Is This the End of No-Fault Section 21 Evictions for the 7,376 Bexhill Tenants?

Is This the End of No-Fault Section 21 Evictions for the 7,376 Bexhill Tenants?

In the late Spring, the Government announced that they were planning to end no-fault evictions for tenants living in private rented accommodation. In this article we look at the impact for Bexhill homeowners, Bexhill tenants and Bexhill buy-to-let landlords.

In the late spring, the Government announced that they were planning to end no-fault evictions for tenants living in private rented accommodation.

I have had a number of Bexhill landlords contact me anxious that removing a tenant from their Bexhill buy-to-let property in the future had possibly become a lot more problematic. Yet, at the launch of the consultation on the changes to the piece of legislation relating to no-fault evictions (called the Section 21 amendments), the Government wanted to assure British landlords that they would be protected by the bolstering of the existing Section 8 legislation. The current Section 8 allows landlords grounds for recovery of their properties for reoccupation of the landlord, non-payment of rent and other legitimate factors.

3,489 Bexhill landlords are affected by this
potential change in the law

Yet, it is comforting for Bexhill landlords and tenants in the fact that most competent letting agents very rarely have to evict a tenant. In the worst-case scenarios the tenant needs evicting (normally because rent hasn’t been paid) or because the landlord is either selling their buy-to-let investment or moving back into their property. Look at the consultation – it has been indicated that those grounds will not be removed from section 8 powers during the government’s consultation and the talk is they will be bolstered and improved. To put the removal of Section 21 notices into some context…

Only 22,527 section 21 notices made it to Court last year, out the 4.5million private rented households

Scotland banned no fault evictions (i.e. their own version of a Section 21) two years ago, and the model suggested by Westminster is similar to that of the new Scottish system. Landlords, tenants and agents have had to adapt north of the border, and there hasn’t been the mass exodus of landlords from the market since then.

Yet the call in the lettings and legal profession is … if the Government is intent on making these changes, we need well-funded courts which specialise in housing and tenancy matters (like there are for family law and children). Especially when the landlord manages the property themselves (without an agent), the issue of eviction comes about from a breakdown in communication between landlord and tenant. The courts could use their mediation skills to make it simpler and faster for tenants and landlords to obtain quick and available justice instead of the existing drawn out procedures under Section 8, which helps no one (not even tenants). This is important as the demand for Bexhill rental properties is growing and people need a home to live in – fact.

Bexhill needs an additional 166 buy-to-let properties per year for the next decade to meet the demand from Bexhill tenants

As an agent in Bexhill, I know most Bexhill landlords consider buy-to-let in Bexhill as a long-term investment, with the average landlord looking to retain their buy-to-let property for at least 10 years and beyond. Talking to other agents around the country, over 90% of Section 21 notices are made by the tenant, not the landlord. Removing the Section 21 notice could affect tenants more than landlords.

Replacing Section 21 with a process that requires a landlord to firstly have a good reason, and secondly go through due process, will likely remove the more unprincipled landlords from the property market. That is great news as those unprincipled landlords will either sell their properties to new buy-to-let Bexhill landlords, or to tenants who want to buy them. So, it could be a small win for people looking for a new Bexhill home, and a disappointment for unprincipled landlords simply looking for a cash cow ‘have no care about the property or tenant’ investment vehicle.

If you are a Bexhill landlord and want to know more about this, whether you are a landlord of ours, a Bexhill landlord with another Bexhill agent or a self-managing landlord, feel free to drop me a line or pick up the phone (I don’t bite) to chat about the implications of this and other legislative changes that are on the horizon. For more articles go online or click the following link www.redwell-estates.co.uk and head for the blogs. Here there are many different topics to chooses from, enjoy your reading time. Best wishes Patrick Stappleton Author of the Bexhill Property Blog.

The statistics were taken from the Ministry of Justice, Census and projections from ONS and English Housing Survey.
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Are Bexhill Builder’s Constructing the Wrong Type of Property?

The British housing market has never been so newsworthy.

