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2021 Rental Market Overview

This is a review of the 2021 Property Rental Market and factors that are likely to affect 2022.

The figures are taken from the latest Zoopla report published on the 9th February 2022.

Supply and Demand

Demand for rental properties still continues to outstrip supply, which, combined with the surge in property prices, means that rents are still rising. This Zoopla chart clearly demonstrates the stark contrast between supply and demand.

Average UK rents

The average UK rent rose by 8.3% in 2021. This means that rents across the UK is now £969pcm. The South West is £897 which is a 9.5% annual increase. Average rents are now £62pcm higher than at the start of the pandemic. However, there’s also a very strong upward trend in London, which will have affected the averages as you can see below:

The growth is still being driven by demand. However, the demand appears to be shifting back towards city centres, as employees start to go back to office working once more.

How do these rent increases affect Rent Affordability

This increase in rents has naturally had an impact on affordability, although interestingly they still remain close to the longer run averages. Over the past 10 years rent for a single earner has accounted for 36% of their earnings. In December 2021 this was 37%. This means that technically there is still the possibility that rental income could continue to grow before affordability becomes too stretched. Although there are pockets around the country created by an even greater supply and demand gap where its looking like this pain is already being felt, as we’re seeing here in West Cornwall.

Outside influencers on Rent Affordability

Being close to the top of the affordability scale, means that it might only take one or two other economic factors to tip the balance. So the rising fuel costs and interest rate rises, may be the tipping point. Its certainly going to be a challenging year for many households. With those on lower incomes and less ability to make economies elsewhere, struggling the most.

Therefore whilst demand continues to outstrip supply, it might be wise for current and future landlords to consider the overall affordability of the local market when setting their rental requirements. It might be worth reviewing your rental yield, should additional economic factors start to force down rental prices.

Rental Yeild Calculator

As well as understanding your rental yield based on current market rates, it would be wise to consider both higher and lower yields.

2022 Rental Market Outlook

The Zoopla analysis is that renters are more likely to stay put in 2022. We’re certainly seeing that trend here at CAM. This is a good thing for everyone. Landlords will have the security of continued rental revenues, with less void periods. Then less demand, means that rental prices will grow at a more realistic rate for tenants. The projection is for a UK growth of 4.5% and removing the London factor, 3.5% for new tenancies.

About the Author

Hi, I’m Deborah and I’m one of the directors of CAM Residential Lettings in Hayle and this blog is a bit of a hobby of mine.

I love all things to do with the UK property market (useful considering the industry I’m in!). My articles are mainly about the Penwith property market. However, from time to time I’ll give you a quick update about UK property market overall.

I have in the past also highlighted what I consider to be great local investment opportunities but these have been scarce for the past few months. I’m hopeful that I’ll be able to bring you some great opportunities in 2022.

Please feel free to call or pop in, if you’d like to discuss your property investment plans, or have questions about property rental legislation. 01736 755077 |info@camlettings.co.uk

Data Source: Zoopla published 9th February 2022

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Are Airbnb’s the Cause of the Cornish Housing Crisis??

airbnb

Headlines such as ‘landlords evicting tenants for Airbnb’s’, ‘Cornwall has 10,000 Airbnbs but only 69 homes available to rent’ and ‘greedy holiday home owners’ have jumped out at me from many news articles over the past few weeks.  So I thought I’d take a closer look to see if Airbnb’s are really the cause of the Cornish Housing Crisis.

Firstly, I can agree that from my perspective, its been impossible to walk down pretty much any street in Hayle, Penzance or St Ives without seeing the now all too familiar key lockbox and recycling boxes full of empty bottles.  This means that unless the property is owned by someone who constantly loses their keys and has a drink problem, this is a sure sign that it’s a holiday home!

What is an Airbnb?

Known in the industry as an FHL (Furnished Holiday Let) but increasingly knowing throughout middle England as an Airbnb (why the recent change, I’ve yet to fathom!).  For clarity, whether the property is a caravan on a holiday park, a bijou seaside apartment, or a luxury lodge overlooking the sea, they may be catering to different demographics but are offering the same thing – a holiday.  Like them or loath them, they have always and will always be a vital part of the Cornish economy.

Why have Airbnb’s become such a problem?

The impact of the pandemic has meant that this has been a bumper year for the FHL or Airbnb owners. As is always the case when any industry appears too good to be true, many scramble to jump on the bandwagon.

The rest of us look at the glossy pictures and the eye watering peak week prices and its hard not to feel envious.  This has made it relatively easy to single these business owners out as the cause of the current Cornish housing crisis.  But is this really the case?

Have Airbnb owners taken all our residential property stock?

Sadly, they do appear to have added to the problem. Cornwall has 1 per cent of England’s population and 17 per cent of its second homes. I and many others will struggle with figures like this. However, we also need to be mindful that second homes are just one element fuelling our current housing crisis.

Its also easy to forget that second home owners are by and large, one-man-band business owners, just like your local pub and high street shop.  Yet you don’t read in the press about a pub owner who’s invested their life savings into that business and works all the hours under the sun to give their guests a good experience, as being greedy.  So why is it ok to vilify FHL owners because they’ve invested their hard earned savings in that particular industry? The same has been happening to residential landlords for the past few years.  The rhetoric makes great click bait but is unfair on the individual business owner. 

I certainly don’t see any sign of greed and second home owners cannot be blamed for bad government business policies.

Yes, owners of second homes, who have absolutely no intention of letting out their property, yet still claim 100% business rates relief, need to be hit with heavy fines. Then this loophole needs to be closed.  Yes there needs to be a levelling up of the legislation foisted on residential landlords and that of FHL owners. But not to the point where hard working business owners, who’s businesses support the local community are driven out of either sector.

Don’t get me wrong, I’m not saying we should just allow this trend towards second homes in Cornwall to continue. There should not be second homes in an area where many struggle to secure their primary home. But as always it’s the symptom rather than the cause that’s getting all the press attention.

Holiday lets legislation changes

If we had an even-handed business taxation policy and sensible legislation that works for both landlords and FHL owners, these businesses would sit comfortably in our society. But the FHL sector has been under regulated and taxed for years. This has encouraged a disproportionate level of investment. Add to the mix, the massive underfunding in our social housing over the past 20 years and we now have a housing crisis that’s spiralling out of control.  Predictably when situations get this bad, the powers that be panic and take a sledgehammer to crack a nut.

