Renting in One of Manchester’s Best Up-and-Coming Suburbs

Located just three miles away from the cosmopolitan city centre of Manchester, the area of Blackley offers a number of attractions for renters and the Blackley rental market is buoyant. It offers excellent public transport services, as well as strong road links to Manchester itself, neighbouring towns and villages, and the rest of the north west. Blackley has long been popular with renters of all ages, despite its sometimes slightly dubious reputation. Thanks to several new developments, including a variety of contemporary apartment buildings, Blackley will continue to appeal to renters and landlords alike well into the future.

Who Rents in Blackley?

Blackley is a diverse community with young families, couples, older families and retirees all living side by side. It has traditionally appealed to those who want to be close to the attractions of Manchester city centre, but who are either priced out of the centre itself or don’t want to live in the heart of the city. Blackley is popular with those who work or study in the city, and offers a number of different housing options to renters, including traditional red brick terraces, modern semi detached houses, contemporary apartments or smaller studio properties. As the area boasts such excellent public transport links, it is not necessary for those who live in the district to own a car, opening up the possibility of a far wider variety of potential renters.

Excellent Public Transport and Road Links

Blackley is serviced by a number of popular and busy bus routes, which offer frequent and quick journeys into the city centre. The area also enjoys strong links with other towns and villages on the Manchester outskirts, making it perfect for commuters who work all over the north of the city or in the city centre itself. Blackley is also served by the region’s popular Metrolink tram system, providing a convenient alternative to bus routes. Popular destinations such as Altrincham and Bury are easily reached via the excellent Metrolink network, as well as, of course, Manchester city centre.

The formidable M60 is within easy reach of Blackley, and actually acts as a border to the area. Located to the north of Blackley’s residential areas, the M60 provides quick and easy access to the rest of the north west region. Manchester city centre is also only a short drive from Blackley, although many regular commuters prefer to rely on bus or tram services to avoid getting stuck in busy traffic at peak travel times.

Blackley for Families

Blackley offers many attractions to families looking to rent in the area. It’s extremely conveniently situated for access to Manchester city centre, but also offers a number of amenities that will appeal to those with children of all ages. Blackley has several attractive parks, perfect for children to let off steam. The green spaces at Tweedale Common, Irk Valley and Nutbank Common are all within easy reach, as well as the locally famous Boggart Hole Clough. Offering a number of popular and enjoyable walks, Boggart Hole Clough has recently undergone an extensive programme of improvements to increase its appeal to local families and residents. The green and pleasant park has a variety of sports facilities, including tennis and basketball courts, as well as popular football pitches. The park hosts events throughout the year, some of which attract a large number of people from the surrounding areas. As well as firework displays each Guy Fawkes Night, the park also hosts summer family fun days designed to appeal to kids of all ages.

Blackley Amenities

Blackley has its own golf club and cricket club, both of which are well established and are great social hubs. The area is also well served by shops, including local independent retailers as well as famous high street chains. You’ll also find an impressive indoor market, and a modern and popular library.

Blackley Property

Traditional red brick terraces in various states of repair can be snapped up for as little as £60,000, but such bargains are becoming increasingly difficult to find. At the other end of the house market, it’s not unusual to see prices of around £300,000 and above for brand new semi and detached homes. These properties are attracting a new type of renter and homeowner to Blackley, and look set to enhance the reputation and appeal of the area over time. Luxury and modern apartments in the area can be found for less than £100,000, and the big appeal of these for landlords is that they will not generally need any work before they can be rented out, and they also tend to be fairly easy to market.

Manchester property construction ‘at highest level since 2008’

2,982 units are currently being built as the city establishes itself as the UK’s number one investment location.

Summary:

  • Manchester has witnessed close to 50% growth in the number of new residential units under construction in the city in the last 12 months
  • The demand for property in Manchester has pushed the number of planned new developments in 2016 passed pre-global recession levels
  • This pipeline of property suggests further sustainable economic growth in the coming years for a city already identified as a key investment location

Manchester’s skyline is currently littered with cranes – and this should be good news for the city’s investors.

2,982 properties across 13 schemes are currently being built in Manchester. The results from Deloitte Real Estate’s latest Crane Survey also identifies residential property as the primary type of real estate under construction, with nearly twice as many units currently under construction as last year and the highest volume since 2008.

The report said: “The 2016 Crane Survey shows that the number of new starts is up by 40% on 2014 and a number of major schemes that were highlighted as key projects in our last Crane Survey have now been delivered (20 in total).