Every other day, there is an article in the newspaper or online about impending house price drops, house price rises, building on green belt, mortgage rates up/down, first time buyer affordability and the woes of being a buy to let landlord, to mention but a few. As a nation, we have a strong national desire to be homeowners.

The English Housing Survey stated the proportion of owner-occupied households increased steadily from 52% in the early 1980s to 2003 when it reached its peak of 71%. Since then, owner occupation gradually declined to 63% in 2014, yet in fact increased to 64% in 2017 and has stayed there since.
One of the main motives of home ownership is the prospective tax-free capital appreciation that can be obtained.

It’s no wonder the phrase ‘as safe as houses’ is popular in the English language, as many homeowners use homeownership as a nest egg or even a pension pot, as savings rates are at extraordinarily low levels.

Yet even with the news that homeownership is on the rise, the biggest seismic shift to the Bexhill property market is the growth of the rental market, which has more than doubled in the last 15/20 years. So how can the social housing sector (Council Housing) remain roughly at the same level since the millennium, homeownership slightly grow, yet the private rental sector be so huge?

Well it comes down to the fact that many more homes have been built in Bexhill in the last 15/20 years, and a lot of them have been bought for buy to let, or Bexhill homeowners with second hand starter homes have also sold them to buy to let landlords and they have bought larger brand new homes.

Yet the question we wanted to ask is … are we building the right sort of homes, especially when it comes to the number of bedrooms? Whilst the data doesn’t exist for Bexhill, the country’s stats are available, and it makes fascinating reading…

Looking at the graph in 2008, 59% of new homes built were one and two beds, yet last year that had dropped to 35%.

The Housing Minster said recently he was concerned that new homebuilders were building the wrong types of homes in the wrong places at the wrong prices. Many (not all) tenants are tenants because they can’t afford the deposit and as there is a direct coloration between the rent’s landlords charge and tenant’s earnings (i.e. as earnings go up, rents go up and vice versa), and earnings for the last seven years have been subdued, the property tenants have been able to afford in Bexhill are the smaller one and two bed properties.

Yet a lot of these tenants are now having families (with the need for larger property with three, even four bedrooms).

Looking at the stats for Rother, it can be seen the vast majority of homeowners live in the larger properties with more bedrooms, whilst private rental tenants are in the smaller properties (with less bedrooms).

Our concern is – will young families and professionals be able to afford to live and work in Bexhill, especially as the local authorities are unable to build council housing (aka Social Housing)?

One symptom of all these issues mentioned above is the massive growth in multi-family households (i.e. households containing two or more families), which have increased by 42% in under a decade. Now of course many will be because of older couples moving in with their adult children yet many are unrelated families sharing a house, something that simply shouldn’t be happening in 2019.

If we don’t increase the supply of the ‘right’ sort of homes, what will their living conditions be like?

Whilst we are still a country of homeowners and even though there has been a slight growth in numbers, the long term trend is downwards if we don’t build enough of the ‘right’ new homes, in the ‘right’ location and the ‘right’ price, Bexhill people will continue to increasingly rent … which is only good news for Bexhill buy to let landlords.

So, Whats your take on this? Do you agree? Let me know by emailing me on patrick@redwell-estates.co.uk. Thank you for reading and if you want to read more articles then go to my blog at www.bexhillpropertyblog.com. Regards Patrick Stappleton

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84.3% of Bexhill OAP’s own their own home … and they are worth £2,165m

Yes, that number is staggering isn’t it ….

Of the 8,980 households in Bexhill where the head of the household is 65 years or older, an astounding 7,570 (or 84.3%) of those are owned, which is just above the national average of 74.1%, which sounds great – yet nothing could be further from the truth.

I chat with many Bexhill pensioners who would like to move but cannot, as there is a scarcity of such properties for Bexhill mature people to downsize into. Due to their scarcity and high demand, Bexhill bungalows on average get a 12% to 22% premium per square metre premium over two storey properties. To add insult to injury, a recent NHBC survey reported that only 1% of new builds in the Country were single storey bungalows (compared to 7% in the mid 1990’s).

