Bexhill ‘Home Owning’ Movers and Shakers in 2018

It’s now commonly agreed amongst economists and the general public that the dramatic rise in Bexhill property prices of the last six years has come to an end.

Read the National newspapers, and they talk of doom and gloom in the British housing market with such things as strained buyer affordability (as property prices have increased over the past six years at a far faster pace than average salaries), a lack of new properties being built and the Brexit uncertainties over the last two and half years being blamed for the slow down – yet in the last 12 months, people have still been moving, buying and selling in Bexhill at levels similar to the last six years – something tells me we have a case of ‘bad news selling newspapers’.

So instead, let me share with you what, exactly, is happening in the Bexhill property market, and more specifically, who is moving and why in Bexhill. Most of the sales in Bexhill over the past twelve months were flats, which on average sold for £169,000 with detached properties having an average sold price of £386,550 and semi-detached properties averaged at £277,600.

In Bexhill, in the homeowner sector in 2018 (i.e. owner occupation), 362 households moved within the tenure (i.e. sold the home they owned and bought another one) and 71 new households were created (i.e. they moved from living with family/friends and bought their first home without privately renting).

What does this mean for Bexhill buy to let landlords? Well looking at the graph, it appears bad news for landlords. There were 169 households that moved into the home owning (owner occupation) tenure from the private rented sector, whilst on the other side of the coin, 133 Bexhill households moved to the private rented sector from owner occupation … which appears on the face of it, a reduction in the private sector.

My research has calculated that in 2018, an additional 176 new households in the Bexhill private rental sector were created

…and it will continue to grow at those levels for the foreseeable future.

I have one final thought and opportunity for you Bexhill property investors. 87 owner occupied households in Bexhill sold in last year where the homeowners had passed away. These properties can be a potential goldmine and offer great returns. The reason being is some members of the older generation who have owned these homes for decades have spent money on high capital items (double glazing / central heating etc.) but not spent money on more superficial low-ticket items such as up to date carpets, kitchen, bathroom and decorating (vital if you want to sell your property for top dollar). These properties can often be bought cheaply because most buyers can’t see past the avocado or brown bathroom suite from the 1970’s and the dated decor, so if you were to buy wisely and do the works, you could sell it on for a healthy profit.

So, whatever is happening in the world with Brexit, Trump, China, and the Stock Market … the Bexhill housing market is in decent shape for the medium to long term. If we do have small corrections in values in the next 12 to 18 months, in the long term, house prices have always returned … and returned with vengeance. Like I say to anyone buying a property, be they a first-time buyer, landlord or homeowner … property is a long game … and if you play the long game, you will always win (although isn’t that true in most aspects of life?). Pause for thought don’t you think?  Best wishes, Patrick Stappleton, Author of the Bexhill Property Blog.

Drop me a line at patrick@redwell-estates.co.uk or call my office at 01424 224242 and we can discuss this further. Kind regards, Patrick Stappleton, author of the Bexhill Property Blog.com, Managing Director of Redwell Estates.

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Top 25 Most Saleable Streets in Bexhill

Following on from my lastarticle, if you recall I said that Cooden Drive had the most properties sold in the TN39 Bexhill postcode, yet I felt that this information wasn’t telling the whole story, as some roads in Bexhill have more properties on them than others.Therefore, I promised that I would compare the average number of properties sold by the actual number of properties on that street, to find out the streets whose owners proportionally moved (or sold) more often than the rest of the locality.

To give some foundation to the article, in 2017 Bexhill homeowners had, on average, lived at their existing address for 17 years and 6 months.

However, when I looked at thedifference between homeowners with and without a mortgage; Bexhill homeownerswithout a mortgage had lived in their Bexhill home for an average of 23 yearsand 9 months compared with 10 years and 1 month for homeowners with a mortgage.

Interestingly, Bexhill’s Rother Council house tenants have on average resided at their present home for 11 years and 4 months, whilst finally for those who rent from a private landlord, tenants generally have lived in their property for an average of 3 years and 11 months (up from 3 years 5 months only five years ago).

The TN39 street in the top 25 saleable streets with the highest number of households on it is London Road, which has 514 residential addresses. Yet since 1995, only 272 properties have changed hands (some multiple times!)  .. which means the street’s saleability or churn rate is 52.9%?

However, the street or road that has the highest saleability or churn rate is Terminus Road … which has 80 households on it, yet since 1995 there have been 130 house sales … a saleability rate of 162.5%. Here is the full breakdown of the top 25 streets …

So, as you can see, some interesting statistics and a lot more correlation between saleability rate and property values (unlike the article last time where we compared value to ‘out and out’ raw sales figures).

Therefore, what does this all mean to Bexhill homeowners and Bexhill landlords?  Well these 25 streets are the best performing streets out of the 373 streets in the Bexhill (TN39) area so if you live/own a property on those 25 streets … you are sitting on a very saleable street. If you want to find out how saleable your street is … please drop me a line at patrick@redwell-estates.co.uk or call my office at 01424 224242 and we can discuss this further. Kind regards, Patrick Stappleton, author of the Bexhill Property Blog.com, Managing Director of Redwell Estates.