This is exactly what’s about to happen with the FHL industry.  English, Welsh and Scottish governments are currently drafting plans to target all second home owners.

However, before anyone gets excited about this, lets stop to think about the impact of the legislation changes for a moment.

If, as is looking more likely by the day, all holiday let business owners will have to register (to name just one piece of legislation coming down the line). However, the Scottish government has proposed that all FHL owners will then have to re-apply every 3 years. This idea is also being considered by the Welsh and English governments. The business owners will also have to notify potential holidaymakers of this in advance. This addition to the legislation will meant that (a) their costs are going to increase and (b) it will add uncertainty for them and their guests.  Uncertainty isn’t good in any industry.

I agree with the registration idea. But having to re-apply every 3 years doesn’t feel very well thought out. The sledgehammer approach to legislate an industry drove many residential landlords sell up and I fear the same will happen here. This will have a knock-on effect on the local economy.  Pubs shops and restaurants will suffer too, as they all need one another to survive. 

So all I’m saying here is that we should be careful what we wish for. Knee jerk legislation is never a good idea.

Surely, Airbnb’s are raking it in, so they can absorb additional costs?

In fact mostly this is not the case. The FHL industry is not the cash cow its been made out to be.  Yes the peak week rental prices are high but these are for a maximum of 6 weeks a year.  What about the other 46 weeks? Most FHL’s will be empty for 3-4 months and will earn a fraction of what they’d get in the summer during the remaining 6 months.  For the majority, their net margin is on par with that of a residential landlord at around 5%.

This means that whilst an FHL is still a good investment (until the incoming legislation kicks in), it takes exceedingly hard graft to earn this. Its not easy money. If the hourly rates of the property owner is factored in, they’d be earning well below minimum wage in most cases. As with all industries, there are exceptions to this  – such as the luxury end of the market, or the sleeps 10+ types of properties but these are in the minority. 

The bottom line is that whilst Airbnb’s are a symptom of the Cornish housing crisis, they’re not the cause and the majority are just hard working local business who’ve spotted an earning opportunity.

If Airbnb’s aren’t the cause of the Cornish Housing Crisis, who or what is?

I agree that something urgently needs to be done to tackle the housing crisis. I’ve been banging on about this for months. And yes less ‘Airbnb’s would help.  However, what Cornwall desperately needs are more affordable houses for only locals to buy, better mortgage packages to make this possible and then a decent stock of social housing for those that can’t buy. 

The government also needs to backtrack on its decision to freeze Local Housing Allowance and cut Universal Credit. This risks pushing many households further into poverty, problem debt and potentially homelessness. 

We as individuals however, need to remember that hospitality (of which holiday properties form a large part) is a tough and often thankless industry. This year more than ever, many of us have needed and benefited from it.

So lets direct our anger and energy away from small, local businesses. We need to challenge the housing and business policy decision makers who’ve allowed this crisis to happen: Our MP’s Cornwall Council and ultimately, the government.

Have your say

Do you think Airbnb’s are the Cause of the Cornish Housing Crisis, or like me do you think that whilst we need less they’re not the real problem? Please let me know your thoughts. You can comment below or by all means contact me directly by email.

About the Author

Hi, I’m Deborah from CAM Residential Lettings in Hayle. I love writing about the local property market – the good, the bad and the ugly! I also from time to time, write blogs about the local towns we cover. My most recent has been about Hayle but watch this space for future articles on Penzance, St Ives, Camborne and Carbis Bay too. There will always be a property connection in there somewhere.

Please feel free to suggest topics you’d like me to research.

If you’re a second home owner and are considering the pro’s and con’s of being a residential landlord, please contact myself or John for an informal and no obligation chat. here’s our office contact details:

01736 755077

20 Fore Street, Hayle, TR27 4DY

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The G7’s Effect on West Cornwall’s Housing Crisis

g7 Leaders

This week I had every intention of writing a simple article, comparing house prices in Hayle, Penzance and St Ives. But then my brain got hijacked yet again by West Cornwall’s housing crisis.

Mirror Image of warship in St Ives Bay for the G7 Summit

The world’s press shines a spotlight on West Cornwall

I, like the majority of the locals have loved the spectacle that the G7 has brought us. My son goes to St Ives School and the drive in has never been so exciting. The area has been a hive of activity for weeks, as West Cornwall prepared itself for the arrival of 10 of the major world leaders.

I hoped this stunning location would sprinkle a little bit of its fairy dust over these decision makers and it would help to bring about changes in the way the world tackles climate change and poverty.
I was even prepared to overlook the irony of the rather large motorcades and the air miles travelled by these leaders, if these meetings deliver real change.

But, I had a nagging feeling that with the area suddenly being thrust into the spotlight of the world stage, this might fuel the already overheated local property market.

Mount Recyclemore created to get the attention of the G7 world leaders when they were in Cornwall

Rightmove searches for Carbis Bay increased by 103%

Then on Friday I read in one of our regular trade bulletins:

The number of people searching for property in Carbis Bay has more than doubled in a day, as home-hunters check out the area currently on the global stage, according to Rightmove.
Buyer searches for Carbis Bay were up 103% on Wednesday 9th June compared with the previous day.
Cornwall was actually the most searched for place on the property portal last month, as coastal destinations grow in popularity ahead of the summer period.
Rightmove’s spokesperson Tim Bannister said: “All eyes are on Carbis Bay right now, and with supply so limited, coupled with the price premium for the county and the fast pace of sales, it’s only a lucky few who will be able to move there, but thousands of others are checking out what’s on offer

Whilst not surprising, this is worrying none the less. Our database of people looking for properties isn’t going down. I also know from speaking with estate agents in the area, that there’s still a huge shortage of properties that are coming on the market. This means that any new listings often go for more than the asking price.

Early in the G7 weekend Mr Johnson stated that £65m was going to Penzance, St Ives and Camborne for local projects. This ‘New Investment’ will be going towards footpaths, cycle paths, theatres, sports clubs and historic buildings.