Bexhill OAP’s are sitting on £2,165m of equity in these Bexhill homes.
In a survey conducted a couple of years ago by YouGov, they established that just over one third of homeowning people aged 65 and over in the Country were looking to downsize into a smaller home.

Yet, the Tory’s over the last nine years have appeared to target all their attention on first-time buyers with stratagems such as Starter Homes to safeguard the youngsters of the UK not becoming perpetual members of ‘Generation Rent’. Equally though, this doesn’t address the long-lasting under-supply of suitable retirement housing essential to the needs of the Bexhill’s hastily ageing population.

Lamentably, the Bexhill’s housing stock is tragically unprepared for this demographic shift to the ‘overextended middle age’, and this has created a new ‘Generation Confined’ quandary where older people cannot move.

Also, those older Bexhill retirees’ who do live in the limited number of Bexhill bungalows are finding it difficult to live on their own, as they are unable to leave their bungalow because of a lack of sheltered housing and ‘affordable’ care home places.

 Meaning those older Bexhill retirees can’t leave their Bexhill bungalows, younger Bexhill retirees in their larger 2 storey family houses can’t buy those Bexhill bungalows (occupied by the older retirees) and those Bexhill people in the 30’s and 40’s can’t buy those larger 2 storey family houses (occupied by the younger retirees) they need to for their growing families … it’s like everyone is waiting for everyone because of the bottleneck at the top.

For those wanting to see the complete stats for Bexhill as whole …
Bexhill’s (and the rest of the UK’s) property prices have soared over the last 50 years because the number of properties built has not kept up with demand. With restrictive planning regulations, migration, people living longer and excessive divorce rates (meaning one family becomes two) we need, as a Country, 240,000 properties to be built a year since the Millennium to just stand still.

At the turn of the Millennium, the Country was constructing on average 180,000 to 190,000 households a year, that figure dropped in the five years after the Credit Crunch to 135,000 and 145,000 households a year. Although we built 217,000 last year, we still have all those 19 years to make up for.

The answer …. allow more land for starter homes, bungalows and sheltered accommodation because land prices are stifling the property market as the large building firms are more likely to focus on traditional houses and apartments than bungalows (because they make more money from them).

My thoughts for the savvy Bexhill property investors – until the Government change the planning rules and allow more land to be built on – Bungalows, especially ones that need some TLC after someone has passed away, are a great bet for flipping and even potential rental returns for future property investment as more and more OAP’s will be renting in the decades to come?

For more of my blogs, go online to www.bexhillpropertyblog.com, where there are many different articles discussing the Bexhill Property Market. Let me know your thoughts please. If you have a bungalow to sell or rent, then give me a call on 01424 224242. Regards Patrick Stappleton.

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What’s the biggest street in Bexhill (TN39)?

In this week’s article I talk about the 20 biggest streets in TN39 in terms of the number of households on that street or road then compare their total values and how many people have moved homes in the last three years on those streets, with some most interesting and intriguing outcomes.

What’s the biggest street in Bexhill (TN39)?

Well my recent articles about Bexhill’s most moved street in the last 3 years and the Monopoly board article (the one where I listed the most valuable streets) caused quite a lot of interest locally, so I decided to see what else I could find out about the TN39 postcode area, and I have been able find out the biggest streets in the Bexhill (TN39) postcode area.

Don’t worry, I will get back to some hard-hitting articles about the lack of new homes being built in Bexhill, the trials and tribulations of being a Bexhill buy-to-let landlord and the future of the Bexhill property market … yet in this article because of the previous positive comments, I wanted to give you what you, the Bexhill homeowners and Bexhill landlords asked about and wanted!

The biggest street in TN39, when it comes to the number of houses on it is London Road, with 527 homes. In second place is Cooden Drive with 451 homes and in third is West Parade with 333 homes.

Yet, size isn’t everything and the most valuable street of the top 20 biggest streets is Cooden Drive at £167.6m with an average value of £372,000 per property.

The street with the greatest number of movers in the last 3 years is also Cooden Drive, yet its saleability rate was only 15.1%, with Little Common Road having the highest saleability rate of 21.3%.