“The healthy pipeline for the study area indicates that the local economy will continue to go from strength to strength if these trends continue.”

Manchester is currently named by HSBC as the UK’s number one city for yields from property investment and is one of only two cities in the north of England where property values are now higher than they were in 2007. This has been fuelled by a demand for rental accommodation from one of the country’s youngest populations, and a critical lack of supply that will see more families than properties in Greater Manchester by 2026.

But it’s the anticipated growth created by the £50 billion Northern Powerhouse that’s also accelerated the levels of institutional property investment in the city. 70,000 new jobs and 125,000 new inhabitants are expected to arrive in Manchester over the next 10 years, with investors keen to acquire assets now to realise the highest yield and capital growth such sustained economic investment will naturally trigger.

Government Landlord Bashing

We again have been hit with the government bashing landlords with additional taxes. We will all have opinions and some will change as the dust settles. A lot of landlords are in uproar calling this the end of buy to let especially after the damaging tax changes from the last budget meaning that there will be no tax relief on mortgage payments as it is reduced gradually over the next 4 years.

The stamp duty rates are

                                               

Property or lease premium or transfer value Before April 2016 After April 2016
Up to £40,000                            0%                                0%
From £40,000 to £125,000(the portion from £40,001 to £125,000)  0%                                3%
The next £125,000 (the portion from £125,001 to £250,000)                            2%                                5%
The next £675,000 (the portion from £250,001 to £925,000)

 5%

                               8%
The next £575,000 (the portion from £925,001 to £1.5 million)                          10%                              13%
The remaining amount (the portion above £1.5 million)                          12%                              15%

This new stamp duty tax will cost an extra £1350 on a property valued at £85,000

The new stamp duty tax apparently imposed to bring it much needed funds to help first time buyers and house builders is a 3% tax on you purchasing any additional buy to let property’s. This in itself certainly shouldn’t affect your decision to increase your portfolio as in real terms all this will do is mean that the return on your investment will only be delayed by 3 months or so. It has the potential to seriously distort the property market, as landlords and second homeowners rush to beat the April deadline and then go quiet. If you do continue to increase your portfolio, when it comes to selling up, you can offset purchase costs against any eventual capital gains tax – and that includes stamp duty. So, while you will get whacked with a big bill now, if a buy-to-letter eventually sells at a tasty profit, you can claim stamp duty back later on CGT. The Treasury confirmed to last night that this still remains the case. The question is, will it one day face the axe?

These changes only effect purchases over £40,000 being realistic these are not available in many areas and the areas where they are come with their own problems as far as renting them out is concerned. These areas are not in high demand by first time buyers and will over very little capital growth as their prices will remain low as many will try to purchase below the threshold

The majority of our landlords in the Manchester area hold property under the value of £125,000 as the rental returns in this area offer excellent yields. These properties are in demand because they offer some capital growth and great yields. I suspect there will be a small spurge in the market (especially in the auction rooms) between now and April from landlords buying however this will be short lived. I do think long term that these properties’ will rise in value as many landlords from the south and overseas who want to increase their portfolio move north for the better yields.

The impact of the removal of tax relief on mortgages will have an effect on the housing market over the next four years as some landlords decide to sell but along with the demand from first time buyers entering the market and increased interest from buyers from overseas and the southern market I see a continued increase in house prices of around 5% a year. This means house prices doubling over a 15 year period.

I see a larger increase in rental demand and along with the squeeze on landlords margins these cost being passed onto tenants resulting in an increase in rents. If rents increase at 5% a year that will also mean your rents doubling over 15 years also.

Imagine your current property/properties in 15 years’ time receiving double the rent you received at present and being worth twice as much. Taking into consideration inflation not expecting to increase by more than 2% it should leave landlords in comfortable position.

In the long term we will all get different visions from our crystal balls but we must always remember some golden rules.

Property investment is a stroll not a jog. Property investment is a long term investment.

There is a continual increase in demand for rental properties as we are not building enough and we have an ever increasing population mainly being caused by immigration at present

Manchester is a thriving city and it boundaries are forever increasing therefore your properties that are within easy reach of the city become more in demand and especially at the lower end as those people who work in the service industry in Manchester need easy access at inconvenient times at affordable cost but the increase demand will increase their rental cost which increases yields and attracts more investors again resulting in increased values.

