Ashford House Prices v Ashford Rents since 2006

 

The Ashford housing market is a fascinating beast and has been particularly interesting since the 2008/09 Credit Crunch and subsequent property market crash. There is currently talk of a ‘property bubble’ forming nationally with Brexit seeming to be the ‘go-to’ excuse for every issue in the Country. Saying that, looking at both what we do as an agent, and chatting with fellow property professionals in Ashford, the market has certainly changed for both buyers and sellers alike (whether Ashford buy to let landlords, Ashford first time buyers or Ashford owner occupiers looking to make the move up the Ashford property ladder).

Ashford House Values are 0.24% lower than a year ago, and the rents Ashford tenants have to pay are 1.5% higher than a year ago

When we compare little old Ashford to the national picture; 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 across the EU in the same time frame).

However, if we look further back…

Since 2006, Ashford House Values are 53.1% higher, yet the rents Ashford tenants have had to pay for their Ashford rental property are 26.4% higher

…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Ashford tenants are 15.6% better off in ‘real spending power terms’.

Looking at the graph, 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 Ashford house values (in red) in the years of 2008 and 2009 … yet as Ashford property values started to rise after the summer of 2009, see how Ashford rents dipped 6/12 months later (the yellow bars)…. Fascinating!

Ashford House Prices v Ashford Rents since 2006

So, a win for tenants and a win for homeowners, who are also happy with the increase in the value of their Ashford property.

However, maybe an even more interesting point is for the long-term Ashford buy to let landlords. The performance of Ashford rental income vs Ashford house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it’s true Ashford 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 Ashford buy to let portfolio.

More and more I am sitting down with my Ashford landlords, and landlords currently with other agents, to carry out an MOT style check on their Ashford portfolio to ensure their investments will meet future needs of capital growth and income. If you don’t want to miss out on such a check-up, drop me a line – what have you got to lose? 30 minutes of your time against peace of mind….

Taylors Residential Lettings Limited, Company no. 6002742, Regd Office: Suite 1, Invicta Business Centre, Monument Way, Ashford TN24 0HB