Author: hillclarkproperty

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?).

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.

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Beech Avenue, Bourne… …the road where people move the most

Beech Avenue, Bourne… …the road where people move the most

Many folks say moving home is the most stressful thing. Moving home is like someone (and that someone is usually you and you are the cause of this devastation) has collected all your worldly goods, put them into brown boxes and into a lorry making your whole life look like a Amazon delivery van, only to spend the next six months unpacking it all, whilst unable to find important things like your bank cards, ‘those’ shoes or special jewellery!

We wish we could be instantly transported like in Star Trek “Beam me up Scotty to a blissful moved in state”. Yet the week you move, it’s like an episode from the original 1960’s series Star Trek, when the crew had a transporter accident with an ion-storm sends Kirk and Spock into an alternate reality, where the caring Federation is the merciless Terran Empire, and the USS Enterprise is a warship and chaos eschews!!!

Star Trek aside, when you decide to move and before the stress of living out of cardboard boxes for months descends; first you trawl the portals (Rightmove/Zoopla/On The Market) to find a new house, which out of the hundreds of properties available to buy, you will probably only view around four or five of them, for no more than 20 minutes each. Then, you will arrange a second viewing of one or two of those initially viewed properties for the estate agency industry stated average of 30/45 minutes maximum (fascinating when you think most people take hours to decide what clothes or shoes to buy but minutes to spend hundreds of thousands of pounds on their next home!). Then you put your property on the market with an estate agent, find a buyer for your Bourne property, agree a price for both, then instruct solicitors. The property becomes sold ‘subject to euphuism’ … sorry ‘contract’ … as solicitors and surveyors and mortgage companies pick holes in the paperwork, threatening to wreck the chain at any moment, whilst you can’t get too attached to the property you want to purchase in case the sale falls through … phew – stressful or what??!!

Is it worth it? Worth the stress? The brown cardboard boxes? Well many Bourne people think so.

In the last 12 months, 396 families have sold and moved home in Bourne (PE10)

Yet the question I want raise is … do people on certain streets in the PE10 postcode move more often than others? Well, the answer might surprise you. I looked at the Land Registry for the all the property sales going back 23 years (to 1995) in the PE10 postcode whilst also calculating the average value of a property on a particular street/road (to see if there was a correlation between price and moving). So initially looking at the top 10 streets in the postcode, in terms of pure out and out house sales, Beech Avenue is the winner with an average of 7.96 house sales per year (since 1995) as on the graph below.

And to look at the bigger picture, the table below shows the top 25 streets, with the average value of a property on that street. As you can see, there is no correlation between the average value of a property and the number of times a property gets sold on that street.
Street Average Value of a Property
On that Street/Road Average Number of
Properties Sold per Year (since 1995)
Beech Avenue £232,361 7.96
Main Road £254,957 7.13
High Street £319,903 6.96
North Road £319,002 6.09
Southfields £211,984 5.65
Stephenson Way £248,328 5.30
Mill Drove £308,608 5.39
Eastgate £145,671 5.13
Austerby £193,184 5.13
The Pollards £154,103 5.00
Foxley Court £152,505 5.09
Paddington Way £192,026 4.91
Viking Way £214,714 4.96
The Causeway £151,391 4.57
Station Road £232,745 4.61
Wakes Close £158,255 4.52
Waterloo Drive £190,703 4.17
Beck Way £154,297 4.30
Hereward Street £123,847 4.13
Northorpe £297,934 4.04
Saxon Way £202,019 4.09
Piccadilly Way £161,703 3.96
Kingsway £173,327 4.00
Tarragon Way £255,258 3.78
Tennyson Drive £227,040 3.65

However, I still felt the information wasn’t telling the whole story … some roads in Bourne have many more properties on than others, so I wanted to then 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.

In the next article, (and I promise I won’t mention Star Trek again), I will answer that question in great depth … and the results should (as they did me) certainly raise an eyebrow. The question is … do you live on one the top 25 Bourne most saleable streets in Bourne (PE10)?

Come back to my Bourne Property Blog for the next article to find out!

1 bed, 2 bed or 3 bed homes – Which Sell the Best in Bourne?

1 bed, 2 bed or 3 bed homes – Which Sell the Best in Bourne?

A few months ago, we wrote an article on the Bourne Property Blog about the length of time it took to sell a property in Bourne and the saleability of the different price bands (i.e. whether the lower/middle or upper local property markets were moving slower or quicker than the others). For reference, a few months ago it was taking on average 52 days from the property coming on the market for it to be sold subject to contract (and that was based on every Estate Agent in Bourne) … and today … 106 days .. does that surprise you with what is happening in the UK economy?

Well, a number of Bourne landlords and homeowners, who are looking to sell in the coming months, contacted me following that article to enquire what difference the type of property (i.e. Detached/Semi/Terraced/Apartment) made to saleability and also the saleability of property by the number of bedrooms. As I have said before, whether you are a Bourne landlord looking to liquidate your buy to let investment or a homeowner looking to sell your home; finding a buyer and selling your property can take an annoyingly long time… but anything you can do to mitigate that is helpful to everyone.
The star players are the terraced/town house variants of Bourne property, whilst apartments seem to be sticking in Bourne.

Next I looked at what the number of bedrooms does to the saleability of Bourne property.. The four bed properties seem to be taking the longest time to sell ..and to answer the question in the title .. it’s three bed properties!

So, what does this mean for Bourne buy-to-let landlords and homeowners?

There is no doubt that there is a profusion of properties on the market in Bourne compared to 18 months ago … it’s not because more houses are coming on to the market, it’s because they are also taking a little longer to sell. This makes it slightly more a buyer’s market than the seller’s market we had back in 2014/5/6. Therefore, in some sectors of the Bourne property market, it is much tougher to sell, especially if you want to sell your Bourne home fast.

Therefore, to conclude, on the run up to the New Year, if you are looking to buy and plan to stay in the buy to let market a long time, perhaps take a look at the Bourne properties that are sticking as there could be some bargains to be had there? Want to know where they are .. drop me a line and I will tell you a nifty little trick to find all the properties that are sticking.

Visit http://www.hillandclark.co.uk to find your local property experts!