The full breakdown can be found in this chart below.

Yet, did you really think I wouldn’t get at all serious ..

The basic rudiments of the Bexhill property market remain principally healthy in many parts of Bexhill, yet the existing political environment means that the vital element of confidence has been diminished slightly in certain parts, and that is triggering a minority of potential property purchasers and house-sellers to vacillate, yet with unemployment at an all-time low, a record number of people with a job, ultra-low interest rates and decent mortgage availability (with the Banks and Building Societies tending to drop mortgage rates instead of increasing them), those Bexhill first time buyers (and especially Bexhill buy-to-let landlords) who have adjourned their next house purchase because of perceived political uncertainty should be reminded that talking to many of my fellow Bexhill agents they have more homes on their books than at any time for the last three or four years, so there is a greater choice of Bexhill properties to call your next home/BTL investment with a potential of securing a great property deal in the next month or so.

Irrespective of what happens with Brexit, Bexhill people will still need a roof over their heads and as I have mentioned on several occasions, I have proved beyond doubt we aren’t building enough homes both locally in Bexhill and nationally. If supply is limited and demand increases (as the population grows and we get older), prices in the medium to long term can only go in one direction. Upwards!

So, whatever happens with BoJo and Brexit – why wait, because once we get over that hurdle, there will just be another hurdle and another hurdle and by which time – we will be in 2029 and you would have missed the boat. We survived the Global Financial Crash, 3-day week in 1970s’, hyperinflation etc etc …  yet the choice is yours. I hope you enjoyed this article and invite you to make contact. Wishing you all the very best, Patrick Stappleton Author of the Bexhill Property Blog.

END

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Bexhill Property Market Update Summer 2019

In this week’s article on the Bexhill property market we look back at the last 12 months to see how many properties have sold compared to the long-term average, what’s happened to Bexhill property prices by property type and then we look forward to the short, medium and long term – what affects the new PM and his policies will have on the property market, both locally and Nationally.

The foundations of the Bexhill Property Market over the summer have continued to be principally sound; yet the existing political macroclimate means that the critical element of consumer confidence has been reduced and that is triggering some potential Bexhill property buyers and Bexhill house sellers to falter slightly and hang fire making any firm decisions on property.

With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability (even those with low deposits – there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 main stream lenders that would offer 100% no deposit mortgages), Bexhill buyers have a lot going in their favour, aside from the perceived political uncertainty.

Interestingly, Rightmove have stated there are more properties for sale today in the Country, than at any time since 2016, and Bexhill follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Bexhill and the surrounding locality and it makes very interesting reading.

Overall, property values in the Bexhill area are 2.1% higher
than a year ago as the average property value in Bexhill now stands at £292,700.

When I looked at the types of Bexhill properties, a slightly different picture appeared ..

• Bexhill Detached homes rose by 2.7%
• Bexhill Semi-detached homes rose by 2.3%
• Bexhill Terraced/Townhouse rose by 2.3%
• Bexhill Flats/Apartments dropped by 0.2%

and splitting down the types of Bexhill into property types ..

• Bexhill Detached £406,900
• Bexhill Semi-Detached £271,900
• Bexhill Terraced/Townhouse £231,600
• Bexhill Flats/Apartments £182,100


Yet, Bexhill Property Market Blog readers will know I always like to measure the health of the Bexhill property market not only by house prices but transaction levels as well ..

800 properties were sold in the last year in Bexhill,lower than the 10-year average of 961 properties per annum

Considering the uncertainty, the Country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Bexhill property market.

Now looking forward towards the end of the year… how will Bexhill house values change under the new Prime Minister?

Bexhill buy-to-let landlords and Bexhill first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Bexhill homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.

That means those selling their homes in Bexhill need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.

BoJo, Brexit … to be honest are all short-term distractions from the long-term issues of the UK and Bexhill property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase. Thank you for reading my latest blog.