We can’t predict what the chancellor is planning for the future or predict how the changes will affect things however we will always have to remain flexible to move with the changes and adapt to the changes

We at Brentwood lettings are always happy to help and give you our opinions however it remains the case that you must take financial advice for tax planning from the experts

REMAIN POSITIVE

Government Plans to Regulate Buy-to-Let Mortgages

Speaking to a Parliament Committee on Wednesday (21/10/2015) George Osborne said “The governor of the Bank and the FPC (Financial Policy Committee) have asked for additional powers over buy-to-let mortgages which weren’t included, and we have granted those powers”. He went on to say that yet has yet announced it “I’d better wait until we actually make the announcement, but (this will be) as soon as possible”.

The news George Osborne had decided on regulating commercial finance came as a shock as he previously rejected it and the Bank of England said the Government intended to consult on buy-to-let lending later in 2015, with ‘a view to building an in-depth evidence base on how the operation of the UK buy-to-let housing market may carry risks to financial stability’, it would seem the consultation never arrived.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), said: “The Government stated its intention earlier this year to hold a post-election consultation to assess the evidence for granting powers of direction over buy to let lending to the Financial Policy Committee (FPC). It was therefore very disappointing to hear the chancellor apparently jump the gun at yesterday’s treasury select committee. It suggests a stage of evidence-led policy making has been removed, and that the consultation may be limited to what those powers will be when – rather than if – they are granted.”

Individual lenders also spoke out about the announcement. Charles Haresnape, Aldermore Group managing director, said the lender welcomed any policy to improve the private rented sector but said it was important that any powers granted do not jeopardise the buy-to-let market.

“The private rented sector is a vital component of the UK housing market and policy levers must be used to support the sector in driving additional capacity,” he said, “It is important that the financial policy committee works closely with the sector and uses any powers sparingly and appropriately, and not unnecessarily remove any momentum from the private rented market.”

Steve Griffiths, head of sales and distribution at Kensington Mortgages said it will be interesting to see what powers the Bank of England is given when further details are announced later in the year.

“The rental sector is becoming increasingly important to the UK housing market and many people are staying in rented accommodation for much longer than we have seen historically,” he said, “The quality and variety of such accommodation has improved significantly following the growth of buy to let, and it is vital that these standards are maintained in the future. It would be short sighted to limit landlords’ ability to deliver quality rented accommodation when many people rely on this sector.”
In 2014, the BoE asked for the power to cap the size of landlords’ mortgages as a multiple of their expected rental income, similar to the loan-to-income cap it had imposed on residential mortgages.

The Buy to Let market is currently based around rental cover required is 125% at 6% notional rate, which means for a loan of £100k you will require £625 per month rent as a minimum.

It is yet to be seen; what increased rental calculations will be? how this will reduce supply of rented properties? and the effect it will have on rents charged by landlords.

The Bank of England has requested such powers as they see Buy to Let as a risk to the economy, the micro-management powers requested of amending the criteria of lenders deciding for both Landlord and Lender what risks they can take in there businesses is seen as the failure of government with “too big to fail” banking.

A finance ministry source said the details of the new powers remained subject to a consultation that was due to start before the end of the year.

This is the second shot across the bow of the landlords from the Chancellor of the Exchequer in recent months after plans for an unparalleled change to how business loans are treated. The chancellor says that landlords received mortgage interest relief, where Landlords view it as the Chancellor charging tax on revenue instead of profit – a scheme unseen in any other business sectors.

The majority of landlords put their faith in the Conservative Party in May believing Ed Miliband with his rent control and anti-landlord rhetoric being a risk to the private rented sector. So when the chancellor announced restrictions on the tax relief on buy to let mortgages, it came as a shock, with many feeling betrayed.

Other changes have also annoyed landlords with “retaliatory eviction” regulation ensuring a tenant can expand there tenancy above the term agreed by complaining to a council housing officer about a housing fault of an issue that they are not required to notify a landlord beforehand.

The introduction of Universal Credit which caused major concern with rent being the first benefit element to be reduced with Benefit Caps and restrictions on the Landlord being paid direct if the tenant is in arrears or vulnerable.

The new introduction of “right to rent” putting landlords as a element of the UK’s Border Force – student landlords feel under real pressure to ensure there tenants have a legal right to be at the property and then having to ensure the tenant keeps that legal right to reside or face financial penalties.

Upcoming Energy Performance Requirements above the current HHSRS making properties unrentable if they do not meet certain energy performance, a worry to many landlords that supply electric heating elements instead of gas.

Landlords should not be punished for running a business or making profits. With social housing in long-term decline and mortgages still out of reach for many, the private rented sector plays an invaluable role in housing the growing population.

