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Price Reductions – When? How? Why?

Posted on 11/10/202404/07/2025 by prateek

Did you know that 1 in 10 Home Sellers in Bath Lower Their Asking Price Every Month?

As the property market continues to evolve here in the city of Bath, it is important for estate agents such as ourselves to better understand the complexities of the market. For readers, it is also important you keep up-to-date with all the going on in our property market. This can be easily achieved by following our blog, and our social media channels.

Recently, homeowners in Bath who have found themselves on the market for a long period of time are navigating the complex decision of how and when to reduce their asking prices to better attract a buyer.

With an increasing number of properties coming to the market here in Bath (1,217 on the market in August 2024) the competition is becoming increasingly competitive meaning strategic price adjustments are more crucial than ever.

MASTERING PROPERTY PORTAL PRICE BANDS FOR OPTIMAL EXPOSURE

Understanding and utilising property price bands on the ‘portals’ (Rightmove, Zoopla, OnTheMarket) can significantly enhance the visibility of your property listing. These bands are predefined price ranges buyers often use to filter their search results. Positioning your property’s asking price in one of these bands will strategically draw in more views and therefore there will be more interest in your property, which in turn will lead to more viewings and ultimately increase your chance of selling your property.

For instance, pricing at £300,000 instead of £295,950 will place your property in a filtered search of properties between £280,000 – £300,000 & £300,000-£320,000 so you will have a chance at attracting a broader audience.

THE IMPORTANCE OF RIGHTMOVE ALERTS

A critical factor in the timing of price reductions is their impact on buyer visibility. Homeowners need to reduce their asking price by at least 2% to ensure their property reappears in Rightmove and OnTheMarket’s email alerts, while for Zoopla it is 3%, capturing the attention of active buyers.

THE CURRENT STATE OF PLAY IN THE BATH PROPERTY MARKET

In 2022, there were an average of 77 price reductions a month in the Bath area, today it’s 116 per month. The average Bath price reduction in the last 3 months was 7.1%. So, the statistics show that whilst the number of properties coming to the market is on the rise the number of price reductions has increased. In fact, the percentage of Bath properties undergoing price reductions has remained roughly consistent in recent years, with an average of 1 in 10.1 Bath homes (9.9%) reducing their asking price each month over the last five and a half years.

THE IDEAL PRICING STRATEGY FOR HOMES IN BATH

The initial pricing strategy plays a pivotal role in the speed and success of your property sale. Bath properties that get priced too high at the onset tend to stay on the market for longer and eventually require a more significant price reduction to generate new interest. By contrast, homes are priced realistically from the beginning (Click Here to find out more about the importance of pricing correctly), are far more likely to attract offers quicker and reduce the need for substantial price cuts.

For Bath sellers wanting to initially start at a ‘cheeky’ higher price, you need to be prepared to reduce this price if there is little to no initial interest. In these cases, a reduction within the first 2-4 weeks of being on the market is advisable and will help prevent stagnation in the market.

SIX THINGS TO CONSIDER FOR A PRICE REDUCTION

So, your property is on the market. It has been a few weeks and you’re wondering if you should be reducing the price. Well, here are six tips to look out for as signs you should be thinking about reducing that asking price:

A LACK OF VIEWINGS

If you haven’t received many viewings in the initial few weeks since listing your property, then it is advisable that you go and first look at your property listing and check that the marketing photos are up to standard for the area and are making your property stand out, maybe even check if your agent is willing to offer a virtual tour on your listing page (we certainly do). If you feel that the marketing material for your property is up to standard, then maybe it is time to consider a price reduction to attract new interest and boost your property on the portals.

VIEWINGS…BUT NO OFFERS

The current ratio in the UK property market of viewings to offers is around 8:10. If your property has not received any offers within the first 30 days of being on the market with your estate agent, despite there being plenty of viewings, then it could be that the price is a sticking point for potential applicants. If this is also the feedback your agent is getting then maybe it is also time to consider reducing the price closer to your bottom line.

LOW OFFERS

Homebuyers will often make low-ball offers primarily to secure the best deal possible they can for the budget they can afford. However, there can be numerous reasons. One key factor is the current market conditions – In a Buyer’s Market (more homes available than buyers) the purchaser feels that they have more power to make a low offer as the seller will be fighting other sellers to sell their house first (To find out more about Bath being a buyers or a sellers’ market, click here). Another reason for low offers is the condition a property presents itself. If a buyer feels they will need to be spending a fair amount of cash on renovations and decorative work to get it up to a standard they deem fit, then they are far more likely to take this cost into account and offer low. If you are getting low offers, remember it is not worth the value YOU think it is worth, or what your agent thinks it is worth, it is worth the value someone is willing to pay.

MARKET SATURATION

Look at the number of Bath homes that are on the market similar to your property, and check to see if you stand out from the other listings. Check on those properties similar to yours that sold too. Adjusting your price in line with the level of saturation in the market and how those properties that sold is crucial for selling your own.

SEASONAL ADJUSTMENT

Be mindful of seasonal trends within your local property market. Periods of high market activity require different strategies from the slower months of say November and December.