For more articles click on www.bexhillpropertyblog.com or go onto the Redwell Estates website. Patrick Stappleton, Author of the Bexhill Property Blog. Com


The information was gathered from the following places: Property Values Growth is for your Local Authority from the land Registry. Property Value Types from Zoopla and House sale numbers from Land Registry

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Is Bexhill Too Densely Populated?

In this week’s article on the Bexhill property market, I compare the population of Bexhill and the density of people living in Bexhill to nearby towns / cities and other hotspots around the country to decide if we are overcrowded.

Has England’s green and pleasant land suddenly become England’s green and overcrowded land?

With the nation’s ever-increasing population and the double whammy that people are now living longer, this means as each year goes by, there is an ever-growing strain on public services and my favourite topic – housing. It’s no wonder some people are saying things are at crisis point when it comes to infrastructure (like roads, schooling etc.) and housing. I hear it all the time, people complaining that Bexhill looks like a building site and, we are packing people in like sardines into our Bexhill homes. Yet I wanted to find out exactly what the truth was.

Starting with the UK as a whole, there 698 people per square mile whilst in England, there are 1,103 people per square and finally in Greater London 14,587 people per square mile … these all sound quite awful numbers, until you drill down and realise a square mile is an awfully big area – there are only 93,600 square miles in the whole of the UK and that includes the wilderness areas of Scotland!

Let’s look at more realistic areas of land … and I want to look at my favourite – the acre. To those born after the mid 1970’s, an acre is roughly half the size of a football pitch or a square roughly 63 metres by 63 metres and there are just less than 2.5 acres in a hectare.

The population of TN40 is 17,422 and the total area of TN40 is 1,701 acres, meaning 10.24 people live per acre in Bexhill’s TN40, So, how does that compare to neighbouring areas…

As you can see, only just over 10 people live per acre in Bexhill’s TN40, interesting when compared to both Greater London, which has density of 23.26 people per acre and London’s most crowded suburb, Pimlico at 92.32 people per acre. Yet even Pimlico is nothing to the Collblanc district in Barcelona, which has 214.8 people living it per acre.

So, is Bexhill overpopulated? Yes, it seems that way at school time or rush hour when sitting in traffic that Bexhill is overpopulated – yet the stats show – we aren’t.

Evidently, we are never going to have an even spread of population as can be seen from the figures in the table, and the remote nature of some parts of the Country would not be able to withstand high densities of new people without enormous infrastructure investment.

Yet could we accommodate a much larger population in the UK (and Bexhill) although there would be trade-offs? Look back at the 17th and 18th century and certain sectors of society were warning about population growth. The population of the UK in 1801 was 10.5 million and even with the growth of the population since then, only 1.2% of the UK is currently built on for housing purposes.

The question, it seems to me, is not can we manage but how
would a larger Bexhill population change our way of life,
both for better and possibly worse?

The planners have a responsibility to ensure Bexhill provides its fair share of new homes to accommodate this population growth in the coming years. The local authority has a responsibility towards adequate provision of the infrastructure of roads, hospitals and schools etc., to match the growth in housing. This is not a political topic and I hope once the ‘B’ word is finally sorted we can get on with addressing the shortage of affordable new homes for future generations.

Well I do hope you enjoy reading my blogs and they are a use to how you play the Bexhill property market. If you fancy a chat on any of the topics written just call me or pop into my office in Western Road Bexhill for a chat. Best wishes, Patrick Stappleton. Author of the Bexhill property blog.

Other Information
The Statistics are taken from the recent Census on our patch. The statistics for Bexhill the ONS Built Up Area definition of Bexhill, which can slightly differ by as much as 5% to other ONS population statistics.

 

 

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Which Street in Bexhill has seen the most homeowners moving in the last 3 years?

Lots of people say moving home is one of the top ten most stressful events in your life. Fortunately, there is a way to mitigate your stress. In a nutshell, start as early as you can, plan ahead and do everything you can to make it easy on yourself, your family and even the family pet. As an agent in Bexhill, my team and myself have been helping homeowners, landlords, buyers and tenants move, sell and let their Bexhill homes for many years. So I thought I would share some top tips for making your move as stress free as possible – then find out which streets in Bexhill have moved the most in the last 3 years.

