UK Landlord Forum / Life

Hi All,

I have decided to sell my HMO as the area is fast declining and now is the right time to shift it.

I am thinking of buying either a flat or smaller 2 bed house in any of the following areas, Chesterfield, Sheffield, Rotherham, Barnsley, Doncaster, Wakefield and Leeds as I already have a successful flat nearby.  I would also consider other highly recommended areas.

I would be grateful to hear from anyone who has experience of these areas in terms of where to buy and where to definitely avoid. I know that I can contact estate agents but would be wary about the information I might receive.

A nice flat always seems a good choice but I am concerned about the maintenance charges being high as I would want to pass these on in the calculation of the rent which might be difficult but not impossible. A freehold house with a nice small maintenance free garden might appeal to couples with a small family. I will be looking for singles, couples or small families. My criteria is to get the area right and obviously it needs to be attractive and no work required. Other considerations are the job market in those areas and unemployment rates. I realise that I will have to do extensive research which is just beginning so any advice and tips about where to get information would be greatly appreciated.

My initial review has revealed that there is no shortage of properties on the market and from what I am seeing plenty are selling so that's obviously a good sign too.

I would also be interested in opinions on the merits or disadvantages of buying close to the city centre. In the past I have always thought that property close to the centre is easy to rent and tends to have a higher purchase cost...but given what is happening to the high streets with businesses closing even before Covid 19 does it really mean much these days? I am wondering if it could be a disadvantage given that many centres also have a lot of trouble especially at weekends when people go out and drink to excess. I have seen a couple close to the centre so just wondering what others think concerning this?

My rental income is my only source of income so I cannot afford to get this wrong. I will have my own 'wish list' which should help me narrow properties down quickly but it's the areas that I'm stumped on.

Any help and advice would be much appreciated.

Thanks Tony

Which city?

I have an apartment in S1... been let successfully for years, always goes on the first day, nearly always the first viewing... current rent is £1,250 per month... but you're right about the Service Charge and Insurance and Ground Rent etc.. However, thankfully, the apartment itself is not exactly beset with maintenance problems... all I've done is replace the washer / dryer over the years. That's good news because parking is costly and fraught with difficulty.

My own strategy is to move towards freehold houses... areas don't matter so much as long as they're not in selective licensing... Sheffield and Barnsley have very many of those. What's your budget for a single property?

Thanks Hippogriff for your reply.

Wow you are getting a great return on your apartment I could only dream of that.

I am not that familiar with Sheffield despite being there 3 years long story. I assume S1 is city centre hence the good returns.

Unfortunately my house is in S5 I'm sure you know about the problems there.

My budget isn't much up to 75k ish hence I have cast the net wide. I am hoping to find something with such a wide search area but definitely cannot afford to go into as you say a selective licencing area. I think it might be a long search I'm not looking at my age to build a property portfolio unfortunately I started too late so it's just for retirement income.

BTW how much do you pay for your monthly service charge or is it a conversion?

Thanks Tony

Service Charge is over £2,500 per year... that's the problem with apartments. Buildings Insurance is another £500. Ground rent another £400. You have to be careful with apartments. A sound little freehold terrace has so much more going for it, in my view. The rent of £1,250 is nice... and the lack of maintenance is nice... but I would not elect to do it again. I used to live there - but it wasn't for me. If the UK / China spat heats up or Covid continues I'm likely to struggle (harder than I have ever done before) to get Chinese students in who pay the whole lot up front and then live as quietly as mice for the year.

Ouch! Yes some hefty costs there, its one of the reasons why I am leaning towards a 2 bed house, I think these days you would do well to get service charges for less than £100 pm and by the time you add that to the rent you might price yourself out of the market. 

I think this will be the 1st question I will ask of estate agents because if its hight its not worth even going to see. There seems no end of propertires on the market and I am seeing many going STC quickly so fingers crossed it will continue for the rest of this year.

I also see your problem about the Chinese students, I read about it possibly being a problem for Sheffield elsewhere, I did not realise Sheffield had so many of them tbh.

I am thinking I might avoid Sheffield and possbily for for Leeds or Wakefield but I have a lot of research to do, willl just go with my gut instints and backed up with good research when I am ready, at the moment I am just trying to get a good list of good areas and no go areas to narrow searching down and avoid a lot of time being wasted.

I hope you don't lose your students and things calm down, its a shame about the way China dealt with the whole Hong Kong situation and its made the world a much more dangerous place Xi doesn't seem a very nice guy at all power mad he's worse than Putin.

Regards,

Tony

Regardless of the area you are looking at,I would never buy a flat again.20 years ago they were what tenants wanted,but the market has changed.Flats are a total pain.Couples, especially those with children,are a good bet.I would be looking at a nice tidy terrace,near to places that employ public sector workers,or large warehouses.Schools are good too.My local university is on a threatened list,65% overseas students,mostly Chinese,and apart from them,loads of other jobs and businesses on campus could go.Even brief voids are expensive,try to appeal to tenants who want a home,not just somewhere to hang their hat.   

Heavykarma... please... my place is not a "flat"... it's an "apartment", thank you! But all good points. I am letting the money roll in for this while it does... then I will re-think... anything high-rise may have the spectre of cladding remediation hanging over it as well... so buying and selling (and even remortgaging) could easily be made more difficult as the Solicitors would advise buyers to not get involved in something that needs remediation work, but it still remains an unknown.

Ooh,an apartment-get you darling! A LA described my 2 up 2 down rental with downstairs bathroom as a "Town house".

Good points made...since I was mostly concerned about the high cost of maintenance fees and the points made I think I am now more likely to go for a nice small terrace that's roomy and well decorated with new kitchen and bathroom.

I have seen a lot of what is obviously investor buy to flip on the market some look nice but I guess you have to be very careful what ever you buy...I have a tough criteria list so it should massively narrow them down hopefully I will get a gem.

Thanks both for your experience and advice.

Regards Tony