FEEDBACK FROM VIEWINGS

If there is consistent feedback from viewings that your property requires some work in the majority of people’s eyes, or that the price is just too high for what’s on offer, then you need to be looking at adjusting your asking price.

LEVERAGING EXPERT ADVICE

Given the Bath property market is full of many complexities, seeking out a second opinion and advice is nothing to be worried about. Experts such as ourselves are happy to help you out and offer you advice, it is what we are here for. So, if you just want another valuation or you want some advice about switching agents and lowering the asking price, then do not hesitate to get in touch with our team.

To view our latest Sales Properties in Bath, click here – Properties for Sale in Bath (residebath.co.uk)

To view our latest Rental Properties in Bath, click here – Properties – Reside Bath

For more from Reside Bath: Lettings and Estate Agency, click the icons below!

‘OVERVALUING’ – HOW IT CAN AFFECT YOUR HOUSE SALE IN THE BATH PROPERTY MARKET

Posted on 07/10/202404/07/2025 by prateek

In the last 5 years, 7,149 homeowners looking to sell in Bath have been caught out by estate agents overvaluing their property. Now, understandably, if you have considered selling your property then you will have felt the temptation to list it at a higher price hoping to maximise your sale. After all – who wouldn’t want to maximise their return on their investment?

However, this approach has a downside that many have overlooked: the risks and costs associated with overpricing/valuing a property. So let us dive into why correctly pricing your property is essential to secure a smooth, quick, and profitable sale for your home here in the city of Bath.

A COMMON PITFALL IN BATH’S PROPERTY MARKET:

In recent years, the Bath property market has seen a surge in home prices, leading to fierce competition among estate agents. During the peak of the market in 2021, many estate agents in Bath achieved top prices for properties, often receiving multiple offers in a matter of days. This quick time to sell was likely brought about by the desire for those to move out of metropolises such as London due to the pandemic and move to a quieter area with more space for their money. However, this quick time to sell and above-average pricing came with unintended consequences.

As fewer homes in Bath came onto the market after this boom, agents became desperate to secure listings. So, to secure potential sellers, many agents began over-pricing properties. This ‘overvaluing’ has led to delays and distress for many Bath homeowners as their property is then in turn not attracting as much attention as they thought it would leading to a significantly increased sale time and often a price reduction.

THE IMPACT OF OVERVALUING – LONGER SALES TIMES AND INCREASED RISK:

So, why are so many properties in Bath still on the market after a prolonged period of time? Often it all comes back to this concept of ‘overvaluing’. When a property is priced too high, you don’t attract serious buyers. Instead, your property sits on the market for an extended period, leading to frustration for both homeowner and agent and ultimately these properties end up being taken off the market unsold.

So, let’s look at the statistics:

Since 2019, in the regions of the BA1/2 area –

In 2019, 46.7% of the 3,693 properties that left Bath estate agent books, exchanged and completed. The remaining 1,970 (or 53.3%) Bath homeowners came off the market unsold.

In 2020, 69.4% of the 3,116 properties that left Bath estate agent books, exchanged and completed. The remaining 1,430 (or 45.9%) Bath homeowners came off the market unsold.

In 2021, 69.4% of the 3,254 properties that left Bath estate agent books, exchanged and completed. The remaining 996 (or 30.6%) Bath homeowners came off the market unsold.

In 2022, 72.1% of the 2,885 properties that left Bath estate agent books, exchanged and completed. The remaining 805 (or 27.9%) Bath homeowners came off the market unsold.

In 2023, 59.2% of the 2,815 properties that left Bath estate agent books, exchanged and completed. The remaining 1,148 (or 40.8%) Bath homeowners came off the market unsold.

In 2024 (YTD), 57.4% of the 1,877 properties that left Bath estate agent books, exchanged and completed. The remaining 800 (or 42.6%) Bath homeowners came off the market unsold.

THE HARD DATA ON OVERVALUING:

Now, you could reduce your asking price after three or four months to make your home’s price more realistic and affordable. This is certainly an option, yet because homes that sit on the market for too long often develop a negative reputation, potential buyers will end up asking themselves why the property has been on the market for so long and if there is a ‘hidden issue’ in the property that is causing it to not sell – essentially buyers automatically assume something is wrong with the property and get deterred.

As a result, even when the price is eventually lowered, as reported a few years ago, the property is likely to sell for less than it would have if it had been priced correctly from the beginning.

Recent independent research from TwentyEa and Denton House Research, that a UK home that takes over 100 days to sell (i.e. more than 100 days between coming on the market and agreeing on a sale) has only just over a 1 in 2 chance (56%) of successfully exchanging and completing the sale. The remaining 44% of sales fall through.

In contrast, if a property has its sale agreed in under 25 days, the chances of exchanging and completing rise to 19 out of 20 (94%). That’s a significant difference!