The first tip is to plan ahead and write a list; because whilst it is taking between 15 and 20 weeks at the moment from finding a buyer to moving, those few weeks will fly by in no time as day to day life carries on. Next, get yourself a decent home removal company as they are worth their weight in gold on moving day – and if you need to know a good one in Bexhill – drop me a line and I will let you know who my clients are raving about.

Next, a cluttered Bexhill home doesn’t sell or let well, so maybe consider decluttering before you market the property. It will sell/let better and when it comes to the move – the job will be so much easier. Know where you plan to put all your important documents (like Passports and Bank PIN etc). Tell your utility providers and it is a good idea to create electronic copies of significant documents by scanning and saving them onto a USB stick and don’t forget to get your mail redirected.

On the day of moving home stress levels will be high and I know you will want to get everything packed away and have the tea on by 5.30pm! Those who have moved many times know that isn’t the case. Be realistic, as it’s doubtful you are going to unpack all your boxes in your new home by the end of the first day.

Make sure to keep your ‘Moving Day Survival Equipment’ close by, change of clothes, wash equipment, cold bottles of water, biscuits, kettle, tea/coffee/milk, crisps (even G&T??) to keep your spirits, morale and energy up – you will be fine.. but it will take a few days to completely unpack and get your new Bexhill home the way you would like it to be. As long as you have your bed set up and made by the end of moving day – you can have the rest of the weekend to get ship shape.

So, which street or road in Bexhill (TN39 to be more precise) has put themselves through one of the most stressful moments in their life over the last 3 years? Which street has seen the most home moves and experienced the trials of moving home.

.
Or broken down into the streets with numbers and values.

Cooden Drive comes in at the top spot, with 63 home movers in the last 36 months with a total property value of £24,323,000 sold, interestingly there are 451 properties on the road … so have a look at the top 20 and see if your street is in the Top 20! … but before you go, if you do need any help or guidance about moving home or advice about the current state of the Bexhill property market, then feel free to drop me a line or read the other articles in my blog on the Bexhill Property market.

My name is Patrick Stappleton and Im the Author of the Bexhill Property Blog. Contact me on 01424 224242 or by email at patrick@redwell-estates.co.uk

 

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The Affordability of Buying Property in Bexhill

In this week’s article on the Bexhill property market we talk about the affordability of buying a home in Bexhill since 1997 and how these changes have meant the demand for private rental properties in Bexhill will continue to grow for the foreseeable future.

The Affordability of Buying Property in Bexhill

Looking back at the 75th Anniversary of the D-Day landing a few months ago, it reminded me of the huge changes that have happened to Bexhill and more specifically the Bexhill property market since WW2. Back in 1946, the average wage in Bexhill was just over £5 a week and to buy an average car would cost you just under £600, yet this is a property blog, so…

The average value of a Bexhill property in 1946 was £1,201

In fact, in those 75 years, the average Bexhill house had doubled in price by 1961, then again in 1971, 1975, 1980, 1988, 2000 and 2006. Now a lot of those increases

(especially in the 1970’s) were caused by hyperinflation, yet since the start of the 21st Century inflation has been kept low and since the Credit Crunch (2008/9), whilst property values have been rising, they haven’t been at the rates experienced in the latter half of the 20th Century.

Now what a property sells for is irrelevant, its whether someone can afford it.

Increases in Bexhill property values have produced huge increases in equity for many Bexhill homeowners and Bexhill buy to let landlords, yet on the other side of the coin also making housing unaffordable for other people. The best measure of the affordability of housing is the ratio of Bexhill property values to Bexhill average earnings (i.e. salary/wages). The ratio works on the basis the higher the ratio, the less affordable properties are.
In 1997, the average value of a Bexhill property was 5.8 times higher than the average annual wage in Bexhill, in 2008 it peaked at 10.6, yet one year later it had dropped to 9.2 and since then has slowly risen to over 12 times higher!

Even though property in Bexhill became more affordable after the 2007/8 property crash (i.e. the ratio dropped), in subsequent years, with house values rising but earnings/salaries not keeping up, the ratio started to rise.

