Month: September 2018

More Than Three Babies Born for Every New Home Built in the Past Five Years in South Kesteven

More Than Three Babies Born for Every New Home Built in the Past Five Years in South Kesteven

More than 3 babies have been born for every new home that has been built in South Kesteven since 2012, deepening the Bourne housing shortage.

This discovery is an important foundation for my concerns about the future of the Bourne property market – when you consider the battle that todays twenty and thirty somethings face in order to buy their first home and get on the Bourne property ladder. This is particularly ironic as these Bourne youngsters’ are being born in an age when the number of new babies born to new homes was far lower.

This will mean the babies being born now, who will become the next generation’s first-time buyers will come up against even bigger competition from a greater number of their peers unless we move to long term fixes to the housing market, instead of the short term fixes that successive Governments have done since the 1980’s.

Looking at the most up to date data for the area covered by South Kesteven Council, the numbers of properties-built versus the number of babies born together with the corresponding ratio of the two metrics …

bourne 219 graph1

bourne219 graph1

It can be seen that in 2016, 4.02 babies had been born in South Kesteven for every home that had been built in the five years to the end of 2016 (the most up to date data). Interestingly, that ratio nationally was 2.9 babies to every home built in the ‘50s and 2.4 in the ‘70s. I have seen the unaudited 2017 statistics and the picture isn’t any better! (I will share those when they are released later in the year).

Our children, and their children, will be placed in an unprecedented and unbelievably difficult position when wanting to buy their first home unless decisive action is taken. You see it doesn’t help that with life expectancy growing year on year, this too is also placing excessive pressure on homes to live in availability, with normal population growth nationally (the number of babies born less the number of people passing away) accumulative by two people for every one home that was built since the start of this decade.

Owning one’s home is a measure many Brits to aspire to. The only long-term measure that will help is the building of more new homes on a scale not seen since the 50’s and 60’s, which means we would need to aim to at least double the number of homes we build annually.

In the meantime, what does this mean for Bourne landlords and homeowners? Well the demand for rental properties in Bourne in the short term will remain high and until the rate of building grows substantially, this means rents will remain strong and correspondingly, property values will remain robust.

If you’d like to know how we can help with no obligation, get in touch at the branch today on the details below.

new lewis
Lewis Thorogood, Branch Manager, Bourne

Call: 01778 300 069
Email: bournesales@hillclark.co.uk

 

 

Bourne Property Market Worth  More Than Virgin Money Holdings UK

Bourne Property Market Worth More Than Virgin Money Holdings UK

The value of all the homes in Bourne has risen by more than 248% in the past two decades, to £1.268bn, meaning its worth more than the stock listed company Virgin Money Holdings UK, which is worth £1.243bn.

Those Bourne homeowners and Buy-to-Let landlords who bought their homes twenty or more years ago have come out on top, adding thousands and thousands of pounds to the value of their own Bourne homes as the younger generation in Bourne continue to be priced out of the market. This is even more remarkable because, in those twenty years, we had the years of 2008 and 2009 following the global financial crisis, where we saw a short term drop in Bourne house prices of between 15% and 20% (depending on the type of property). And although there have been a number of consecutive years of growth in property values recently in Bourne it hasn’t been anywhere near the levels seen in the early 2000’s.

Twenty years ago, the total value of Bourne property was worth £364.3m. Over those twenty years, total property values have increased by £904.4m, meaning today, the total value of all the properties in Bourne is worth £1.268bn. Even more remarkable, when you consider the FTSE100 has only risen by 40.84% in the same time frame. Also, when I compared it with inflation, i.e. the UK Retail Price Index, inflation had risen by 72.2% during the same twenty years.

So, what does this all mean for Bourne? Well as we enter the unchartered waters of 2018 and beyond, even though property values are already declining in certain parts of the previously over cooked central London property market, the outlook in Bourne remains relatively good as over the last five years, the local property market has been a lot more sensible than central London’s.

Bourne house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with persistent immigration and population growth. Secondly, with 0.25% interest rates, borrowing has never been so cheap and finally, the simple lack of new house building in Bourne. Not even keeping up with current demand, let alone eating into years and years of under investment mean only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Bourne has and always will, out ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2018 Bourne Property Market.

If you’d like to know how we can help with no obligation, get in touch at the branch today on the details below.

new lewis
Lewis Thorogood, Branch Manager, Bourne

Call: 01778 300 069
Email: bournesales@hillclark.co.uk

15% More Bourne Home Owners Wanting to Move Than 12 Months Ago

15% More Bourne Home Owners Wanting to Move Than 12 Months Ago

As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Bourne and the surrounding area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Bourne home sellers are putting their properties on to the market than a year ago.

