Tag: Market Update

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Northamptonshire Property Market Update – July 2023 NN11

Trellows Market Update

Northamptonshire Property Market Update – July 2023 NN11

**House Prices in NN11: A Year in Review**

If you’ve been keeping an eye on the property market in NN11, you’ll undoubtedly be intrigued by the latest figures. Over the past year, the real estate landscape in this region has shown significant growth and development. In this blog post, we’ll dive into the statistics and explore the key trends that have shaped house prices in NN11.

**Average House Prices**

First and foremost, let’s look at the overall average house price in NN11 over the last year. According to the data, properties in this area commanded an impressive average price of £325,194. This figure provides a valuable glimpse into the general state of the local property market.

**Property Types and Prices**

One interesting aspect of the NN11 housing market is the variety of property types available. Among the most prominent sales in the area during the past year were detached properties, which fetched an average price of £461,155. These detached homes seem to be highly sought after, likely due to their spaciousness and privacy.

Coming in behind detached properties were semi-detached homes, which sold for an average of £293,017. Those looking for a more budget-friendly option might have found terraced properties appealing, with an average price of £243,871.

**Growth and Historical Comparison**

The NN11 property market has also experienced growth in terms of prices. Sold prices over the past year were 8% higher than the previous year, showcasing a robust increase in property values. Furthermore, the market saw an impressive 16% surge compared to the peak in 2020 when the average price stood at £279,961. This upward trend indicates a healthy and flourishing real estate landscape in NN11.

**Noteworthy Sales**

Let’s take a closer look at some notable property sales in NN11:

1. **Howletts End, Croft Lane, Staverton, Daventry, West Northamptonshire NN11 6JE**
– 4 bed, detached
– Sold for £625,000 on 12 May 2023
– Freehold

2. **Old Mill House, Banbury Road, Moreton Pinkney, Daventry, West Northamptonshire NN11 3SQ**
– Detached
– Sold for £870,000 on 11 May 2023
– Freehold

3. **15, Clarkes Way, Welton, Daventry, West Northamptonshire NN11 2JJ**
– 5 bed, detached
– Sold for £755,000 on 28 Apr 2023
– Freehold
– Previous sales: £550,000 on 16 Oct 2015, £530,000 on 1 Apr 2011

These sales exemplify the diverse range of properties and prices in NN11, from stunning detached homes to more affordable semi-detached and terraced properties.

**Conclusion**

The NN11 property market has undoubtedly been on an upward trajectory over the past year. With an overall average price of £325,194 and various property types available to suit different needs and budgets, this region offers a promising investment and residential landscape. Whether you’re a potential buyer, seller, or simply curious about the real estate market, the figures and trends in NN11 are certainly worth keeping an eye on. As we move forward, it will be exciting to see how the housing market in this area continues to evolve.

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Northampton NN4 property market update April 2023

Trellows Market Update

Northampton NN4 property market update April 2023

 

House Prices in NN4

Properties in NN4 had an overall average price of £336,653 over the last year.

The majority of sales in NN4 during the last year were detached properties, selling for an average price of £457,338. Semi-detached properties sold for an average of £283,377, with terraced properties fetching £245,095.

Overall, sold prices in NN4 over the last year were 11% up on the previous year and 19% up on the 2020 peak of £284,050.

Most Expensive House Sold

36, Belfry Lane, Collingtree, Northampton, West Northamptonshire NN4 0PB

NN7 1HF

105451 4607195 IMG 01 0000

Sold on 18 Jul 2022

Sold Price £1,600,000

  • Modern detached house
  • Seven bedrooms; two en suite
  • Three reception rooms
  • Kitchen/breakfast/family room
  • Triple garage and parking
  • Large established  gardens
  • Backing onto Golf Course

 

With its close proximity to the M1 and A45, NN4 has long been the preferred choice of commuters and those who need easy access to road links.

NN4 boasts some of the best schools in the county and has consistently maintained the position of being one of the most sought after postcodes for fist time buyers, as well as next time buyers.

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Trellows Property Market Update March 2023

Trellows Property Market Update

Trellows Property Market Update March 2023

An overview of the UK residential property market

Summary

This month saw the 11th interest rise in 15 months, taking the base rate from 0.1% in December 2021, to 4.25% a rise of 4,250%. The current rate may not be high by historical standards and still remains lower than the median average, but following 15 years of historical lows, that have resulted in much higher borrowing overall, the effects of the increase have had an enormous effect on borrowers, as the larger average mortgage has amplified the effects of the increase, but how does this affect the market overall?