Whilst this is a lovely gesture, it won’t help the local people who have nowhere to live. What a difference it would make to so many more locals families if the £65m was used for a social housing initiative in the area!

Cornwall Council Missing the point

On top of all this, Cornwall Council sent out a survey for locals titled ‘Lets Talk Homes’. They go on to explain that they are starting to review their housing strategy for Cornwall and would like locals to have their say. ‘Fantastic’ I thought. Then I read the rather bizarre questions that appear to have no comprehension of the Cornish housing crisis.

I appreciate that this is the start of their planning process but until the core problems in the local housing market are addressed, all their ‘blue sky’ ideas, meetings and strategies will be a complete waste of time and money. Here’s the link to their questionnaire. I urge as many locals as possible to complete it with factual, real life problems and what we really need them to focus on.

A very wise boss of mine once said ‘I don’t want you to come to me with problems, come to me with solutions to the problem’.

For what its worth, here are what I believe are the problems in the West Cornwall Housing market and my solutions to them?

Problem 1 – Not enough council/social housing

There are and always will be people in our community who for a variety of reasons will never be able to buy their own home. They are the long-term renters and are often some of the most vulnerable in society. They should not be in private rented properties and they should never have to experience the indignity of being made homeless because a landlord wants or needs to sell their home.

Solution: There needs to be a social house building strategy for the whole of Cornwall. This is in my mind is the single biggest issue that must be addressed. Whilst the other solutions I mention below will help, its this strategy that would have the greatest impact.

Cost is a red herring

Yes there would need to be initial funds to build, but housing stock has a value and is a growing asset. They could borrow against these assets and even sell off council homes to tenants in the future if they needed to raise funds. As long as there are safeguards in place, similar to some of the house building initiatives for locals there are around. And importantly as long as the money made is re-invested in more housing and not squandered as was done in the 80’s.
The other benefit of council owned properties is that they would be in control of rental costs and not be so affected by market changes, as we’re seeing now.

Problem 2 – house prices in West Cornwall being over 8x the local average wage

There are a few great initiatives, where houses are built and sold specifically to locals. The prices are capped and there’s caveats to stop them being profited on in the future. These are perfect for people who want to be sure they have a home for life in the area they’ve grown up in or have lived in for many years and have no intention of ever leaving.

There are a lot of working tenants who can afford over £1,000 a month in rent but can’t buy a home. These are the very people who should be able to buy one of these homes but there just aren’t enough to go round.

Solution: These housing initiatives are great and we just need far more of them. They also need to be given priority to build over the large, overpriced house builders.

Problem 3 – Mortgages have become near impossible to secure if you’re self employed

How is it fair to expect a self employed person to have a minimum of 2 years of accounts before they can even apply for a mortgage. Yet an employee can have a job for 3 months and be able to secure a mortgage and then be out of a job in month 4? Most self-employed have savings because they know to cover themselves for lean periods and they often have more than one income stream too.

Solution: Mortgage companies should look at a person’s income, expenditure and savings over a year (self employed and employed). This will give a far better idea as to an individuals risk factor and their true affordability level.

Problem 4 – Too many tax breaks and not enough legislation around the holiday letting market.

I have nothing against hard working holiday let businesses, but I do have a problem with them being disproportionately more tax efficient than a residential let. Especially when you think that residential landlords are putting a roof over peoples’ heads and holiday lets are a luxury. We need both in Cornwall but there should never be holiday lets to the detriment of people having a home.

On top of this its also too easy to buy a holiday home and get all the tax breaks of a holiday let. As an example, they can be exempt from paying business rates, by stating they intend to let their property out for a certain number of days a year. They don’t actually even have to do so, they just need to show they’ve tried!

Solution: Lets even up the legislation across all second homes and make the rules around being entitled to the business rates discount much stricter.

Where will that leave the private rental market?

Have I talked myself and landlords out of a business?!
Not at all. We have too many of the wrong people clogging up the private rentals market. By addressing the issues above, this market is then back to doing what it does best. Private rented properties will once again support the more transient type of renter who needs a property for 1-5 years.

I appreciate all this is easy to say and far harder in practice to implement. But the Cornish Housing Crisis can’t continue to be kicked down the road. It needs addressing now before the county loses all its skilled workforce and becomes one big retirement, or second home destination.

Do you have any solutions that I’ve missed? Please let us know. You’re welcome to comment below, or contact us directly.

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The Housing Crisis in West Cornwall

Housing crisis West Cornwall

10 days ago, I posted a quick article on our business Facebook page about the stamp duty holiday and how in my opinion its fuelled the housing crisis in West Cornwall. I had no idea that this little article would make such big waves.

So here it is – A Housing Crisis in West Cornwall

The Stamp Duty Holiday

The upside of the stamp duty holiday is that our economy has been given a quick adrenaline shot in the arm. Just about every popular tourist area of the country, especially here in West Cornwall, has seen a stampede of potential house buyers.

The downside is that a lot of these properties are going to second home owners and with the demand massively outstripping supply, prices have gone through the roof.

The effect on the Hayle rental market

This means that there’s now even less residential rental properties on the market than ever. For every 2 bedroom terrace house in Hayle we advertise, we get around 100 enquiries in 24/48 hours.

Second Homes and Holiday Lets Property Owners

Don’t get me wrong, I’m not criticising the second home buyers. Let’s be honest, most of us would do the same if we had the money. Its not their fault and in a lot of ways these cash rich buyers help keep a lot of smaller local businesses afloat.

What we need now to reduce the housing crisis in West Cornwall

But we desperately need more affordable housing stock for locals. Probably with caveats for resale to ensure the properties stay in local hands and stays affordable.

And finally…….

I’ve been thinking about this situation more since my article and to me there are actually three things that need to change before we can begin address this housing crisis:

  1. Lots of genuinely affordable housing stock for locals to buy. And I mean affordable. A slight discount off a £300k house is not going to work in West Cornwall, especially considering most people here are earning on, or just above the minimum wage.
  2. Many many more Council Houses/Social Housing. Cornwall is one of the poorest counties in the country and a huge swathe of the population will never be able to buy their own home but they should still be afforded the dignity of a forever home.
  3. A hefty tax on second homes that are bought for personal use and properties bought as a holiday lets. I know this one will be contentious, as holiday lets are needed. After all we’re a county that heavily relies on tourism, so I’m not suggesting biting off the hand that feeds. But the situation has got out of hand and until some cold water is thrown on this particular fire, the housing crisis in West Cornwall will only get worse.