Landlords need to stand up for their rights and the good of the industry by lobbying their local MPs to tell them the truth of how the Budget will hit them and their tenants and how Bank of England deciding if they can get a loan or not will affect the market.

M9 House Prices are Rising

Average House Prices for terraced houses in M9 have seen a 10% rise in the past 12 months. Data from Home.co.uk has shown that property availability in M9 is down 29% and prices are rising due to high demand.

Increasing investment in surrounding areas, the growth of the city centre and growing media attention in the area is having a knock on effect on local house prices.

There are also a number of new houses being built in M9 to combat the increasing demand for M9 property see here

We currently have a high demand for rental properties in this area, if you have a property in M9 or a surrounding are, call us today for a free rental valuation: 0161 681 3724

Are Your Agents Fee’s Misleading?

As of 27 May 2015, it became a legal requirement under the Consumer Rights Act for all agents to show their fees as VAT inclusive. This measure, I believe has been introduced to once again clamp down on those rogue agents out there who are hiding their fee’s and misleading their landlords.

I get a real bee in my bonnet about lettings agents fee’s. You may have read my previous posts on hidden fee’s, price hiking and unfair fee’s. I’m now on my hobby horse about misleading fee’s.

I think my anger around fee’s stems from a basic human quality of honesty and trust. The way I work and the way I run my business is in a very open, upfront and honest way. I can do this because i’m a small independant. I manage less than 1000 properties and the book stops at me. I don’t have shareholders to please and pay, I don’t have a board to answer to and I do what I do because I’m a landlord, a business owner and an employer. I’m not a tycoon, I’m not a millionaire and I don’t wear a suit.

I have been running Brentwood Lettings for almost 20 years, and I pride myself on the quality ad the value of service my agency offers to our landlords. We don’t, and have never, advertise prices exclusive of VAT, we don’t add commissions to our contractors rates, we don’t double dip fee’s from both the tenant and the landlord and we don’t overstate our costs.

It would be bad practise for me to point fingers directly at my local competition, but I know all of the above are happening on my doorstep, to landlords within my catchment area and they are happening week in week out and have been happening for years.

If I could get all the landlords in Manchester together in one room and have the opportunity to say one thing to them, just one thing, I wouldn’t self promote, I wouldn’t sell, I wouldn’t even tell them who I was, i’d simply ask “Why are you letting your agent rip you off?” and offer them my phone number.

 

We publish all of our fee’s so nobody is left in the dark and nobody is left wondering about charges.

Click Here to Download our fees for Let Only Services

Click here to Download Our Fees For Property Management

 

 

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Why Isn’t Your Agent Publishing Their Fees?

If you went to tesco’s and had to wait until you reached the checkout before knowing how much something cost, would you shop there? Would you trust tesco? Would you feel good about going back there? No No No?

hidden feesThen why are so many landlords dealing with agents who are not transparent about their fee’s? They tell you a fee, but don’t tell you its exclusive of VAT, or that it doesn’t cover this that and that or that there is an additional fee if you want this, or that once that fee is paid there is also x y and z to pay. NO!

I get a real bee in my bonnet about lettings agents fee’s. You may have read my previous posts on hidden fee’s, price hiking, unfair fee’s and misleading fee’s.

I think my anger around fee’s stems from a basic human quality of honesty and trust. The way I work and the way I run my business is in a very open, upfront and honest way. I can do this because i’m a small independant. I manage less than 1000 properties and the book stops at me. I don’t have shareholders to please and pay, I don’t have a board to answer to and I do what I do because I’m a landlord, a business owner and an employer. I’m not a tycoon, I’m not a millionaire and I don’t wear a suit. But I do run a good agency that looks after my clients and their properties very well.

Having run an agency for the best part of 20 years, I can see how it would, in the short term boost revenue for the agency. But taking a long term view and thinking like a business partner towards my clients, I wouldn’t want to work with someone who was being underhanded and would not place my trust in a business that was not being upfront and honest with me.

It could be because I’m northern, or because I’m working class or because I’m a landlord myself, but I believe anyone acting on behalf of your property should have your best interests in mind, and not the health of their bank balance. I don’t want to be ripped off and I want to be able to trust that my agent is working for me and not for themselves and their shareholders.

When selecting an agent in future Ask The Right Questions. You can’t compare agents on just their management fee’s (truth be told you can’t compare on just cost but that’s another post for another day), One agent may charge 15% the next 16% – whos the better agent? Nobody knows! Who’s offering the best value for money? Again, nobody knows; ask:

What do they charge for drawing up a tenancy agreement? What is their letting fee? What are the costs for an inventory? What do they charge for a gas safety certificate? What do they charge for an EPC certificate? What would they charge you to change a lightbulb? What would be the expected costs over the course of your entire first tenancy?