Background

This month, the UK base rate has risen to its highest level since 2008. There are many contributing factors to  the need for the base rate to rise, although it was inevitable that the base rate has been at a historical low since the last financial crisis and therefore, it was only a matter of time.

In real terms, the current rate of 4.25% is having a greater impact on borrowers that it would have done in the past, due to the higher earning to borrowing ratio, as the value of mortgages has risen exponentially.

With inflation for 2022 ending at over 10% (although it much higher in real terms) and although it was predicted to fall this year, the latest figures for March, confirmed that contrary to falling, inflation had risen to 10.4% which signalled the latest rate rise.

The true impact of higher borrowing costs along with the general slow-down of the property market has not made its way to the public forum yet, as there is long time lag between agreed sales and published figures.

The sales that are completing now, are still for the main part, sales that were agreed before the disastrous mini-budget, that rocked the money markets, it then takes upwards of three months from the point of completion before figures are published on the land registry website.

The figures that we do have, indicate that on average, property is already at or below the figure it was at he beginning of 2022, with further falls on the horizon.

However, if we then factor in an anticipated compound inflation rate for 2022-2023 by the end of this year, that is on course to be in excess of 20%, then we can see that in real terms, property need only fall by 10% which is being accepted to be a minimum, by most of the industry pundits, whether they admit it openly or not, for house prices to end the year 30% lower than they were at the start of 2022.

In addition to this, there has already been a fall in wages(adjusted for inflation) of around 5% minimum, with the possibility of a further 5% fall by the end of this year, which has seriously effected affordability.

The inevitable fall in prices, is not by any means anything to be alarmed about, the combination of affordability, due to inflation and lower wages (when adjusted for inflation) in addition to all the other factors within the UK economy, but should we be alarmed by this and expect a property meltdown?

The short answer is no, there is always a correction in property prices at some point in the cycle and this is simply that time now. The impact of exiting lockdown, rocketing energy costs and an over-heated market, thanks to the stamp duty holiday have contributed to the ‘perfect storm’ which should not come as any surprise to any of us.

London property market snapshot

Interest Rates 2020-2023

Average house price change since 2007

Average UK house price annual percentage change was 6.3% in the 12 months to January 2023

Completed house sales 2015-2022

The average house price change since January 2023 is even steeper than the fall in 2008.

statistic id290623 monthly completed house sales volumes in england and wales 2015 2022

As we can see, July 2022, was clearly the peak of the current cycle, with completions falling to their lowest level since 2008 (with the exception of the lockdown)

Additional contributing factors

The Renter’s Reform Bill’ is expected to get through parliament in the next few months, which will transform the rental market significantly. This on top of the Section 24 income tax act, has contributed to an exodus of buy-to-let landlords from the market. Although there is an increasing entry in the buy-to-let market by the corporations, (15% of property sales in 2022, were to institutional investors) with Lloyds Bank declaring that it intends to be the UKs largest landlord by 2025 and even Tesco making an entry in the ‘Build-to-Rent’ market, these institutional investors are not likely to be taking up the properties off-loaded by exiting buy-to-let landlords.

On top of this, there is the anticipated raising of the minimum EPC rating for rental properties, from the current ‘E’ to a ‘C’ in 2025, although this has yet to be confirmed. This has certainly added fuel to the fire, with over 60% of rental properties in the UK being rated ‘D’ or lower, the cost to landlords could be prohibitive.

In addition to this, yet more bad news for landlords, has been the recent increase in the ‘stress-test’ by most buy-to-let lenders. When this was introduced, it was set at 125% of the rental income, that is to say, that the rent needed to be at least 125% of the prevailing interest payments. However, many lenders have increased the rate to as much as 141% in recent months, which added to significantly higher rates, many landlords are failing the stress tests and therefore unable to re-fix with a better deal, leaving them exposed to BTL variable rates, which are as high as 9%.

All this factors combined have spelt disaster for the thousands of individual BTL landlords.

Conclusion

Whilst the current situation may seem to be the recipe for Armageddon in the property market, there are also many reasons why the market will not grind to a halt.

First Time buyers:

There is without doubt a growing number of first time buyers, who should be very careful about buying at this time with a small deposit of course, as they risk finding themselves in negative equity for the next few years, but as the slide in prices begins to ease, there will be a tipping point, where those who can, will begin to enter the market..

