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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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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Bexhill Property Market Do We Have the Right Sort of Bexhill Homes For the 21st Century?

Here I talk about the type of properties that are currently built in Bexhill, whether we’re building the right sort of properties to meet the current levels of demand in Bexhill and what the future holds for both landlords and homeowners in Bexhill with this information.

Would it surprise you to know that in some parts of Bexhill, predominantly prosperous areas with high proportions of mature residents, the housing crisis is not one of supply so much as dispersal of that supply? Theoretically, in Bexhill there are more than enough bedrooms for everyone – it’s just they are disproportionately spread among the population, with some better-off and more mature households living in large Bexhill homes with many spare bedrooms, and some younger Bexhill families being over crowded.

Yet it is not the fault of these well-off mature residents that this is the current situation. Let’s be frank, Bexhill doesn’t have enough housing full stop (otherwise we wouldn’t have the large Council House waiting list and all the younger generations renting instead of buying), but up until now it hasn’t been clear that Bexhill actually also has the wrong types of properties.

We’re not building the smaller homes in Bexhill that are needed for the starter homes and we aren’t building enough bungalows for the older generations, so they can be released from their larger Bexhill homes, thus allowing those growing Bexhill families to move up the ladder.

Looking at the stats for Bexhill, and TN39 in particular…

When I compared Bexhill (TN39) with the regional stats of the TN postcode, the locality has proportionally 53.7% more apartments, yet 45% less terraced/townhouses. Looking nationally, Bexhill (TN39) has proportionally 90.2% more detached homes and quite surprisingly, proportionally 58.2% less terraced/townhouses.

I am finding that there has been a shortage of smaller townhouses and smaller apartments being built in Bexhill over the last 20 years, because most of the new builds in the last couple of decades seem to have been either large executive houses or the apartments that have been built were of the larger (and posher) variety, even though demand for households (as life styles have changed in the 21st Century) have been more towards the lower to middle sized households.

The builders do want to build, but there’s a deficiency of building land in Bexhill, and if there’s a shortage of building land, then of course new homes builders build whatever gives them the biggest profit. The properties that give them the largest profit are the biggest and most expensive properties and they certainly are not bungalows as they take up too much land. So who can blame them?

Yet would it surprise you to know that it’s not a lack of space (look at all the green you see when flying over the UK), it’s the planning system. Green belts must be observed, but only 1.2% (yes 1.2% – that isn’t a typo) is built on in this country as a whole with homes – we need the planners to release more land (and then force/encourage builders to build on it – not sit on it). Another problem is that of the smaller new homes that have been built, most of them have been snapped up for renting, not owning.

So, what’s the answer? Build more Council houses? Yes, sounds great but the local authority haven’t enough money to cut the grass verges, let alone spend billions on new homes in Bexhill. The Government did relax the planning laws a few years ago, for example for changing office space into residential use, yet they could do more as currently new homes builders have no incentive to build inexpensive homes or bungalows that the system needs to make a difference.

So, what does this mean for Bexhill homeowners and Bexhill landlords?

Changing the dynamics of the Bexhill, regional and national property market will only change in decades, not years. The simple fact is we are living longer, and we need 240,000 to 250,000 houses a year to stand still with demand, let alone start to eat into 30 years of under building where the average has been just under 170,000 households a year.

That means, today as a country, we have a pent-up demand of 2.25m additional households and we need to build a further 4.2m households on top of that figure for population growth between 2019 and 2039. So, irrespective of whether we have short term blip in the property market in the next 12/18 months, investing in property is, and always will be, a great investment as demand will always outstrip supply.

What do you think? Let me know and Ill pass it on because Bexhill will alter over the next 20 years and become unrecognisable to the Bexhill of today. For more news about the property market in Bexhill go to my website www.redwell-estates.co.uk or www.bexhillpropertyblog.co.uk, theres lots of interesting topics to choose from.

This is Patrick Stappleton Author of the Bexhill Property Market Blog and MD of Redwell Estates. My email is patrick@redwell-estates.co.uk and my phone is 01424 224242. 

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31% more homes for sale in Bexhill than a year ago


One of the key factors of the health of the Bexhill property market is the number of properties for sale at any one time.