What are your thoughts? Please feel free to comment below or contact us directly: 01736 755077

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The Pandemic impact on the West Cornwall Property Market

Working from home

Lifestyle changes

The pandemic has affected all our lives. However, the changes to the way everyone has had to live means that the pandemic has also had a huge impact on the West Cornwall property market.

Because businesses have had to adapt to three lockdowns and social distancing, this means its now easier than ever to work from home. With home being wherever you want. Many property owners living in landlocked urban areas, have then started to wonder whether they can live somewhere beautiful, like Cornwall. This combined with the stamp duty holiday, has meant that demand for properties in West Cornwall has soared since the autumn of 2020. This in turn has created the inevitable price rises, as demand far outstrips supply.

Is the Pandemic impact on the West Cornwall property market going to last?

Who knows if this trend will continue. Cornwall, especially the deepest darkest West, is not for everyone. After all, ‘dreckly’ isn’t just a word, it’s a way of life down here. Its certainly not a shoppers paradise, thankfully! And it rains – a lot. You need to love outdoor life, in all weathers and making your own entertainment.

This means that there may be some bargains in a couple of years’ time. Some People may realise that they’ve bought in haste and that whilst Cornwall is great for a holiday, its not somewhere they want to live. This will be especially true if they need an income.

For those of us that still have the battle wounds from the 15% interest rates and price crash of the early 90’s, we’re probably more cautious and see this as a bubble that’s going to burst. But I for one have been wrong before, so who knows what the future of the West Cornwall property market will be. Oh for that crystal ball!

Coming next

Over the next few articles I’ll be taking a snapshot view of what you can buy at key price points in St Ives, Hayle and Penzance. Its unlikely at the moment but I may unearth the occasional bargain too. So watch this space.

Get in touch

I’d love to hear your thoughts on the West Cornwall property market. What do you think will happen in the next couple of years. Please comment below or drop me an email.

If you’re considering becoming a landlord or need advice about the rental property market in West Cornwall, please either Contact Deborah or John at CAM Residential Lettings in Hayle or take a look at our FAQ page. Or why not give us a call on: 01736 755077

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Hayle’s top 12 most affordable streets in 2021 – Numbers 10-12

Cross Street Hayle

Here we are finally at streets 10 to 12 in round up of Hayle’s top 12 most affordable streets in 2021. We’re still below £175,000!

10th Most Affordable Street In Hayle

Bowling Green Court – TR27 4RP

There are 25 properties in Bowling Green Court, with the average price being £171,692 in March 2021. This is a rise of 4.23% over the past 12 months.

The most recent property sale in the 4RP postcode was a 3 bedroom, end of terrace house. It sold for for £186,000 in November 2020. The most expensive property that has sold in Bowling Green Court was a terrace house which sold in 2019 for £238,000

Bowling Green Court, Hayle

Bowling Green Court, is tucked out of the way from busy roads, making it great if you have young children or pets. Its also a few steps from both Bodriggy Surgery and Hayle Academy. The properties in this road comprise mainly of 2 and 3 bedroom terrace and semi detached houses, with reasonable sized, enclosed gardens.

11th Most Affordable Street in Hayle

Cross Street- TR27 4LW

Cross street, is an older Hayle street comprising of 15 properties. Properties in this postcode are currently valued between £118,000 and £209,000 with the estimated average market price being £172,205. This is a rise of 4.24% in the past 12 months. 

Cross Street, Hayle

Cross Street is just a few steps from the historic Cornish Arms and Copperhouse Pool in a popular area of Hayle. Its also around a 5 minute walk to Hayle Lido and a 10 minute walk to Hayle beach.

The most recent sale was a 2 bedroom terrace house which sold for £140,000 in March 2020. The most expensive property sold in this street was in 2015 when a 3 bedroom terrace house sold for £178,000.

Finally number 12 of my roundup of Hayle’s top 12 most affordable streets

Pools Court – TR27 4NS

There are a total of 45 properties in Pools Court. Properties in this postcode are currently valued between £150,000 and £198,000, with the estimated average market price being £173,031. This is a rise of 4.23% in the past 12 months according to the latest Zoopla estimates.

Here are typical Pools Court properties

Pools Court is predominantly 2 or 3 bedroom terrace houses.

The most recent house sale in this road was for £157,000 in August 2020. The Zoopla estimate of the same property now being worth £163,000.

Of the 45 properties, 14 have sold in the past 10 years. The most expensive being a 3 bedroom, semi detached house, which was sold for £187,000 in 2020

Hayle’s top 12 most affordable streets in 2021 – Summary

So there you have it, my roundup of Hayle’s top 12 most affordable streets. I’ve skipped a few of the smaller streets, or ones adjacent to or on the same estate as others I’ve listed, as to give you a more varied selection. There are actually 38 streets in Hayle with properties valued at below £175,000 as of April 2021.

Whilst we’re a rental agency, we’d far rather see more Hayle people be able to buy. For every 1 house we advertise to rent, we receive around 100 enquiries, so there just aren’t enough rental properties to go round.

In addition, rents are now proportionately higher in Hayle than buying the same property on a 25 year mortgage. As an example a 2 bedroom terrace house valued at £165,000 with a 5% deposit of £8,300, over 25 years would be around £695 pcm. The rent for the same property would be around £750 pcm. So get on that ladder if you possibly can.

Comments and Contact Details

Please feel free to comment below, or contact me with any questions relating to the Hayle, Penzance or St Ives property markets.

If you are or are considering becoming a residential landlord, please contact myself Deborah or John at CAM Residential Lettings in Hayle for details of how we can help you.

*based on TR27 4 postcodes only.  I’ll cover the villages in separate articles, because they’re all quite unique in themselves.

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7 to 9 of the 12 most affordable streets in Hayle

Chapel Lane properties

Please read on to find out what are numbers 7 to 9 of the top 12 most affordable streets in Hayle.