This has meant there has been a decline in affordability of property in Bexhill over the last five years – so for those on particularly low incomes or with little capital, it unfortunately means that buying a Bexhill home will never become an option.

Therefore, the demand for private rented properties in Bexhill will continue to grow as many young Bexhill people are deciding to rent instead of buy their own house (knowing when their parents pass away, the equity built up in their parents property will be passed down – and then they can buy in their 50’s and 60’s – just like it happens in Germany).

Yet, that is many decades away and with fewer Bexhill people wanting or able to save up the 5% deposit required by mortgage lenders, more and more people are looking to rent. Tie this in with the subtle shift in attitudes towards renting since the Millennium and less people jumping the on the bottom rung of the property ladder, this has driven rents and demand up in Bexhill over the last few years. Yet (and it’s an important proviso) the type, location and demands of Bexhill tenants has changed over that same time frame meaning you can’t just make money from buy to let as easily as falling off a log like you did in the early 2000’s.

If you are an existing landlord with us (or even another agent in Bexhill) or someone thinking of becoming a first time Bexhill landlord looking for advice and opinion and what (or not to buy in Bexhill), one source of information is the Bexhill Property Blog just click on bexhillpropertyblog.com – or drop me an email or phone call and let’s start a conversation – I don’t bite and I don’t do hard sell … and maybe, just maybe, I could help you get better returns from your property portfolio. My name is Patrick Stappleton, Author of the Bexhill Property blog. END


THE STATS. They come from the lovely Office of National Stats and they are for your local Council. The 1946 value is taking the ZPG current value of a property today in Bexhill and then taking it back 10 years to allow the seismic change in the UK figures, then applying the national change from 1946 to 2008 …

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2.6% of all Properties Sold in Bexhill are New Builds

In this week’s article on the Bexhill property market, I consider the historic effect that new homes make on the whole Bexhill property market, whether we are building enough homes and what that means for existing Bexhill homeowners and Bexhill landlords.

Of the 16,300 houses and apartments sold in Bexhill (TN39) since 1995, 570 of those have been new homes, representing 2.6% of property sold. So, I wondered how that compared to both the regional and the national picture …and from that, the pertinent questions are: are we building too many new homes or are we not building enough?

Roll the clock back a few years and in 2013 the Government expressed its disappointment that, as a Country, builders weren’t building enough new homes to house our citizens. They promised to hasten new homes building to the fastest rate since the 1980’s when the Country was building on average 168,100 private households a year. The Housing Minister stated he wanted the private sector to build in excess of 180,000 households a year, a figure which seemed unachievable at the time. In 2013, private house building was in the depths of a post Credit Crunch dip, with just 96,550 private new homes being built that year. Yet, in the five years since then, private new-build completions have climbed steadily, rising by 59.5% to 154,100 new home completions in 2018…so on appearances alone, whilst the growth is impressive, the new homes builders haven’t met their targets…. or have they?

In addition to the 154,100 new homes completions in 2018, the private sector also provided an additional 29,700 new households gained from change of use between office, industrial and agricultural buildings to residential homes meaning, last year, the private sector created 183,800 new households. When we look at the public sector, there were 30,300 Housing Association new homes and 2,950 Council houses built last year, meaning after making a few other minor adjustments, the total number of new households/dwellings created in the UK in 2018 was 222,190.

Most of the growth can be credited to an improving economic framework, though continued help for first time buyers with the Help to Buy Scheme has enabled some younger buyers to bypass the issue of saving for a large deposit for a mortgage when buying a home, thus supporting confidence among new home builders to commit to large building schemes. Yet there is more to do. The Government wants the Country to return to the halcyon days of the 1960’s where, as a Country, we were building 300,000 additional homes a year… and they want that to happen by 2025, a 36% increase from current levels.

In 2019, the country will create 257,500 households, so we are on our way to meeting that target but maintaining this level of house building will be a test. Even the Governments’ Auditors (the Office of Budget Responsibility) is predicting net additional dwellings will plateau at about 240,000 in the first few years of the next decade.