The issue with housing is that when demand goes up, unlike with a chocolate bar factory, that can add a couple of hours overtime to increase its supply/production to satisfy demand, it takes a good 18 months to two years from planning permission to someone moving into a new home.

I have talked at length (and proved) in previous articles that we are still not building enough homes in the long term in the Bexhill area. Yet for the short term, a good indicator is the number of properties for sale and how long they have been on the market.

How long a property has been on the market is important as a guide to how the property market is performing – potential buyers can always find this information on the Rightmove and Zoopla listings (if you don’t know where – drop me an email or message and I can let you know).

So, let’s have a look at what is happening in Bexhill, both in terms of the number of properties for sale and how long they have been on the market compared to a year ago, then discuss what that means for the current state of play of the Bexhill property market.

So, to start, let’s look at the number of properties for sale in Bexhill compared to a year ago.

Interestingly, you can see there has been a proportional increase of 89% in terraced properties on the market in Bexhill, yet only a 3% increase in apartments. Overall in the last year there are 31% more properties on the market in Bexhill, compared to a year ago. Now, let’s look how long they have been on the market ..

Interesting to see that the biggest jump in the number of days on the market is terraced houses, from 62 days to 86 days … demand and supply working again. Also, the length of time an average Bexhill property has been on the market has increased by 10% in the last year.

So, what does this all mean for Bexhill Buy To let landlords and Bexhill homeowners looking to buy and sell? Well, if you are thinking of selling, as the number of properties on the market has increased and the length of time Bexhill properties are on the market has also increased – you have to be mindful that realistic pricing is the key to get the property sold. If you are a buyer, that means you find yourself in a better position to negotiate a good deal on your Bexhill property purchase.

There is an argument to suggest that property buyers see excessive days on the market as an indication that the seller is becoming desperate to sell because the property hasn’t sold. Buyers are also mindful to believe that there might be something wrong with the home, a defect that caused other buyers to pass it up. This can concern them when they view the property – if they view it at all, as that possible and perhaps made-up defect is on their minds, even if it is sub-consciously.

Normally, both assumptions are wrong. A property can loiter on the market for several reasons. The most common reason for a property sticking on the market is overvaluing or overpricing. In an effort to get the property on the market, some estate agents may have convinced the seller into believing the property was worth more than the property market will bear.

Don’t get me wrong, if you don’t ask, you don’t get and homeowners naturally want to get the best price for their home, and so test the market. Yet, if you aren’t getting a steady stream of viewers after a few weeks, then that testing can backfire. You see, by setting the asking price too high to see if they can find someone to pay that inflated price, then finding there is nobody in the market that will pay the price, here lies the biggest trap for house sellers on keeping the inflated asking prices for too long.

Sellers can also get stuck on an asking price and they are willing to wait out the market until it catches up to what they want for their property – yet we aren’t in that type of property market now. Consumer champion “Which” said that if you have to reduce your asking price by 5% or more, it adds an extra 64 days to the sales process meaning you might lose the property of your dreams.

Also, I have seen countless times, house sellers insist on an inflated asking price, reduce 12 weeks later, yet buyers think there is something wrong with it so the homeowner gets fed up and accepts a lower offer to get the property sold, whereas if the house seller had gone onto the market at the right asking price, they would get much nearer to what they deserve for their property.

So, if you are looking for a bargain to buy – all the Portals (Rightmove, Zoopla and On the Market) allow you to search and sort by the length of time on the market as well as the asking price. Who knows – there could be a bargain waiting for you!

If you would like to discuss the worth of your property and how my team can help you, call us on 01424 224242. For more articles go online to www.bexhillpropertyblog.com. Kind regards Patrick Stappleton.

END

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Unemployment – the Secret Driver of the Bexhill Property Market?

If you have been reading my articles on the Bexhill property market recently, you will see that in the three years since the referendum of the ‘B’ word (that word is banned in our household), we have proved beyond doubt that it (whose name shall remain nameless) has had no effect on the Bexhill property market (or the UK as a whole).

So, one might ask, what does affect the property market locally? Well many things on the demand side include wages, job security, interest rates, availability of mortgages, confidence in the economy, inflation, speculative demand … the list goes on. Yet as my blog readers will note, I like to delve deeper into the numbers and I have found an interesting correlation between unemployment and the number of properties sold (i.e. transactions).