7th Most Affordable Street In Hayle

Bodriggy Crescent – TR27 4NN

There are 35 properties in Bodriggy Crescent. The average price for property in Bodriggy Crescent stood at £163,892 in March 2021. This is a fall of 1.26% in the last three months (since December 2020) and rise of 0.76% since 12 months ago. In terms of property types, flats in Bodriggy Crescent are estimated to be an average of £228,073 and terraced houses £232,623. This is according to the current Zoopla estimates.

The most recent property sale in the 4NN postcode was a Terrace house which sold for for £210,000 in January 2019.

8th Most Affordable Street in Hayle

Harveys Way – TR27 4PE and 4PF

There are 94 properties in Harveys Way. The estimated average market price for this road is £166,217.  Harveys Way properties are mainly 2 and 3 bedroom terrace houses.

Harveys Way, Hayle

The most expensive property sold in this street was in 2016 when a 3 bedroom end terrace house sold for for £165,000.

Harveys Way is a perfect location if you need to be close to Hayle academy and the Bodriggy Surgery. Both are just a few steps away. Its also very close to the popular Highlines Fish and Chip shop – always important to know!

9th Most Affordable Street Hayle

Chapel Lane – TR27 4LS

There are 23 properties in Chapel Lane. The average price for property in this road stood at £169,006 in March 2021. This is a fall of 1.26% in the last three months (since December 2020) and rise of 0.76% since 12 months ago. This is according to the latest Zoopla estimates.

Here’s a typical Chapel Lane property

Chapel Lane is predominantly 2 or 3 terrace houses. The most recent house sale in this road was for £157,000 in February 2020.

In Summary

So I’ve now reviewed 9 streets in Hayle where property prices are still well below the national average. In fact, we’ve not even hit £180,000 yet. Which means that Hayle properties are still very affordable for a couple, each on around £25,000 salary.

The problems for buyers is clearly more to do with the lack of property stock and the high deposits required by mortgage lenders.

Hopefully the recent budget initiative, with supported lower deposits will enable more people to get onto the property ladder once more.

Hayle, Penzance and St Ives Property Market – Brief Update

Here’s a brief overview of the number of available properties and both the highest and lowest property prices in Hayle, Penzance and St Ives.

I’ve been able to find 39 properties in Hayle, 99 in St Ives and 80 in Penzance.

The Hayle sale prices range from £135,000 for a 2 bedroom apartment in a period building. The highest price of a property for sale in Hayle is £695,000. This is for a 4 bedroom detached house with views of the estuary.

In Penzance the lowest priced property is 95,000 for a 1 bedroom converted flat in a period property. The other end of the scale is an Edwardian Manor with stunning views across Mounts Bay at to £945,000

St Ives and Carbis bay property prices currently start at £150,000 for a 1 bedroom apartment. The highest prices property I’ve found is a contemporary 5 bedroomed detached house. This property also boasts outstanding views across St Ives Bay and is on the market for £1.2m.

In my next article I’ll drill down further into these prices and see if I can route out any bargains for you.

Comments and Contact Details

Please feel free to comment below, or contact me with any questions relating to the Hayle, Penzance or St Ives property markets.

If you are or are considering becoming a residential landlord, please contact myself Deborah or John at CAM Residential Lettings in Hayle for details of how we can help you.

*based on TR27 4 postcodes only.  I’ll cover the villages in separate articles, because they’re all quite unique in themselves.

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The Latest Property Market Trends Update

Zoopla property market

It’s All About Supply And Demand

Zoopla’s latest report for the UK property Market shows the demand for homes have rebounded since the summer. However, this third lockdown appears to be stalling new listings.  This means that there’s now an even wider gap between UK property supply and demand.

UK Property Market – Supply and Demand

There’s been +13% greater demand for homes in the first 2 weeks of 2021 and an 8% increase in sales compared to the same 2 weeks in 2020. 

However, this third lockdown appears to be putting potential sellers off from listing their home. This means that there are -6% less properties on the market than there were this time last year.

UK Property Prices + 4.3%

This gap in supply and demand means that the growth in house prices is now the highest since April 2017 at +4.3%. The average house price in the UK now stands at £223,700.

What to expect in Quarter 2?

The stamp duty holiday has clearly been a major factor in the current high demand.  So it will be interesting to see if this trend continues as the March deadline looms. 

There is a lot of pressure on the government to extend the stamp duty holiday. The hope is that its extended long enough for the sales agreed in 2020 to have the chance to complete.  However, this would be best case scenario. Its unlikely the government will extend the stamp duty holiday by more than a few weeks. 

The signs are that for quarter 2 there will be a redress in the balance of UK property supply and demand. This means that its likely to be a period of lower growth and maybe a slight reduction in house prices.

This is a quick overview of the UK property market latest trends. In the next few days I’ll drill down further, to see if and how this might affect the Hayle area more specifically.

About the Author

Hi, I’m Deborah and I’m one of the directors of CAM Residential Lettings in Hayle and this blog is a bit of a hobby of mine.

I love all things to do with the UK property market (useful considering the industry I’m in!). My articles are mainly about Hayle, Penzance and St Ives. However, from time to time I’ll give you a quick update about UK property market overall and I’ll also highlight what in my view, are great local investment opportunities.

So please subscribe if you’d like to be kept up to date with the local property market.

You can contact me through this blog site: Please Contact Us Or directly at CAM Properties: 01736 755077 |info@camlettings.co.uk

Source: December 2020  – Zoopla index, published 27th January 2021

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4 to 6 of the top 12 most affordable streets in Hayle

Beatrice Terrace Hayle

Please read on to find out what are numbers 4 to 6 of the top 12 most affordable streets in Hayle ….

4th Most Affordable Street In Hayle

Higher Church Street – TR27 4LR

There are 24 properties in this Street, with the majority being 2 and 3 bedroom terrace houses.

A typical Higher Church Street property

The estimated average market price for properties in Higher Church Street is £161,100. The most recent property sale was in 2017 for a 3 bedroom terrace house which sold for £177,500.    Just 4 properties have been sold over the past 10 years and the most expensive was for £177,500.

Higher Church Street living room
Higher Church Street Gardens

As you’ll see from the pictures above, higher church street properties tend to have well-proportioned rooms, with large gardens, making them excellent for small families and rental investors.

