In the credit crunch of 2008/9 the rate of home moving plunged to its lowest level ever. In 2009 the rate at which a typical house would change hands slumped to only once every 20 years. The biggest reason being that confidence was low and many homeowners didn’t want to sell their home as Bexhill property prices plunged after the onset of the financial crisis in 2008. However, since 2009, the rate of home moving has increased (see the table and graph below), meaning today: Continue reading “Bexhill Homeowners Are Only Moving Every 14 Years (part 2)”
As I mentioned in a previous article, the average house price in Bexhill is 11.29 times the average annual Bexhill salary. This is higher than the last peak of 2008, when the ratio was 10.48. A number of City commentators anticipated that in the ambiguity that trailed the Brexit vote, UK (and hence Bexhill) property prices might drop like a stone. The point is – they haven’t.
Now it’s true the market for Bexhill’s swankiest and poshest properties looks a little fragile (although they are selling if they are realistically priced) and overall, Bexhill property price growth has slowed, but the lower to middle Bexhill property market appears to be quite strong. Continue reading “Bexhill Home Owners Are Only Moving Every 14 Years (Part 1)”
I recently read a report by the Yorkshire Building Society that 54% of the country has seen wages (salaries) rise faster than property prices in the last 10 years. The report said that in the Midlands and North, salaries had outperformed property prices since 2007, whilst in other parts of the UK, especially in the South, the opposite has happened and property prices have outperformed salaries quite noticeably.
As regular readers of my blog know, I always like to find out what has actually happened locally in Bexhill. To talk of North and South is not specific enough for me. Therefore, to start, I looked at what has happened to salaries locally since 2007. Looking at the Office of National Statistics (ONS) data for Rother District Council, some interesting figures came out…
Rother South East Nationally
2007 £23,915 £26,120 £23,920
2008 £24,866 £27,290 £24,960
2009 £26,036 £27,903 £25,506
2010 £25,423 £28,486 £26,088
2011 £24,450 £28,839 £26,010
2012 £25,464 £28,902 £26,432
2013 £23,598 £28,995 £26,931
2014 £23,566 £29,494 £27,097
2015 £26,796 £29,895 £27,508
2016 £27,357 £30,264 £28,132
Salaries in Rother have risen by 14.39% since 2007 (although it’s been a bit of a rollercoaster ride to get there!) – interesting when you compare that with what has happened to salaries regionally (an increase of 15.87%) and nationally, an increase of 17.61%.
Next, I needed to find what had happened to property prices locally over the same time frame of 2007 and today. Net property values in Rother are 23% higher than they were in late 2007 (not forgetting they did dip in 2008 and 2009). Therefore…
Property values in the Bexhill area have increased at a higher rate than wages to the tune of 8.61% … meaning, Bexhill is in line with the regional trend
All this is important, as the relationship between salaries and property values is the basis on how affordable property is to first (and second, third etc.) time buyers. It is also vitally relevant for Bexhill landlords as they need to be aware of this when making their buy-to-let plans, for the future. If more Bexhill people are buying, then demand for Bexhill rental properties will drop (and vice versa).
As I have discussed in a few articles in my blog recently, this issue of ‘property-affordability’ is a great bellwether to the future direction of the Bexhill property market. Now of course, it isn’t as simple as comparing salaries and property prices, as that measurement disregards issues such as low mortgage rates and the diminishing proportion of disposable income that is spent on mortgage repayments.
On the face of it, the change between 2007 and 2017 in terms of the ‘property-affordability’ hasn’t been that great. However, look back another 10 years to 1997, and that tells a completely different story. Nationally, the affordability of property more than halved between 1997 and today. In 1997, house prices were on average 3.5 times workers’ annual wages, whereas in 2016 workers could typically expect to spend around 7.7 times annual wages on purchasing a home.
The issue of a lack of homeownership has its roots in the 1980’s and 1990’s. It’s quite hard as a tenant to pay your rent and save money for a deposit at the same time, meaning for many Bexhill people, home ownership isn’t a realistic goal. Earlier in the year, the Tories released proposals to combat the country’s ‘broken’ housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving bad landlords.
This is all great news for Bexhill tenants and decent law-abiding Bexhill landlords (and indirectly owner occupier homeowners). Whatever has happened to salaries or property prices in Bexhill in the last 10 (or 20) years … the demand for decent high-quality rental property keeps growing. If you want a chat about where the Bexhill property market is going – please read my other blog posts on www.bexhillpropertyblog.com or my website www.redwell-estates.co.uk or drop me note via email, like many Bexhill landlords are doing.
Moving to a bigger home is something Bexhill people with growing young families aspire to. Many people in two bedroom homes move to a three-bedroom home and some even make the jump to a four-bed home. Bigger homes, especially three bed Bexhill homes are much in demand and it can be a costly move.