Why transaction levels and not house prices? Well just looking at Bexhill house prices as a bellwether has flaws. Many property market commentators and economists believe transaction numbers (the number of properties sold) give a more accurate and candid indicator of the health of the property market than just house values alone.

The reason is twofold. First most people when they sell also buy, so if property values have dropped by 10% or risen by 10% on the one you are selling, it would have done the same on the one you are buying – meaning to judge the health of a property market is very one dimensional. Secondly, the act of moving is very much a human thing. Property habitually conveys a robust emotional connection with homeowners – a connection that few would attribute to their other investments like their savings or stock market investments.

Moving home could be described as a human enterprise, moving from one chapter of one’s life to another. When people move home, it shows they are moving forward in their lives and so this gives a great indicator of the health of the property market.

Looking at Rother’s figures on the graph, you can see an inverse relationship between unemployment and housing transaction levels.

Property transactions in Bexhill dropped by 44.81%, whilst unemployment in Bexhill rose by 28.81% during the 2007 to 2009 Global Financial Crash.  There is clearly a relationship between conditions in the Bexhill job market and the number of people who move home … interesting don’t you think?

Now I am not saying unemployment is the only factor influencing the Bexhill property – but it must be said there is a link.

As a country (and indeed here in Bexhill) over the last 40 years, we have seen a shift in the outlook over the purpose of housing and the development of the religion of following house prices (and I appreciate the irony of me writing these articles on Bexhill – feeding that habit!) Yet, when did owning a home turn from buying a roof over your head to an out and out investment vehicle?

I do wish people would stop fretting about their intrinsic value being associated with their Bexhill home. Now of course, I am not dismissing the current levels of Bexhill house prices – we just must take into consideration other metrics alongside them when judging the health of the property market locally.

One final thought, looking on a broader scale in the UK, those towns and cities whose property markets bounced back after the Global Financial Crash had high levels of employment and low unemployment whilst places with high unemployment and relatively low employment have, on the other hand, typically underperformed.

So, the next time you are considering a house move or buying a buy to let property in Bexhill … don’t make your judgement on house price growth alone.

Now if you would like to discuss this topic in more details give me a call on 01424 224242 or send me an email on patrick@redwell-estates.co.uk. Hope you enjoyed reading it.  Best wishes Patrick Stappleton Author of the Bexhill Property Blog.com
END

Statistics taken from.
Unemployment stats – ONS.

Property Sales – Land Registry

 

 

 

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Which Bexhill Properties are Selling the Best?

Moving home is said to be the third most stressful life event, following a member of your family dying or getting divorced. So it is always best to keep your stress levels down by investigating and doing your homework on both the particular area of Bexhill (or nearby conurbations) where you live (i.e. where you are selling) and where you want to search for your next Bexhill home. Being mindful of how fast (or slow) the different aspects of the Bexhill property market is moving is key.. because it could save you much heartache and many thousands of pounds.

You see, if you know you are selling a property in a sluggish price range and buying in a faster moving price range in Bexhill then putting your property on the market first is vital, otherwise you will always find the one you want to buy tends to sell before your property sells – there is nothing worse than pondering over a property only to find that someone else has bought it. Being primed with all the knowledge is key. On the other side of the coin, if you are selling in a fast moving market and buying in a sluggish market .. you can probably get a better deal on the one you are buying.

For buy to let landlords in Bexhill, this evidence is particularly critical as purchasing a high-demand property in a well-liked area of Bexhill will safeguard a surfeit of availability of tenants, as well as respectable house price growth. 

Being an agent in Bexhill, I like to keep an eye on the Bexhill property market on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Bexhill; be that a buy to let property for a landlord or an owner occupier house.  So, I thought, how could I scientifically split the Bexhill housing market into sections, so I could analyse which part of the Bexhill property market was doing the best (or the worst).

I took the decision that the preeminent way was to fragment the Bexhill property market into roughly four uniform size price bands (in terms of properties for sale). Each price band would have roughly around 25% of the property in Bexhill available for sale .. then add up all the sold (stc) properties and see which sector of the Bexhill property market was performing best? … And these were the results ..