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Cooden Drive, Bexhill… …the road where people move the most

Many folks say moving home is the most stressful thing. Moving home is like someone (and that someone is usually you and you are the cause of this devastation) has collected all your worldly goods, put them into brown boxes and into a lorry making your whole life look like a Amazon delivery van, only to spend the next six months unpacking it all, whilst unable to find important things like your bank cards, Continue reading “Cooden Drive, Bexhill… …the road where people move the most”

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Bexhill First Time Buyers Need 10.8 Times Annual Salary to Get on Housing Ladder

What is it to be British? Our stubbornness, long-suffering stoicism, our vexation at injustice, our obsession with football and rugby, we are weather obsessed external awkward noncommittal modest people whilst underneath seething like a volcano because someone jumped the queue…. and our No.1 obsession is with the property ladder.

This ‘love affair’ with owning our own home has been both good and bad for the UK as a whole; giving people financial freedom in their later years whilst also reducing the quantity (and quality) of housing provision whilst adding the extra pressure of a ‘them and us’ society. Strong words I know .. but let me explain more.

I honestly believe that most Governments since the end of the 1970’s, Conservative and Labour, have attempted to nourish our addiction to home ownership (to keep the housing market on track) with the Council House Right to Buy sell off in the 1980’s, tax relief of mortgages, relaxation of the mortgage rules in the late 1990’s/early 2000’s and most recently, the Help to Buy scheme.

But the Brits haven’t always had this obsession.

Roll the clock back 100 years and, in 1918, just under a quarter of all Brits owned their own homes and the other 77% rented. Go back 50 years to 1968, and only 46% of people owned their own home, the rest rented. This homeownership thing is quite a recent phenomenon.

According to my research, anyone looking to get a foot onto the property ladder as a first-time buyer in Bexhill today, AS A SINGLE PERSON, would need to spend 10.8 times their earnings on a Bexhill first time buyer property.

Using the numbers from the Office of National Statistics (ONS), the average value of a first-time buyer property in Bexhill today is £193,000, compared to £151,200 in 2007. If we divide those property values by the average annual earnings of first time buyers – in 2007, that was £14,753 pa and that has risen to £17,892 pa … giving us the ratio of 10.8 to 1.

However, what must be remembered is that these are raw statistics from the ONS and don’t take into account other factors, like most people buy their first home as a couple. Also, mortgage rates are at an all-time low and who can remember mortgage rates of 15%+ in the 1990’s, meaning borrowing today is relatively cheap. Also, 95% Loan to Value first time buyer mortgages have been available since the end of 2009 (i.e. you only need to save a 5% deposit) and first time buyer rates of 2.19% fixed for 5 years can be obtained (correct at time of writing this article)… it is cheaper to buy than rent .. fact!

I believe there has been a mind-set change to owning a home. Home ownership was the goal of the youngsters in the latter half of the 20th century. Britain is changing to a more European model of homeownership, where people rent in early to mid-life, wait to inherit the money from their parents when in their 50’s and then buy… thus continuing the circle – albeit in a different way to the last Century.

This means the demand for privately rented accommodation will, in the long term, only continue to grow. If you would like to know more about where the hot spots are for that growth in Bexhill, then one place would be my property blog www.bexhillpropertyblog.com/ or if you want to drop me an email at patrick@redwell-estates.co.uk or telephone me on 01424 844081, feel free to pick my brain on the best places to buy (and not to buy) in Bexhill to ensure your rental investment gets you want you want. The choice is yours!
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How Would a Hard Brexit Affect Bexhill House Prices?

I have been asked several times recently what a hard Brexit would mean to the Bexhill property market. To be frank, I have been holding off giving my thoughts, as I did not want to add fuel to the stories being banded around in the national press. However, it’s obviously a topic that you as Bexhill “buy to let” landlords and Bexhill homeowners are interested in … so I am going to try and give you what I consider a fair and unbiased piece on what would happen if a hard Brexit takes place in March 2019.

After the weather and football, the British obsession on the UK property market is without comparison to any other country in the world. I swear The Daily Mail has the state of the country’s property market on its standard weekly rotation of front-page stories! Like I have said before on my blog, there are better economic indexes and statistics to judge the economy (and more importantly) the property market. If you recall, I said the number of transactions was just as important, if not more, as a bellwether of the state of the property market.

Worries that the Brexit referendum would lead to a fast crash in Bexhill (and national) property values were unfounded, although the growth of property values in Bexhill has reduced since the referendum in the summer of 2016.

Now, it’s true the Bexhill property market is seeing less people sell and move and the property values are rising at a slower rate in 2018 compared to the heady days of the first half of this decade (2010 to 2015), but before we all start panicking, let’s ask ourselves, what exactly has happened in the last couple of years since the Brexit vote?

Rother and Bexhill house prices have risen by 13.71% since the EU Referendum…

…and yes, in 2018 we are on track (and again this is projected) to finish on 1,948 property transactions (i.e. the number of people selling their home) … which is less than 2017 … but still higher than the long term 12-year average of 1,911 transactions in the local council area.

