit.

Investing in Rotherham property, whether you want to live in it or as a buy-to-let investment, is a long-term game. In the grand scheme of things, this minor change over the last 5 or 10 years is nothing.

The RICS’s latest survey of its Chartered Surveyor members showed that nationally the number of properties actually selling has dropped for the 16th month in a row. Locally in Rotherham, certain sectors of the market are matching that trend, yet others aren’t. It really depends which price band and type of property you are looking for.

The RICS also said its member’s lettings data showed a lower number of rental properties coming on to the market. Anecdotal evidence suggests that (and this is born out in the recent English Housing Survey figures) Rotherham tenants over the last few years are stopping in their rental properties longer, meaning less are coming onto the market for rent.

We have noticed locally that when the landlord has gone the extra mile in terms of decoration and standard of finish, the price of rents has been pushed up. Where landlords have been remiss with improvements, rents are often declining. Rotherham tenants are getting pickier – but will pay top dollar for quality. So much so, I believe there will be a cumulative rise of around 14-16% in private rents over the course of the next five years for the best properties on the market.

What about the property values?

The drop in Rotherham property values isn’t concerning and is a drop in the ocean when looking at the value of property across our local area.

In the short term, say over the next six months and assuming nothing silly happens in Brexit negotiations, it will be more of the same until the end of the year. In the meantime, the on-going challenges remain the same such as building more affordable properties locally and nationally. Ultimately, it is likely that property values across the country will recommence an upward trajectory as we go into 2019.

A final thought for buy-to-let landlords

Local buy-to-let landlords, the Government has been trying to rebalance the housing market by taxing landlords and providing a lift for first time buyers. We posted an article about this recently. It’s important to be aware of how this might impact you, so if you do need our help and guidance, please get in touch. We are always happy to assist you.