At the start of 2007 there were 239 properties for sale in Bourne but by February 2008, when the credit crunch was really beginning to bite, that number had risen to 441 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market.

Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Bourne property between the end of 2007 and Spring 2009.

However, over the last five years, we have seen a steady decrease in supply of properties coming onto the market for sale and steady demand, meaning Bourne property prices have remained robust. A stable housing market is one of the foundations of a successful British economy, as it’s all about getting the healthy balance of buyer demand with a good supply of properties. Nevertheless, if you had asked me a couple of years ago, I would have said we were beginning to see there was in fact NOT enough properties coming on to the market for sale … meaning in certain sectors of the Bourne property market, house prices were overheating because of this lack of supply.

So, it is pleasing to note, looking at the recent numbers …

There are 15% more properties for sale in Bourne today than a year ago

There were 123 properties for sale 12 months ago, and today that stands at 142. It doesn’t sound a lot, yet this is a small step in the right direction to a more stable property market.

Even better news, since the Chancellor announced the stamp duty rule changes for first time buyers (FTB), my fellow agents in Bourne say that the number of FTB’s registering on the majority of agent’s books has increased year on year. That has still to follow through into more FTB’s buying their first home, however, with the heightened levels of confidence being demonstrated by both Bourne house sellers and potential house buyers, I do foresee the Bourne Property Market will show steady yet sustained improvement during the first half of 2018.

What does this mean for Bourne landlords or those considering dipping their toe into the buy to let market for the first time? Landlords will need to keep improving their properties to ensure they get the best tenants. It is true that demand amongst FTB’s is increasing, albeit from a low base. Even with the new landlord tax rules, buy to let in Bourne still looks a good investment, providing Bourne landlords with a good income at a time of low interest rates and a roller coaster stock market.

If you are thinking of investing in bricks and mortar in Bourne, it is important to do things correctly as making money won’t be as easy as it has been over the last twenty years. With a greater number of properties on the market .. comes greater choice. Don’t buy the first thing you see, buy with your head as well as your heart … and don’t forget the first rule of Buy To Let Investment …..

I will tell you that 1st rule in a couple of weeks!

If you’d like to know how we can help with no obligation, get in touch at the branch today on the details below.

new lewis
Lewis Thorogood, Branch Manager, Bourne

Call: 01778 300 069
Email: bournesales@hillclark.co.uk

 

Bourne Property Market – Which Houses are Actually Selling?

Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down …

The Press is full of column niches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging a national group of letting and estate agents, talking to my fellow property professionals from around the UK, the one thing that is immediately apparent is the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways.

… And that made me think … is there just one Bourne Property Market or many?
I like to keep an eye on the property market in Bourne on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Bourne, be that a buy-to-let property for a Bourne landlord or an owner-occupier house for a homeowner. So, I thought, how could I scientifically split the Bourne housing market into segments, so I could see which part of the market was performing the best and the worst.

I decided the best way was to split the Bourne property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Bourne, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile. Looking at the market, I have calculated that these are the price bands in Bourne are as follows:

• Lowest Quartile (lowest 25% in terms of value) … Up to £150,000
• Lower/Middle Quartile (25% to 50% Quartile in terms of value) … £150,000 to £190,000
• Middle/Upper Quartile (50% to 75% Quartile in terms of value) … £190,000 to £250,000
• Upper Quartile (highest 25% in terms of value) … £250,000 Upwards

So, having split the Bourne Property Market approximately into four equal sizes, the results in terms what price band has sold (subject to contract or stc) the most is quite enlightening –

Bourne Available Sold STC % Sold
Up to £150,000 33 36 52.2%
£150,000 to £190,000 34 32 48.5%
£190,000 to 250,000 40 28 41.2%
£250,000 Upwards 48 35 42.2%

The best performing price range in Bourne is the lower market. As I would expect, the upper half (the top 50%) is finding things toughest. Interestingly for Bourne landlords, the lower end of the middle market isn’t selling as well as other sectors, so maybe there could be some bargains out there for buy to let investment? Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere).

bourne212 graph

It is a fact that British (and Bourne’s) housing markets have ridden the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. No matter what happens to us Brexit or anything else … unless the Government starts to build hundreds of thousands extra houses each year, demand will always outstrip supply … so maybe a time for Bourne landlord investors to bag a bargain?

Want to know where those Bourne buy to let bargains are? Follow my Bourne Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Bourne, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

If you’d like to know how we can help with no obligation, get in touch at the branch today on the details below.

new lewis
Lewis Thorogood, Branch Manager, Bourne

Call: 01778 300 069
Email: bournesales@hillclark.co.uk