So, it appears the EU vote hasn’t caused many major issues so far, however, if there was a large economic jolt, that could be a different game, yet how likely is that?

The property market is mostly influenced by interest rates and salaries.

A hard Brexit would subdue wage growth to some degree, yet the level of the change will depend on the undetermined type of Brexit deal (or no deal). If trade barriers are imposed on a hard Brexit, imports will become more expensive, inflation will rise, and growth will fall, although at least we are not in the Euro, meaning this could be tempered by the exchange rate of the Pound against the Euro. In plain language, a hard Brexit will be worse for house prices than a deal.

So why did the Governor of the Bank of England suggest a disorderly hard Brexit would affect house prices by up to 35%?

I mean it was only nine years ago we went through the global financial crisis with the credit crunch. Nationally, in most locations including Bexhill, property values dropped in value by 16% to 19% over an 18-month period. Look at the graph and if we had a similar percentage drop, it would only take us back to the property value levels we were achieving in 2015.

And let’s not forget that the Bank of England introduced some measures to ensure we didn’t have another bubble in any future property market. One of the biggest factors of the 2009 property crash was the level of irresponsible lending by the banks. The Bank of England Mortgage Market Review of 2014 forced Banks to lend on how much borrowers had left after regular expenditure, rather than on their income. Income multipliers that were 8 or 9 times income pre-credit crunch were significantly curtailed (meaning a Bank could only offer a small number of residential mortgages above 4.5 times income), and that Banks had to assess whether the borrower could afford the mortgage if interest rates at the time of lending rose by three percentage points over the first five years of the loan … meaning all the major possible stumbling blocks have been mostly weeded out of the system.

So, what next?

A lot of Bexhill homeowners might wait until 2019 to move, meaning less choice for buyers, especially in the desirable areas of Bexhill. For Bexhill landlords, Bexhill tenants are also likely to hang off moving until next year, although I suspect (as we had this on the run up to the 2015 General Election when it was thought Labour might get into Government), during the lull, there could be some Bexhill buy to let bargains to be had from people having to move (Brexit or No Brexit) or the usual panic selling at times of uncertainty.

Brexit, No Brexit, Hard Brexit … in the whole scheme of things, it will be another footnote to history in a decade. We have survived the Oil Crisis, 20%+ Hyperinflation in the 1970’s, Mass Unemployment in the 1980s, Interest Rates of 15% in 1990’s, the Global Financial Crash in 2009 … whatever happens, happens. People still need houses and a roof over their head. If property values drop, it is only a paper drop in value … because you lose when you actually sell. Long term, we aren’t building enough homes, and so, as I always say, property is a long game no matter what happens – the property market will always come good.

Growth in UK property values as well as in Bexhill seems fated to slow over the next five to ten years, whatever sort of Brexit takes place. If you are worried about the value of your property and whether Brexit will have an effect on your property, give me a call on 01424 844081, Im Patrick Stappleton, Author of the bexhillpropertymarketblog.com

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Bexhill First Time Buyers Need 10.8 Times Annual Salary to Get on Housing Ladder.

What is it to be British? Our stubbornness, long-suffering stoicism, our vexation at injustice, our obsession with football and rugby, we are weather obsessed external awkward noncommittal modest people whilst underneath seething like a volcano because someone jumped the queue…. and our No.1 obsession is with the property ladder. Continue reading “Bexhill First Time Buyers Need 10.8 Times Annual Salary to Get on Housing Ladder.”

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Bexhill House Prices vs Bexhill Rents since 2006

The Bexhill housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the Country. Continue reading “Bexhill House Prices vs Bexhill Rents since 2006”

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Bexhill Property Market: Is Sell to Rent the new Buy to Let?

It doesn’t seem two minutes ago that it was 90 degrees Fahrenheit in the shade (32 degrees Celsius for my younger readers), hosepipe bans looked likely and it was simply too hot to sleep at night, yet early indications were, that as the temperatures soared, Continue reading “Bexhill Property Market: Is Sell to Rent the new Buy to Let?”

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Great(er) Expectations: Why Bexhill Home Sellers are Having to Reduce Their Asking Prices by an Average of £16,700 Each

As we leave the memorably hot summer behind us, some interesting statistics have come to light on the Bexhill Property Market which will be thought provoking for both homeowners and buy to let landlords alike.

Over the last 12 months 879 households have changed hands in Bexhill, interesting when compared with the 10-year average of 927 households per year. Continue reading “Great(er) Expectations: Why Bexhill Home Sellers are Having to Reduce Their Asking Prices by an Average of £16,700 Each”

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7 Reasons Why Bexhill Buy To Let Landlords Shouldn’t Be Criticised

There is no escaping the fact that over the last couple of decades, the rise in the number buy to let properties in Bexhill has been nothing short of extraordinary. Many in the “left leaning” press have spoken of a broken nation, the fact many youngsters are unable to buy their first home with the rise of a new cohort of younger renters, whom have been daubed ‘Generation Rent’ as landlords hoover up all the properties Continue reading “7 Reasons Why Bexhill Buy To Let Landlords Shouldn’t Be Criticised”

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