Welcome to January's Newsletter!

Now that the chaos of Christmas is behind us, we're taking a look at how Swansea's performing nationally in terms of rents (spoiler: it's good news!), and thinking about where the next Swansea buy-to-let hotspot for 2019 is likely to be. 

For those of you who, like me, love looking at property online, the list of most expensive properties in Wales has been released (and a couple of those streets look familiar!). 

- Hannah, Managing Director

Over the past 2 years, we have been tracking Zoopla's data on rental values and stock availability. We have compiled the data to show how the rental market in Swansea has fluctuated over the past 12 months, compared with 2017.  

 

Nationally, Rightmove have reported that rent increases slowed in 2018, and the Deposit Protection Service (DPS) rental review concurs. 

 

There is some good news for Swansea, though; according to Rightmove, Swansea has the highest growth in rents from 2017 (tied with Newbury). The annual growth in rents for Wales as a whole was 1.42%; Swansea saw an increase of 8%. 

We use Zoopla for stats as we find they tend to have more stock, and are thus in a better position to offer us a more accurate snapshot of the rental market in Swansea. 

 

What the stats from the portals don't tell us is how student lets affect the market. In the last few weeks, we have seen an increasing number of student lets being marketed at the by-room cost rather than the total rental value (which may account for 5 bedroom properties only being worth &300-odd a month according to the stats).

 

Because Swansea has two universities, both with multiple campuses located in different areas, student lets are spread out, too, rather than being confined to one specific area. 

 

As McCartan specialise in sourcing professional tenants, we aren't so interested in the student market. 

 

 

 

 

 

Sources: Zoopla / Rightmove / Property Industry Eye

 

 

So now we have been able to take stock of 2018, what opportunities could 2019 bring?

Those of you who, like me, love looking at property online will be excited to hear that the most expensive streets in Wales in 2018 have been announced, with two streets in Swansea making an appearance in the top 10.

Complied by Lloyd’s Bank, the list reveals the most expensive street in Wales to be Llys Helyg Drive in Llandudno.



Homes on the plush street - known locally as Millionaires' Row - sold for an average of &1.24m in 2018, which is unsurprising given its stunning views and close proximity to the centre of the town.

Next on the list is St Jullian Street in the seaside town of Tenby, followed by Llandaff Place in Cardiff.

The most expensive street in Swansea - and sixth overall in Wales - was St Anne’s Close in Langland, Mumbles, where the average house price in 2018 was &835,000.

 

St Anne’s Close is situated in an enviable position; residents can easily walk down to the beach, or into Mumbles Village for a spot of shopping or lunch, or stay home and admire the stunning views over Langland Bay. For those who frequent Langland Brasserie, you’ll know the houses on this road as being the fancy ones you can see from their terrace!

 

 

The street is right on the coast, and offers stunning sea views across Swansea and Mumbles Bay. The houses here are a stone’s throw from the promenade, and not much further from an array of restaurants and boutique shops.

It’s easy to get from here into Swansea City Centre for work or transport beyond.

The Mumbles seafront development has been deemed a huge success. Its stunning coastal location combined with the possibility there will be further developments in the area seem to have investors lining up. 

The latest development of executive homes is almost complete. ‘Westwinds’, a collection of 4 contemporary homes overlooking Langland Bay are on the market with an impressive &2.1m price tag. Could these properties see a Swansea street topping the Most Expensive Streets list for 2019?

Whilst these properties would certainly not be an ideal BTL investment in Swansea, having properties in the immediate vicinity of our city centre hitting the headlines will surely attract attention. Articles will highlight what a fantastic location Swansea Bay is to live and work in, and will hopefully have a ripple effect throughout the Swansea property market.

Knowing the places that are popular for renters is key to understanding the buy-to-let market in Swansea. That is where McCartan Lettings can help; we have been analysing the Swansea market for over 10 years, and with our expert knowledge of our local area, we are in a prime position to help investors make the right decisions on where the best place is to buy to let in Swansea.