Next Time Buyers:

Regardless of the situation in the property market, this need not be an obstacle to those who need to move and for those moving upwards, there could even be a benefit. The key here is to ensure that you are using a good estate agent, who is not only going to be realistic about the property market, but one who will also work hard to ensure that your property is noticed amongst the increasingly growing number of properties coming to market.

Albeit in lower numbers, properties are still selling, but it is only those that are priced realistically that are finding buyers. The key for next-time-buyers is that although they may need to take an offer lower than they had hoped for, that drop can/should also be reflected (in percentage terms) on the property that they are buying.

If you want or need to sell, in the current climate, the worst thing that sellers could do, is to go on the market too high, the longer that their property is on the market, the lower the final selling price will be.

Investors

There is a large number of investors, already looking for a bargain, but far more who are waiting for the fall to level off, before they begin to enter the market, therefore many of the properties that are either on the market, or due to come to market this year, will find buyers, albeit at a lower price, which will cushion the fall.

Demographics

The ownership of property has changed significantly over the last two or three decades, with an increase in numbers who are either renting, or mortgage free. Those who need to rent, will continue to do so, regardless of the rising rents, even if many do decide to resume living at home, the demand for rental properties continues to out-strip supply.

These two factors combined, result in the effects of higher interest rates impacting a smaller percentage of households in the UK, therefore the likely hood of the housing crisis of the early 90s, where thousands of homeowners were handing back their keys, very unlikely.

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Bedfordshire Market Update April 2022

Bedfordshire House Prices- Map

Bedfordshire Market Update April 2022

An overview of the property market in Bedfordshire

 

Properties in Bedfordshire had an overall average price of £340,159 over the last year. The majority of sales in Bedfordshire during the last year were semi-detached properties, selling for an average price of £326,370. Terraced properties sold for an average of £269,621, with detached properties fetching £501,950. Overall, sold prices in Bedfordshire over the last year were similar to the previous year and 8% up on the 2019 peak of £314,356.

This unprecedented price level is being stoked by the greatest imbalance between buyer demand and the number of properties available for sale that we have ever measured at this time of year. This is the strongest spring sellers’ market that we have ever seen in several metrics. Tim Bannister, Rightmove’s Director of Property Data comments: “There’s a hat-trick of reasons for home-owners to follow the normal trend and make it their goal to sell this spring. Firstly, the potential to achieve a record price for their property.

“Secondly, the imbalance between high buyer demand compared to low available property supply is the greatest that we have ever seen for the start of a spring market, meaning that the chance of being able to pick and choose between several suitable buyers is strong. Thirdly, the proportion of properties finding a buyer within the first week is also at an all-time high for this time of year, so sellers with an appropriately priced and well-presented property can expect a shorter marketing period than the norm. Those who weren’t ready to take advantage of last year’s rush now have another chance to get on the market while these conditions last.”

There are now more than twice as many buyers as sellers active in the market, which is the biggest mismatch between supply and demand that we have ever recorded at this time of year. The speed of the market is further demonstrated by the fact that are there more than one in five (22 per cent) deals being agreed on Rightmove within the first week of being marketed.

This is double the figure for the same period in the more normal market of 2019. Almost half, 47 per cent, are having a sale agreed within the first fortnight, another indicator of high demand and the likelihood of finding a buyer quickly. While these unprecedented numbers are helping to drive prices to new records, they do also show that there are a number of properties that will remain on the market after this time and that may benefit from a price reduction.

BEDFORDSHIRE ENGLAND & WALES
£334,000 – Average Property Price £342,000 – Average Property Price
2% – Average Percentage Change 5% – Average Percentage Change
 £6,700 – Average Percentage Change £15,800 – Average Percentage Change

 

 

PROPERTY TYPE OTM SSTC % SSTC AVAILABLE % AVAILABLE
ALL 7,524 5,218 69.35% 2,306 30.64%
HOUSES 5,235 3,841 73.37% 1,394 26.62%
FLATS 1,699 987 58.09% 712 41.90%
BUNGALOWS 476 323 67.85% 153 32.14%
LAND 67 45 67016% 22 28.20%
COMMERCIAL PROPERTY 177 118 54.12% 89 32.83%

 

Bedfordshire-property-sales-share-by-price-range
Bedfordshire-property-sales-share-by-price-range

Bedfordshire house prices

 

Bedfordshire-real-house-prices

Bedfordshire-real-house-pricesCOMMENT

The Bedfordshire property market, whilst not the most active in the country, seems to be benefiting from sustained growth, with very little evidence that this will change. This is very good for confidence, which adds to the sustainability of the growth.