The conventional way of categorising property in Britain is to look at the number of bedrooms rather than its size in square meters or feet, and both homeowners and tenants are equally happy to pay for more space. It’s usually the case that the more bedrooms a house or apartment has, the bigger the property is likely to be. It’s not only the tangible additional bedrooms, but properties with additional bedrooms tend to also have larger (and possibly more) reception (living) rooms. However, if you think about it, this isn’t so surprising given that properties with more bedrooms would typically accommodate more people and therefore require larger reception areas.
In todays Willesden property market (including local areas), homeowners and landlords that I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive and which ones may detract from the price. Over time buyers’ and tenants’ wants and needs change with current fashions and trends.
Locally, location is still the No. 1 factor affecting the value of a property, and a property in the best neighbourhoods can achieve a price almost 50% higher than a similar house in an alternate area. After location, the next characteristics that have a significant influence on the desirability, and thus price, of property is the number of bedrooms and the type (i.e. Detached/Semi/Terraced/Flat).
The requirement for a certain number of bedrooms for owner-occupiers very much depends on the size of their family and the budget, whilst landlords must consider the investment opportunity. In this article, I have analysed the local housing stock into bedrooms and tenure, initially looking at Willesden (NW10) homeowners.
And now the Private rented sector …
It can quite clearly be seen that owner-occupiers in Willesden tend to occupy the larger properties with more bedrooms. This would be expected due to the demographic of homeowners and people that privately rent.
However, this shows there could be opportunities for local buy to let landlords to purchase larger properties with more bedrooms to attract tenants requiring those types of properties. However, before you all go buying larger 4 bed and 5 bed mansions to rent them out, a lot of bigger properties in Willesden don’t make financial sense when it comes to buy to let as they tend to command premium sales prices.
For many years, Willesden buy to let landlords have been the lone buyers of the smaller, one and two bed starter homes of the market, as they have been lured by elevated tenant demand and eye-catching returns. Some Willesden landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first time buyers. This is great news for first time buyers .. but one final note for landlords locally… all is not lost… you can still pick up bargains, you just need to be a lot more savvy and do your homework.