5th Most Affordable Street

Chy Kensa Close – TR27 4RR

Chy Kensa Houses

The estimated average market price for this close is £163,000.  Chy Kensa is a small cul de sac with 20 properties of mainly 2 and 3 bedroom houses. The latest sale was in December 2019 for £142,000 and the most expensive sale was for £172,000.

A Chy Kensa Living room
A Chy Kensa Kitchen

Above you’ll see a couple of pictures of a 2 bedroom Chy Kensa property that was sold in 2019 for £150,000.

Properties in Chy Kensa Close have double glazing and gas central heating, which makes them a popular choice for first time buyers, or anyone who doesn’t want costly renovations. They would also be an interesting option for an investor looking for a low maintenance rental property.

6th Most Affordable Street

Beatrice Terrace – TR27 4ED

Beatrice Terrace has 24 properties, which are all 3 and 4 bedroom Victorian bay fronted terrace houses, overlooking Hayle park. The latest sale where stats are available was in 2018, and the property sold for £175,500. The most expensive property to sell in Beatrice Terrace in the past few years was for £200,000. 

Here’s a couple of photos of a typical Beatrice Terrace property.

A garden in Beatrice Terrace
The views from Beatrice Terrace over Hayle Park

The reason such large period properties are at the lower end of Hayle property prices, is that some (although not all) have a varying degree of mundic, which means that they often need to be cash purchases only.

Properties in Beatice Terrace would be good for property investors/developers and because of their size, they would also convert well to flats.

Future articles

I was hoping to show you some great bargains in these three streets for sale but unfortunately there are none available currently. However, please keep any eye on this site for any property investment opportunities I highlight in the future.

Next week I’ll be reviewing numbers 7-9 of my top twelve most affordable streets in Hayle.

Comments and Contact Details

Please feel free to comment below, or contact me with any questions relating to the Hayle, Penzance or St Ives property markets.

If you are or are considering becoming a residential landlord, please contact myself Deborah or John at CAM Residential Lettings in Hayle for details of how we can help you.

*based on TR27 4 postcodes only.  I’ll cover the villages in separate articles, because they’re all quite unique in themselves.

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1 to 3 of the top 12 most affordable streets in Hayle

Hayle Property

If you are, or would like to be a Hayle property owner and want to know the top 12 most affordable streets in Hayle* then please read on….

Hayle has had many years of being overshadowed by St Ives, its more glitzy cousin. However, the last few years have seen a renaissance of the town, which means that Hayle is becoming a sought after place to live in once more.

But that doesn’t mean there aren’t some great streets and areas in Hayle that are still very affordable. So over the coming weeks I’ll be reviewing the 12 most affordable streets in Hayle.

Today I’ll give you an overview of the first 3……

Number 1 in my review of the 12 most affordable streets in Hayle

Foundry-Square, Hayle
Foundry Square, Hayle

Foundry Square

There are 60 properties in Foundry Square with an average property value of £122,300. The most recent sale was for £124,000. Over the past 3 years the lowest price has been £95,000 and the highest has been £124,950. Its an area that’s predominately flats, which is why the average prices are lower here.

The building above is a period ll listed building and the flats are quirky and spacious, with period features. This means they’re sought after and would be well worth investigating when the next one comes on the market.

I love Foundry Square because its close to a great choice of shops and cafes. This includes the Old Foundry, which boasts an eclectic mix of quirky independent shops, making it a perfect place for browsing. Foundry Square is also home to the White Hart Hotel, which is an historic hotel. It was built to support the many travelling engineers during the industrial revolution.

Number 2 in my review of the 12 most affordable streets in Hayle

Market Square, Hayle

Market Square

There are 13 properties that fall under the Market Square postcode of 4BN. The average value of properties here is currently £137,000. There have been just 6 sales in the past 10 years and the most recent sale was for £127,500 in March 2020.

Market Square is at the Copperhouse side of town, which makes it perfect for getting onto the A30 quickly.

There’s currently a 1 bedroom flat for sale in Market Square, that’s being sold by Marshalls with an advertised price of £117,500. This flat would be a great first time home. It would achieve a rental yield of between 5 and 6%, so would also make an ideal buy to let investment.

Here’s the link to the advert for further details: https://www.marshallspz.co.uk/property-for-sale/hayle/tr27-4bn/1677593

I love this area for its interesting shops, most notably, Down The Line Surf Shop. Nearby is Mr B’s Ice-Cream Parlour, which has just moved from Market square to their new larger premises over the road in Fore Street and just a few steps away is the rather fabulous Chandlers Plaice fish and chips shop.

Number 3 in my review of the 12 most affordable streets in Hayle

Sea Lane, Hayle

Sea Lane

This has 63 properties with an average value of £158,000.

In terms of property types, flats in Sea Lane sold for an average of £138,633 and terraced houses for £171,446. The latest property sale was for £180,000.

This road is a mix of property types. It has small, 1 bedroom flats, well proportioned, ex council houses and a few large period properties.

Before I talk about what I like about this road, I thought you might be interested in seeing what’s recently sold.

Here is a 2 bedroom maisonette in the Malt House area of Sea Lane. This was being marketed for £130,000. These are popular properties, as they have good sized living space and low maintenance terraces, with fabulous views towards the estuary.

Sea Lane also has larger family homes like this 5 bedroom house. It sold in May 2020 for £400,000

This road is a good all-rounder. The flats are perfect for first time buyers, with the larger houses and the close proximity to the senior school make it a good location for families.


I hope this little round up has been of interest. I’d love to hear your views. So feel free to comment below or contact me directly.

Don’t forget to keep an eye out for my next blog where I’ll be reviewing numbers 4-6 of my top twelve most affordable streets in Hayle.

I’m a director of CAM Residential Lettings in Hayle. All my reviews are my personal observations and based on my love and knowledge of our local towns of Hayle, Penzance and St Ives. If I spot a bargain, or fabulous investment opportunity, I’ll be mentioning it on this blog site, regardless of who’s marketing it.

*This article is for TR27 4 postcodes only. I’ll cover the villages in separate articles, as they’re all quite unique in themselves.

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Photos from my May lockdown walk around Hayle

May 2020 lockdown walk

I took these photos during my May lockdown walk around Hayle. There’s so much history and character in the town but its easy to drive by and miss it all, so it was great to have the time to appreciate just how lovely Hayle is.