Source: Wales Online

 

Image Source: Wales Online

Related: Case Study - Uplands BTL Renovation / Planning for 2019 / Mumbles Names Best Place to Live in Wales / Step Forward for Kingsway Regeneration

The Deposit Protection Scheme (DPS) still have a backlog of dispute decisions to make. Though they won’t comment on how long it will take to catch up, we understand they are still over 6 weeks behind.

We reported on this back in November 2018 following a report by mortgage lender Nationwide that blamed landlords and agents for the 3-month wait some tenants face to get their deposits back. Closer inspection of the report by ARLA and Property Industry Eye found that disputes – and wrongful disputes – might be the real cause for delays.

In many cases, disputes arise over differing definitions of what constitutes “fair” wear and tear, and over apportionment.
Having a good understanding of the factors involved and the lifespan of the items in question can help reduce disputes. Click here to read our landlord guide to deposit deductions.

Despite what the news would have you believe, deposit deductions aren’t inevitable.

Tenants can refer to their inventory check in report and use it as a guide as to how the property should be returned.

Cleanliness is the only thing within a rental property that isn’t considered to have a lifespan, so making sure the property is as clean when you leave as when you arrived is key.

All of your possessions will need to have been removed, as well as any rubbish. If the property was let furnished or part-furnished, try to put everything back where it originally was (or at least in the same room it originally was).

If you’ve caused any damage during your tenancy, you’ll need to make good on it, and if you have any pets, you’ll need to ensure you have the carpets professionally cleaned.

Click here to read our tenant guide on avoiding deposit deductions. 

My buy-to-let deal of the month for January is a 3 bedroom mid-terrace house in Sandfields. It's being sold at auction with a guide price of &90,000. Click here to view the brochure. 

 

Sandfields is an area currently popular with students, but sandwiched as it is between the City Centre redevelopments and the growing (professional and family) interest in Uplands, it seems likely that the area will become more popular with professional tenants too.

 

And being just a stone's throw from Swansea Bay beach has got to be a draw - why would you live in a seaside town and not want to be near the sea?!

 

As discussed in my previous article on Sandfields, a well presented 2 or 3 bedroom house with a modern kitchen and bathroom could achieve &700pcm in the professional market. 

 

 

Auctions were once the domain of seasoned property developers and large corporations, but as property prices have been on the increase, more "regular" buyers have started attending them, too.

 

Here are my 5 top tips for buying property at auction:

 

1. The guide price is just that - a guide. Often, prices are set lower than the actual property value to create interest. Once excitement of the chase sets in, it's easy for the price to climb.

 

2. Start researching as soon as the auction catalogues come out. Published only a month before the auction, you're only a narrow window in which to do your research. Try looking up houses by postcode to see what they might actually be worth.

 

3. Get your finances in order before the auction. If you win a bid, you will be expected to put down the deposit on the same day, so make sure you're got the cash ready and easily accessible, and that you've instructed a solicitor to look over any legal documentation.

 

4. Don't bid over your budget. As you're investing in buy-to-let, it's important to remember its a  business venture. Set your limit, and don't let your love for a property keep you bidding when you know you're over that limit. 

 

5. Get your game face on. Auctions can be high pressure situations and if you attend a few, you may find yourself in a bidding war with a familiar face. Confidence and a little bravado can go a long way! 

 

 

Image Source: Astleys

 

Related: Tips for Buying at Auction / Planning Ahead for 2019

 

Across all property sizes and postcodes, the current average asking rent is &785pcm, which is down a little from December. 

 

 

See the tables below for breakdowns by property size.

 

 

	1 bed	2 bed	3 bed	4 bed	5 bed
Houses	&543	&640	&659	&826	&790
Flats	&540	&791	&826	&1045	&761
All	&541	&746	&703	&848	&789

Difference from December 2018

Number of Properties Available, January 2019