It’s not unexpected that the upper end of the property market (the top 25%) in Bexhill is finding things a little tougher compared to the others. Remarkably for Bexhill landlords, the lower market is doing reasonably well, but it’s not the best, so maybe there could be some property deals out there for buy to let investment? Even though the number of first time buyers in 2018 did increase over the 2017 levels, it was from a low starting point and the large majority of 20 to 30yo’s don’t want to or can’t buy their first home and the local authority has no money to build Council houses meaning an increase in demand as private landlords take up the slack – because everyone needs a roof over their head!

If you would like to pick my brains on the Bexhill Property Market – pop in for a coffee or drop me a line on social media or email.

The best performing price range in Bexhill is the lower to middle market £190,000 to £280,000 where 43.1% of all property in that price range has a buyer and is sold stc. There are plenty of articles here for you to read and catch up on the Bexhill Property Market or if you want a chat, call me on 01424 224242.

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Home Ownership among Bexhill young people has nearly halved in 20 years

The proportion of 25 to 34-year olds who own their home in Bexhill has nearly halved in the last 20 years, so what does this mean for all the existing Bexhill landlords and homeowners together with all those youngsters considering buying their first home?

Well, looking at the numbers in greater detail, in Bexhill there has been a 43.5% proportional drop in the number of 25 to 34-year olds owning their own home between 1999 and 2019 .. and a corresponding, yet smaller drop of 21.2% of 35 to 44-year olds owning their own home over the same time frame.

So, if you were born in the late 1980’s or early 1990’s, the dream of owning a home in Bexhill has reduced dramatically over the past 20 years as young adults’ wages and salaries are now much lower in relation to Bexhill house prices. Nationally, average property values have grown by 186.9%, whilst average incomes have only risen by 44.8%, yet that doesn’t allow for inflation. However, whilst not over the same 20 years (it’s close enough though), the Institute of Fiscal Studies said recently the average British home was just over 2.5 times higher in 2015/6 than in 1995/6 after allowing for inflation; yet the average household income (after tax) of 25 to 34-year olds grew by only 22% in ‘real-terms’ over those 20 years.

Yet, even though property prices are at record highs, on the other side of the coin, the monthly cost of mortgage payments has actually fallen because interest rates have remained low. In 1999, the average mortgage rate paid by UK homeowners was 6.54% whilst today it’s more than halved to 2.64% – a drop of 59.4%. Many of you reading this will remember the 15% mortgage rates of 1992!

The fact is, mortgage repayments take up a considerably smaller proportion of take home pay, on average, than they did before the Credit Crunch or in the late 1980’s. Although the risk that mortgage rates will increase if the Bank of England put up interest rates might leave some homeowners in a difficult position – hence I might suggest (if you haven’t already) you seriously consider fixing your mortgage rate (remember to take advice from a professional before you do).

Yet look at the data in even greater detail and you will see, going back

to the 1960’s, we weren’t always the huge homeowning nation we always thought we were.

Today, 4.5% less 35 to 44-year olds and 33.5% more 45 to 54-year olds own their own home compared to 1969. So as the younger generation in Bexhill has seen homeownership drop in the medium term, they will in fact end up inheriting the homes of their parents. We are turning into a more European (especially German) model of homeownership, where people buy their first home in their 50’s instead of their 20’s.

My message to first time buyers of Bexhill is go and get some mortgage advice!  The cost of renting smaller starter homes is between 20% and 25% more than the mortgage payments would be. 95% mortgages (meaning a 5% deposit is required) have been available since late 2009 and some banks even do 100% mortgages (i.e. no deposit) .. I suggest that you don’t assume you can’t get a mortgage – for the sake of a 45 minute chat with a mortgage adviser – you get a straight answer and all the information you need.

Therefore, what does this mean for homeowners and landlords of Bexhill? Well, for many tenants, renting is a positive choice and as we aren’t building enough homes to meet current demand, let alone eating into the lack of building over the last 35 years, demand will outstrip supply, home values will, over the medium to long term, rise above inflation – meaning it will be a good overall investment as demand for rental properties increases. Good news for Bexhill landlords and Bexhill homeowners alike.

The single biggest issue in the Country (and Bexhill) today is that we aren’t building enough homes. I know it seems the local area is covered with building sites – yet looking at the actual numbers – we still aren’t building enough homes to live in. Residential property only takes up 1.2% of all the land in the Country – and whilst I’m not suggesting we build housing estates on National Trust land or cut down forests, until we realize that we aren’t building enough .. this issue will only continue to get worse.

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