If you live in Bexhill in a two-bedroom property and wish to move to a four-bedroom house in Bexhill, you would need to spend an additional £220,908 (or £872.59 pm in mortgage payments (based on the UK Bank average standard variable rate)). Continue reading “Moving from a 2 bed Bexhill Property to a 4 bed will cost you £873 pm”
I was having a lazy Saturday morning, reading through the newspapers at my favourite Blueberries coffee shop in Bexhill. I find the most interesting bits are their commentaries on the British Housing Market. Some talk about property prices, whilst others discuss the younger generation grappling to get a foot-hold on the property ladder with difficulties of saving up for the deposit. Others feature articles about the severe lack of new homes being built (which is especially true in Bexhill!). A group of people that don’t often get any column inches however are those existing homeowners who can’t move! Continue reading “23.4% Drop in Bexhill People Moving Home in the Last 10 Years”
The most recent set of data from the Land Registry has stated that property values in Bexhill and the surrounding area were 7.88% higher than 12 months ago and 19.52% higher than January 2015.
Despite the uncertainty over Brexit as Bexhill (and most of the UK’s) property values continue their medium and long-term upward trajectory. As economics is about supply and demand, the story behind the Bexhill property market can also be seen from those two sides of the story.
Looking at the supply issues of the Bexhill property market, putting aside the short-term dearth of property on the market, one of the main reasons of this sustained house price growth has been down to of the lack of building new homes. Continue reading “Supply and Demand Issues mean Bexhill Property Values Rise by 7.8% in the Last 12 Months”
As the dust starts to settle on the various unread General Election party manifestos, with their ‘bran-bucket’ made up numbers, life goes back to normal as political rhetoric on social media is replaced with pictures of cats and people’s lunch. Joking aside though, all the political parties promised so much on the housing front in their manifestos, should they be elected at the General Election. In hindsight, irrespective of which party, they seldom deliver on those promises. Continue reading “Bexhill Property Market and Mysterious Politics of the General Election”
The good old days of the 1970’s and 1980’s eh … with such highlights lowlights as 24% inflation, 17% interest rates, 3 day working week, 13% unemployment, power cuts … those were the days (not)… but at least people could afford to buy their own home. So why aren’t the 20 and 30 something’s buying in the same numbers as they were 30 or 40 years ago?
Many people blame the credit crunch and global recession of 2008, which had an enormous impact on the Bexhill (and UK) housing market. Predominantly, the 20 something first-time buyers who, confronting a problematic mortgage market, the perceived need for big deposits, reduced job security and declining disposable income, discovered it challenging to assemble the monetary means to get on to the Bexhill property ladder.
However, I would say there has been something else at play other than the issue of raising a deposit – having sufficient income and rising property prices in Bexhill. Whilst these are important factors and barriers to home ownership, I also believe there has been a generational change in attitudes towards home ownership in Bexhill (and in fact the rest of the Country).
Bexhill is already in the clutches of a population crisis that has now started to affect the quality of life of those living in Bexhill. There are simply not enough homes in Bexhill to house the greater number of people wanting to live in the town. The burden on public services is almost at breaking point with many parents unable to send their child to their first choice of primary or secondary school and the chances of getting a decent Dentist or GP Doctor Surgery next to nil.
To start with, the UK has roughly 1,065 people per square mile – the second highest in Europe. The total area of Bexhill itself is 4.645 square miles and there are 42,000 Bexhill residents, meaning …
9,100 people live in each square mile of Bexhill, it’s no wonder we appear to be bursting at the seams!
A square mile is enormous, so the numbers look correspondingly large (and headline grabbing). Most people reading this will know what an ‘acre’ is, but those younger readers who don’t, it is an imperial unit of measurement for land and it is approximately 63 metres square.
In Bexhill, only 12.99 people live in every acre of Bexhill. Not as headline grabbing, but a lot closer to home and relative to everyday life, and if I am being honest, a figure that doesn’t seem that bad.
Yet, the issue at hand is, we need more homes building. In 2007, Tony Blair set a target that 240,000 homes a year needed to be built to keep up with the population growth, whilst the Tory’s new target since 2010 was a more modest 200,000 a year. However, since 2010, as a country, we have only been building between 140,000 and 150,000 houses a year. So where are we going to build these homes because we have no space! Or do we?
Well, let me tell you this fascinating piece of information I found out recently in an official Government report. Looking specifically at England (as it is the most densely populated country of the Union), all the 20 million English homes cover only 1.1% of its land mass.
- Residential Houses and Flats 1.1%
- Gardens 4.3%
- Shops and Offices 0.7%
- Highways (Roads and Paths) 2.3%
- Railways 0.1%
- Water (Rivers /Reservoirs) 2.6%
- Industry, Military and other uses 1.4%
.. leaving 88.5% as Open Countryside (and if you think about it, add to that the gardens, which are green spaces, and the country is 92.8% green space)
As a country, we have plenty of space to build more homes for the younger generation and the five million more homes needed in the next 20 years would use only 0.25% of the country’s land. Now I am not advocating building massive housing estates and 20 storey concrete and glass behemoth apartment blocks next to local beauty spots such as Egerton Park, but with some clever planning and joined up thinking, we really do need to think outside the box when it comes to how we are going to build and house our children and our children’s children in the coming 50 years in Bexhill. If anyone has their own ideas, I would love to hear from you.
In the meantime, if you would like to read other articles about Bexhill Property Market, please visit the Bexhill Property Market Blog at www.bexhillpropertyblog.com