The first part of my walk was from Fore Street to Hayle Terrace, taking in the lovely views over the estuary and Copperhouse Pool. I then continued on past Hayle library, with its very pretty reading garden and flower boat. Then past the rather imposing ‘village hall’ built by the Cornish journalist and philanthropist John Passmore Edwards.

I particularly love the corner of Hayle Terrace, where the brightly coloured terrace houses meet the stately St Elwyns church.

I finshed the first leg of my journey on the bridge heading towards North Quay.

I’ll post the second leg of my little walk in a few days time.

There’s so much history in Hayle that just one whistle stop tour doesn’t do it justice. If you’d like more details about Hayle’s interesting history, then please visit the fabulous Hayle Heritage Centre (opposite Asda)

If you’re a landlord interested in investing in this historic Cornish town, then please let us know. We don’t sell properties. This means that we’ll give you an impartial opinion based on what areas of the town and types of properties are the ones that rent out easiest and for the longest.

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Finding Investment Opportunities in Hayle and Penzance

Investment opportunities in Hayle and Penzance

A landlord asked me recently if I knew of any good property investment opportunities in Hayle and Penzance, as they couldn’t find anything on Rightmove.


My first suggestion was ‘don’t rely on Rightmove to find those hidden gems’


For many years estate agents had no choice but to use them but now with so many other cheaper alternatives out there and the growth of social media, they don’t need to. Rightmove are eye wateringly expensive and most independent agents just can’t afford their fees anymore. Nor do they need them to sell houses fast, if not faster than some of the larger chains.


So how can you find good property investment opportunities in Hayle and Penzance?


Your first job is to find all the places estate agents advertise. You’ll be amazed at how many agents there are, that you may not have even heard of. A lot of the independent agents don’t have the budgets of the larger chains, so have to get creative with their marketing and advertising. Its these guys you really need to route out, they’ll often know the local market to a granular level and will be a font of useful information.


Where should I look to find all my local estate agents and where they’re advertising?


Google or go onto Yell.com and type in ‘estate agents in Hayle’, or ‘estate agents in Penzance’. Or google ‘properties for sale in Hayle’, or ‘properties for sale in Penzance’. Drive around the town and look for ‘for sale boards’. Check out the local newspapers, including the free ones but remember that print advertising is quite expensive, so not all agents advertise all their properties. Also and often, by the time a paper has gone to print, the property will have been sold anyway. Other places to look are Facebook marketplace, Gumtree, Zoopla and The House Shop.


Who, why and how you should register with estate agents

Once you’ve found all the estate agents in either Hayle or Penzance, register with them. But don’t just sign up to their mailing list on a faceless form. Call and have a proper chat and when this pandemic is over, go and see them. Explain what you’re looking for and be open about your circumstances and budget.


Often, like us letting agents, an estate agent will know of a property that’s coming up at least a couple of weeks before they’re in a position to start advertising it. The pro-active ones will use this time to call any potential buyers on their books. This is how the best properties go so quickly. And when I say ‘best’, I don’t mean the perfectly manicured show homes that are a good 5% over the market price because the owner thinks their purple feature wall will add £10k to the value. Your gold dust opportunities are the raggedy round the edges, reduced accordingly to sell quickly types. These, for a property investor are gold dust.


What else should you do before you start investing in the property market?


Whether you are considering buy to let or property development, you’ll almost certainly need good DIY skills or a team of tradesmen you can call on that can turn a property around quickly. Again, this is where getting to know your local estate agents will really help.

Finally make sure you understand all the latest legislation require and potential tax implications for the sort of investment you intend to make.


Here are a couple of investment opportunities in Hayle and Penzance to whet your appetite

investment opportunities in Hayle and Penzance - Malt House

This great little one bedroom flat in a popular area of Hayle, is on with Berwicks. They’re an Independent estate agent and if you’d only been looking on Rightmove, you’d have missed them and this property.

This flat would be a fabulous buy to let opportunity. It would rent out for around £550 pcm, giving you a rental yield of 5.6%.

This 2 bedroom Penzance terrace house has just gone under offer and is on with Whitlocks. Again, if you’d been relying on Rightmove, you’d have missed it!

investment opportunities in Hayle and Penzance - 2 bed terrace house in Penzance

This might make sense either as a development project, or buy to let and really comes down to how good you are at negotiation. Plus how quickly and cost effectively you could turn it around as an investment. Renovated 2 bedroom terrace houses similar to this one in Penzance are now around £165,000-£175,000.
From a buy to let perspective it would achieve around £750 pcm giving you a 6.4% yield. Although there would be additional costs to get it to a rental standard, so this would also need to be factored in.


If you want to investigate whether a buy to let option would work for you in Hayle or Penzance, then please contact us, we’ll be more than happy to have a chat with you.

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Is a 2 or 3 bedroom terrace house in Hayle a better investment?

which house is a better investment

One of our landlords asked if they should buy a 2 or a 3 bed terrace house in Hayle to rent out to tenants. The first question I asked them was what are they looking for from the investment – capital growth in the property or a great yield?

By answering this question will help you figure out which properties you should buy.

Terrace House Prices in Hayle

The average asking price of a 3 bedroom terrace house in Hayle is £214,000 today compared to £178,000 for a 2 bedroom terrace house.

Average Rental Income

The 3 bedroom property will achieve an average rental price of £825 per month, compared to £750 per month for a two bedroom property.

Rental Yield Comparison

This means that a 2 bedroom terrace house will give you a 5.06% yield. Whereas a 3 bedroom terrace house will give you a yield of 4.63%.  Both are tracking slightly above the national average.

Capital Growth Comparison

In 2017 the average 2 bedroom terrace house price was £164,000. In 2020 its now £178,000, which is a percentage increase of 8.27%.

In 2017 the average 3 bedroom terrace house price was £169,000. In 2020 its now £214,000 which is a percentage increase of 26.5%.

Another point to consider is that both property types current ‘for sale’ prices in November 2020 are considerably higher than the yearly average. Therefore, this may or may not be sustainable, as the stamp duty holiday comes to an end early in 2021.

So which is the better option for you?