Don’t be afraid to ask the questions, do your due diligence and stop letting the big agents rip you off.

What Hidden Fee’s Are In Your Agreement?

As an independent agent, I’m very lucky to not be bound by big company practises and habits. I get to forge my own path and I get to sleep well at night knowing that my business runs in an open, upfront and ethical manner.

It’s disappointing that over the years the sneaky practice of charging an additional commission to contractors for passing work their way has become the norm. This is not only penalising all the sole traders and small businesses who rely upon agents for their livelihood, but it is also being wholly dishonest to those who have placed trust in their business, their clients- the landlords!

Property Eye ran an article related to the current news about Foxtons, it states that agents could be adding from 5%-20% on top of their contractors bills and passing these price hikes back to their landlords.

Having run an agency for the best part of 20 years, I can see how it would, in the short term boost revenue for the agency. But taking a long term view and thinking like a business partner towards my clients, I wouldn’t want to work with someone who was being underhanded and would not place my trust in a business that was not being upfront and honest with me.

It could be because I’m northern, or because I’m working class or because I’m a landlord myself, but I believe anyone acting on behalf of your property should have your best interests in mind, and not the health of their bank balance. I don’t want to be ripped off and I want to be able to trust that my agent is working for me and not for themselves and their shareholders.

hidden feesWhen selecting an agent in future Ask The Right Questions. You can’t compare agents on just their management fee’s (truth be told you can’t compare on just cost but that’s another post for another day), One agent may charge 15% the next 16% – whos the better agent? Nobody knows! Who’s offering the best value for money? Again, nobody knows; ask:

What do they charge for drawing up a tenancy agreement? What is their letting fee? What are the costs for an inventory? What do they charge for a gas safety certificate? What do they charge for an EPC certificate? What would they charge you to change a lightbulb? What would be the expected costs over the course of your entire first tenancy?

Don’t be afraid to ask the questions, do your due diligence and stop letting the big agents rip you off.

We publish all of our fee’s so nobody is left in the dark and nobody is left wondering about charges.

Click Here to Download our fees for Let Only Services

Click here to Download Our Fees For Property Management

I’m Mike Brown, the owner and managing director of Brentwood Lettings. I am a landlord, a property developer and generally someone who knows a thing or two about letting properties. I can always make myself available for a chat, feel free to call my office 0161 681 3724

 

June Auctions – 31 Radnor Street Gorton

tips

 

This months Edward Mellor Auction, really does have some hot property this month (sorry for the summer related pun). Radnor Street is a 2 bed terraced house in Gorton.

 

In my eyes the attractive thing about Gorton is the potential yield and the potential for longer term tenants. I’d expect this property to fetch around £50-55k and could easily achieve a rental income of £500pcm (almost 10% yield)

As an agent, I have lots of experience in letting properties in and around Gorton and would be happy to talk with you if you were looking at this property, or other properties around East or North Manchester. Please feel free to drop in to my offices on Moston Lane, Manchester for coffee and a chat, or call me on 0161 681 3724.

Look forward to speaking to you soon!
 
Regards 
 
Mike Brown

June Auctions – 477 Moston Lane, Moston.

tips

 

Edward Mellor Auctions Salford Auctions have this interesting property listed for 4th June. Being just down the road from my office, i’ve had my eye on this for a conversion into 2 x 2bedroom flats.

The market in Moston is currently saturated with tenants looking for 2 bedroom properties, and this would be a perfect investment to pick up a healthy yield.

Over the past couple of years it has been rare to see a decent 2 bed property in Moston sit empty for more than a month, and this property could be a good mid-long term investment in the hands of the right developer. I’ll be excited to watch how the bidding goes on this.

 

If you are looking to invest in Moston or anywhere in East & North Manchester  and would like any assistance, then please drop in to my offices on Moston Lane, Manchester for coffee and a chat, or call me on 0161 681 3724.
Look forward to speaking to you soon!
 
Regards 
 
Mike Brown
kenyon lane Moston Main image

kenyon lane

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Joan Street Moston Main image

Joan Street

M40

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Cross Lane Gorton Main image

Cross Lane

Brentwood Lettings are pleased to present this 2 Bedroom Terraced house located in the Gorton Area. The…

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Goodman Street Blackley Main image

Goodman Street

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Charlestown Road Moston Main image

Charlestown Road

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