Month: February 2019

Bourne ‘Home Owning’ Movers and Shakers in 2018

Bourne ‘Home Owning’ Movers and Shakers in 2018

It’s now commonly agreed amongst economists and the general public that the dramatic rise in Bourne property prices of the last six years has come to an end.
Read the National newspapers, and they talk of doom and gloom in the British housing market with such things as strained buyer affordability (as property prices have increased over the past six years at a far faster pace than average salaries), a lack of new properties being built and the Brexit uncertainties over the last two and half years being blamed for the slow down – yet in the last 12 months, people have still been moving, buying and selling in Bourne at levels similar to the last six years – something tells me we have a case of ‘bad news selling newspapers’.
So instead, let me share with you what, exactly, is happening in the Bourne property market, and more specifically, who is moving and why in Bourne. The majority of sales in Bourne during the last twelve months were detached properties, selling for an average price of £276,700. Semi-detached properties sold for an average of £185,300, with terraced properties fetching approximately £176,900.

In Bourne, in the homeowner sector in 2018 (i.e. owner occupation), 180 households moved within the tenure (i.e. sold the home they owned and bought another one) and 35 new households were created (i.e. they moved from living with family/friends and bought their first home without privately renting).
Bourne Home Movers in 2018
Moved from Owner Occupation to Private Rented 66
Moved from Private Rented to Owner Occupation 84
Owner Occupation to Social Housing 9
Straight to Owner Occupation 35
Left Owner Occupation (i.e. Household Ended) 43
Owner Occupation to Owner Occupation 180

bourne 243 graph

What does this mean for Bourne buy to let landlords? Well looking at the graph, it appears bad news for landlords. There were 84 households that moved into the home owning (owner occupation) tenure from the private rented sector, whilst on the other side of the coin, 66 Bourne households moved to the private rented sector from owner occupation … which appears on the face of it, a reduction in the private sector.

My research has calculated that in 2018, an additional 87 new households in the Bourne private rental sector were created

…and it will continue to grow at those levels for the foreseeable future.

I have one final thought and opportunity for you Bourne property investors. 43 owner occupied households in Bourne sold in last year where the homeowners had passed away. These properties can be a potential goldmine and offer great returns. The reason being is some members of the older generation who have owned these homes for decades have spent money on high capital items (double glazing / central heating etc.) but not spent money on more superficial low-ticket items such as up to date carpets, kitchen, bathroom and decorating (vital if you want to sell your property for top dollar). These properties can often be bought cheaply because most buyers can’t see past the avocado or brown bathroom suite from the 1970’s and the dated decor, so if you were to buy wisely and do the works, you could sell it on for a healthy profit.

So, whatever is happening in the world with Brexit, Trump, China, and the Stock Market … the Bourne housing market is in decent shape for the medium to long term. If we do have small corrections in values in the next 12 to 18 months, in the long term, house prices have always returned … and returned with vengeance. Like I say to anyone buying a property, be they a first time buyer, landlord or homeowner … property is a long game … and if you play the long game, you will always win (although isn’t that true in most aspects of life?).

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Top 25 Most Saleable Streets in Bourne

Top 25 Most Saleable Streets in Bourne

BOURNE HOME OWNERS!!

Top 25 Most Saleable Streets in Bourne

Following on from my last article, if you recall I said that Beech Avenue had the most properties sold in the PE10 Bourne postcode, yet I felt that this information wasn’t telling the whole story, as some roads in Bourne have more properties on them than others. Therefore, I promised that I would compare the average number of properties sold by the actual number of properties on that street, to find out the streets whose owners proportionally moved (or sold) more often than the rest of the locality.

To give some foundation to the article, in 2017 Bourne homeowners had, on average, lived at their existing address for 17 years and 6 months. However, when I looked at the difference between homeowners with and without a mortgage; Bourne homeowners without a mortgage had lived in their Bourne home for an average of 23 years and 9 months compared with 10 years and 1 month for homeowners with a mortgage. Interestingly, Bourne’s South Kesteven Council house tenants have on average resided at their present home for 11 years and 4 months, whilst finally for those who rent from a private landlord, tenants generally have lived in their property for an average of 3 years and 11 months (up from 3 years 5 months only five years ago).

The PE10 street in the top 25 saleable streets with the highest number of households on it is Main Road, which has 196 residential addresses (including surrounding villages). Yet since 1995, only 164 properties have changed hands (some multiple times!) .. which means the street’s saleability or churn rate is 83.7%.

However, the street or road that has the highest saleability or churn rate is Paddington Way … which has 40 households on it, yet since 1995 there have been 113 house sales … a saleability rate of 282.5%.

Therefore, what does this all mean to Bourne homeowners and Bourne landlords? Well these 25 streets are the best performing streets out of the 472 streets in the Bourne (PE10) area so if you live/own a property on those 25 streets … you are sitting on a very saleable street. If you want to find out how saleable your street is .. please drop me a line and we can discuss this further.

http://www.bourneproperty.blog