“What’s happening to the Bourne Property Market” is a question we are asked repeatedly.
Well, would it be a surprise to hear that our own research suggests that there isn’t just one big Bourne property market – but many small micro-property markets?
According to recent data released by the Office of National Statistics (ONS), we have discovered that at least three of these micro-property markets have emerged over the last 20+ years in the town.
For ease, we have named them the …
- ‘lower’ Bourne Property Market.
- ‘lower to middle’ Bourne Property Market.
- ‘middle’ Bourne Property Market.
The ‘lower’ and ‘lower to middle’ sectors of the Bourne property market have been fuelled over the last few years by two sets of buyers. The first set, making up the clear majority of those buyers, are cash rich landlord investors who are throwing themselves into the Bourne property market to take advantage of alluringly low prices and even lower interest rates.
The other set of buyers in the ‘lower’ and ‘lower to middle’ Bourne property market are the first-time buyers (FTB), although the FTB market is in a state of unparalleled deadlock as it’s been trampled into near-immobility and incapacity by the new 2014 stricter mortgage affordability regulations and also fewer mortgages with low deposits.
Some of you may be interested to know how we have classified the three sectors ..
- ‘lower’ Bourne housing market – the bottom 10% (in terms of value) of properties sold
- ‘lower to middle’ Bourne housing market – lower Quartile (or lowest 25% in terms of value) of properties sold
- ‘middle’ Bourne housing market – which is the median in terms of value
…. and if one looks at the figures for South Kesteven District Council area you can see the three different sectors (lower, lower/middle and middle) have performed quite differently.
|South Kesteven District Council Property Market – Sold Prices||Price Paid in 1995||Price Paid in 2017||Percentage Uplift
1995 – 2017
|Lower (Bottom 10%)||£29,000||£104,950||261.90%|
|Lower to Middle (Lower Quartile)||£37,000||£139,475||276.96%|
|Middle (The Median)||£55,262||£218,836||296.00%|
You can quite clearly see that it is the ‘middle’ market that has performed the best.
You might ask, what do all these different figures mean to homeowners and landlords alike? Quite a lot – so let us explain.
The worst performing sector (with the lowest Percentage uplift) was the ‘lower’ housing market. Therefore, interestingly, if we applied the best percentage uplift figure (i.e. from the ‘middle’ market percentage uplift), to the ‘lower’ 1995 housing market figure, the 2017 figure of £104,950, would have been £114,840 instead – quite a difference you must agree?
Now, we have specifically not mentioned the upper reaches of the Bourne housing market for several reasons. Firstly, the lower or middle market is where most of the buy to let investment landlords buy their property and where the majority of property transactions take place. Secondly, due to the unique and distinctive nature of Bourne’s up-market property scene (because every property is different and they don’t tend to sell as often as the lower to middle market), it is much more difficult to calculate what changes have occurred to property prices in that part of the Bourne property market – looking at the stats for the up-market Bourne property market from Land Registry, only 9 properties in Bourne (and a 5 mile radius around it) have sold for £1,000,000 or more since 1997.
So, what should every homeowner and buy to let landlord take from the information that there are many micro-property markets? Well, when you realise there isn’t just one Bourne Property Market, but many Bourne “micro-property markets”, you can spot trends and bag yourself some potential bargains.
If you would like more information about this article or on the current housing market in Bourne, please subscribe to the blog feature by clicking the tab on the side of the page or better still give us a call at the office on 01778 300069.