So, how does Bexhill sit within this framework?

The UK currently has 27.2m households, of which 2.45m (9%) of those have been built since 1995, whereas in Bexhill, of the 14,100 households in TN39, 570 were built since 1995 (representing 4.0% of all households), meaning Bexhill has a lower proportion of new homes building in the last couple of decades than the national figures.

I certainly feel there is an over reliance on the private sector to meet the Country’s housing needs. Local Authority’s need to step up to the plate and build more houses, and its true central government has released more cash for them to do just that, but probably only 20% to 25% of what is required. In the meantime, unless the Country starts to build 300,000 households a year, property prices will retain and improve their value in the medium to long term – which is good news for Bexhill landlords and Bexhill homeowners. What do you think about this subject? Do you agree or disagree? Let me know on patrick@redwell-estates.co.uk
Stats
The stats on new homes are from the Land Registry and Office of National Stats
Regional figures are for your postcode area e.g. TN40 would be TN40 1/ 2 postcodes for TN39 would be TN39 3/4/5 area etc.

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THE BEXHILL LOVE AFFAIR WITH ITS 1,300 TERRACED HOUSES

Call me old fashioned, but I do like the terraced house. In fact, I have done some research that I hope you will find of interest! In architecture terms, a terraced or townhouse is a style of housing in use since the late 1600’s in the UK, where a row of symmetrical / identical houses share their side walls. The first terraced houses were actually built by a French man, Monsieur Barbon around St. Paul’s Cathedral within the rebuilding process after the Great Fire of London in 1666. Interestingly, it was the French that invented the terraced house around 1610-15 in the Le Marais district of Paris with its planned squares and properties with identical facades. However, it was the 1730’s in the UK, that the terraced/townhouse came into its own in London and of course in Bath with the impressive Royal Crescent.

The majority of our Bexhill terraced houses, along with the majority of our Town Centre, was built in the Victorian era. Built on the back of the Industrial Revolution, with people flooding into the towns and cities for work in Victorian times, the terraced house offered decent liveable accommodation away from the slums. An interesting fact is that the majority of Victorian Bexhill terraced houses are based on standard design of a ‘posh’ front room, a back room (where the family lived day to day) and scullery off that. Off the scullery, a door to a rear yard, whilst upstairs, three bedrooms (the third straight off the second). Interestingly, the law was changed in 1875 with the Public Health Act and each house had to have 108ft of liveable space per main room, running water, it’s own outside toilet and rear access to allow the toilet waste to be collected (they didn’t have public sewers in those days in Bexhill – well not at least where these ‘workers’ terraced houses were built).

It was the 1960’s and 70’s where inside toilets and bathrooms were installed (often in that third bedroom or an extension off the scullery), gas central heating in the 1980’s and replacement UPVC double glazing ever since.
Looking at the make up of all the properties in Bexhill, some very interesting numbers appear.

Of the 12,699 properties in TN39 …
5,688 are Detached properties (44.7%)
2,290 are Semi Detached properties (18.0%)
1,319 are Terraced / Town House properties (10.3%)
3,390 are Apartment/ Flat’s (26.7%)

And quite noteworthy, there are 12 mobile homes, representing 0.09% of all property in Bexhill.
When it comes to values, the average price paid for a Bexhill terraced house in 1995 was £38,410 and the latest set of figures released by the land Registry states that today that figure stands at £198,610, a rise of 417% – not bad when you consider apartments in Bexhill in the same time frame have only risen by 177%.

But then a lot of buy to let landlords and first time buyers I speak to think the Victorian terraced house is expensive to maintain. I recently read a report from English Heritage that stated maintaining a typical Victorian terraced house over thirty years is around sixty percent cheaper than building and maintaining a modern house- which is quite fascinating don’t you think!

Don’t dismiss the humble terraced house – especially in Bexhill! For more thoughts on the Bexhill Property Market – visit the Bexhill Property Market Blog at www.bexhillpropertyblog.com or www.redwell-estates.co.uk or give me a call on 01424 224242 especially if you are a landlord looking to improve your portfolio.

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