Therefore if its purely rental yield that you’re looking at then a 2 bedroom terrace house in Hayle will be your best option. However, a 3 bedroom terrace property based on the past 3 years trend, will provide a far higher capital growth.

That said, whilst there is a high demand for both types of properties in Hayle, 2 bedroom property demand is far higher. This is primarily due to the lower than average wages in this area.

So there you have it. Consider whether rental yield or capital growth are your primary objectives. Then look at the demand for the type of property you’re considering buying.

If you would like to chat about rental investment opportunities in the area, please contact us or pop in to see us at our offices.  Because we’re a letting agency our opinions are purely from a rental opportunity perspective.

These figures are not provided to be relied on for property sale, purchase, mortgage investment or related purposes. We strongly recommend that you seek a professional valuation from a suitably qualified professional before making any decision whether to buy a property. You should also seek advice from a suitably qualified estate agent before determining the market sale price of any property you wish to sell.

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Compare Residential with Holiday Let Incomes in Hayle

holiday lets compared to residential lets income

Hayle, Penzance and St Ives have always been extremely popular holiday destinations. Now add to the mix Covid-19, making it virtually impossible to holiday abroad, at least in the short term. This means that these locations have become more popular than ever. Naturally the media has picked up on this, with some eye watering headlines about what you can earn from a holiday let rental property.

But is a holiday let rental a better option than a traditional residential let?

There are so many variables to consider. However, for simplicity I’ve based all my findings on a typical 2 bedroom terrace house in Hayle, Cornwall, with a garden and walking distance to the beach. I’ve worked on a purchase price of £170,000.

Holiday let Rental Income

Most agencies will initially quote income for full occupancy. When in reality the average is around 28 weeks, with start-ups achieving around 15 weeks initially.  So I’ve based my calculation on the average of 28 weeks, with peak weeks achieving £1,000 and a low season weeks achieving £350 then variable prices in between.

This would provide you with a gross income of around: £16,850

Annual Running Costs for a Holiday Let property

Agency/marketing fees: These can be as much as 50%, with hidden costs but most are around 20%, so this what I’ve worked on = £3,370 p.a.

You can reduce costs here by managing the property yourself but it is a saturated market and it takes a lot of work to secure a decent number of weeks. If you do it yourself, you will need to use on-line booking portals such as bookings.com or Airbnb which have an overly complicated charging structures and cancellation policies.  You will also need your own website and probably your own Facebook page.

Repairs, Safety and Maintenance

Gas safety check: If you have gas to the property you will be required to have an annual gas safety check this would be around £100.00

You may also want to consider annual or bi-annual PAT testing and an electrical condition report every 5 years.  Although these are not currently a legal requirement for holiday lets.

Maintenance

There are running repairs and inventory replacements to keep on top of throughout the year.  Therefore, a rule of thumb guide is to put aside a 10% slush fund to allow for these eventualities.  If you don’t use all the money in one year, it can be put towards larger costs such as new carpets in a future year.

Repairs and Maintenance costs = £1,685

Cleaning and laundry costs

Allow a minimum of £100 per changeover (more if you provide towels and beach towels) = £2,800

Utilities: Gas and electricity for a 2 bedroom property approx. £80.00 pcm = £960

Council tax: Around £1,200

Total annual running costs: £10,115

Net Income for a Holiday Let Property in Hayle

£16,850 – £10,115  =  £6,735

Holiday let Rental income – Return on investment = 3.96%

Residential Let Income

Currently a 2 bedroom Terrace house in Hayle would achieve around £750 monthly rental income.

Therefore, your gross annual income would be: £9,000

Annual Running Costs for a Residential Let Property

Agency Management Fees of 12% = £1,080

Annual Gas safety check. This is a legal requirement if you have gas to the property and must be carried out annually: £100.00

You would also have electrical safety certification cost once every 5 years and an EPC once every 10 years. 

Repairs and Maintenance

You will rarely have the level of ongoing costs that you’d have with a holiday let but there could be some and you may also have times when your property is empty between lets.  Therefore, its also wise to budget around 10% of your monthly income to cover for such eventualities.

Repairs and Maintenance Costs = £780.00

Utilities: None. These are paid for by the tenant

Council tax: None, this is paid for by the tenant

Total annual running costs: £1,960

Net income for a Residential Let Property in Hayle

£9,000 – £1,960 = £7,040

Residential Let Rental income- Return on investment = 4.14%

As you can see, despite the vast difference in the gross income between a holiday let rental of £16,850 and a residential let of £9,000, the net figure is surprisingly similar.  So please do your sums carefully and work out which type of let works best for you.

This is obviously only half the picture, so please also check out our article looking at the initial set up costs of both different types of lets: Set up costs of a holiday let compared with a residential let

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The Latest UK Property Market Trends And How These Are Affecting Cornwall

Compare prices

Market overview

Post lock-down has seen a large bounce in the UK property market. According to Zoopla there has been a 76% increase in the number of sales agreed in August, compared to the last 5 year average.
However, whilst there are around 50% more homes coming on the market than this time last year, there’s still a gap between supply and demand. This is demonstrated on the graph below:

Zoopla house price index

Number of days to sell a home trend

Statistics show that since lockdown the average number of days to sell a home and dropped from 39 to 27. However, word on the street is that the property ombudsman is being swamped with complaints about how long a sale is taking to complete, so its quite jittery out there at the moment.

What buyers want post lockdown

Lockdown has also affected the type of property and the location purchasers are looking for.

Owners of apartments and flats with no outside space are keen to move to a property with some form of garden. We’ve even seen this in our office, with more tenant enquiries wanting outside space as a priority. Larger properties of 4 and 5 bedrooms are selling 33% faster than in 2019 and there’s a shift from larger towns and cities to more rural and seaside locations.

Every agency we’ve spoken to in the area has said they’re getting record numbers of people wanting to move to West Cornwall right now.  So this appears to back up the statistics.

Projections for property sales and prices

The industry experts are all pretty much in agreement that UK property  prices will be between 2% and 3% higher by December than they were in January. The UK property market is also expected to see a continuation of the high number of transactions until around mid-January.  There’s then an anticipation of a rapid drop off, as it gets close to the stamp duty holiday coming to an end.