THE IMPORTANCE OF GETTING THE CORRECT PRICING ON YOUR HOME IN BATH:

So, what can you do as a homeowner to make sure you don’t fall into the overvaluing trap? The key is to ensure that your Bath home is priced correctly from the outset. Here are a few tips that should help you achieve this with your agent:

GET MULTIPLE VALUATIONS: Now this may sound backwards coming from a local estate agent. However, do not rely on your first appraisal. Ask several agents for a valuation and compare the suggestions. Then, choose which agent you think will work best for you and your property. We would love for you to choose us so if you are interested in getting a valuation then click here. Our team have been working in the City of Bath for over 15 years and our property consultants are locals to the area having grown up here, so our wealth of knowledge is plentiful!

RESEARCH COMPARABLE SALES PROPERTIES: Head to a Rightmove page full of sales properties in your local area and compare how similar homes to yours that have sold recently have been priced and see where you feel your property sits. You can also take a look at local agents’ sales property pages as some homes will not be listed on Rightmove.

UNDERSTAND THE CURRENT MARKET CONDITIONS: The property market is constantly changing. The highs of the 2021 post-pandemic property market have now cooled off, so make sure you are getting a valuation that reflects current market conditions. It is also a good idea to follow local agents. You can keep up to date with the latest on the Bath property market from Bath’s newest Estate Agents here – or you can follow us on our social media pages found in our linktree.

WORK WITH AN AGENT YOU TRUST: Choosing an agent that is a good fit for you is crucial. Look at how they market properties, do they have a good reputation and whether they will do what is in your best interest, not just theirs. If you want more information about our sales services, then Click here.

FINAL THOUGHTS:

Overvaluing might seem tempting – but the risks far outweigh the potential rewards.

Not only does it result in longer sale times, but it also decreases the likelihood of a successful completion. By pricing your Bath home accurately from the start, you can increase your chances of getting a decent price and a smooth and profitable sale.

Remember, the goal isn’t just to sell your Bath home – it’s to sell it for the best price, within the best time frame, to a serious and motivated buyer. By working with an experienced and honest estate agent, you can avoid the pitfalls of overvaluing and achieve the successful sale you deserve.

If you have any questions or would like more advice on selling your Bath home, check out our dedicated sales page for both Buyers and Sellers – and always feel free to pop into our office or give us a call.

Renter’s Rights Bill – What does it mean for you?

Posted on 03/10/2024 by prateek

The renter’s rights bill was published last week. It is important to note that the following is not yet law as it must be passed through parliament. Many Landlords are apprehensive about these proposed sweeping changes to the private rental sector. So, let’s explore the bill’s key points and what this means for tenants and landlords.

THE ABOLITION OF SECTION 21 NOTICES –

Section 21 evictions have been long used by landlords as a means of terminating a tenancy agreement without any reason. This system will be replaced by a new measure that will only permit evictions under certain conditions, such as rent arrears or the landlord wishing to sell up. Whilst this may initially be seen as restrictive, it has been on the horizon for a while as this was also a measure proposed in the Renters Rights Act, the previous bill by the conservative party, and we have previously spoken about the limited impact this change may have.

Going back to the point, landlords in Bath and beyond will now need to follow stricter legal grounds for eviction and ensure that they are treating their tenants fairly and making sure they are not displacing their tenants.

RENTAL INCREASES AND BIDDING WARS –

Rent control mechanisms in the Bill aim to standardize rent increases across the board. It has been proposed that landlords will only be allowed to raise rents once a year and tenants will have the power to challenge this, if they deem the rent increase as excessive, at a tribunal. The aim here is to prevent unfair rental hikes from being used as an undercover eviction. Despite this, Landlords will still be free to increase the rents in line with market rates.

Another significant proposed change is the prohibition of bidding wars. In recent years since the rental market demand has far exceeded supply, there has been an increase in these rental bidding wars where tenants are bidding higher than the advertised rent to secure a property they may know has been garnering a lot of interest. Under the Renters Rights Bill, this practice will be outlawed. Lettings agents and Landlords will be forced to publish a clear asking price for rent and will not be allowed to accept offers over this rate.

DECENT HOMES STANDARD AND AWAAB’S LAW –

The introduction of the Decent Homes Standard into law aims to make sure that all properties in the private rental sector abide by a minimum safety and quality standard. Landlords in Bath and beyond will need to make sure their properties comply with these standards or they will risk facing penalties. This is an expansion of the existing standard that applies to social housing, ensuring those in the private rental sector are entitled to the same level of safety and decency in their homes.

Awaab’s Law, named after a traffic case of a child who died from exposure to mould in social housing, will also be extended to the private rental sector. This will place a legal requirement on landlords to address serious health hazards within a specified time frame. Whilst this may seem like a major regulatory burden, many landlords are already maintaining these standards so will find compliance with these new regulations relatively straightforward.

RENTING WITH PETS –

Another headline from the bill is the enhanced ability for tenants to keep pets. Landlords will no longer be allowed to refuse pet requests without reasonable grounds. However, to address concerns about the potential damage a pet may cause to the property, landlords can now require pet insurance to cover any damage.

STRENGTHENED LOCAL AUTHORITY POWERS –

Local councils will be granted additional powers to enforce the rules laid out in the Bill. This included the ability to levy fines of up to £7,000 for initial breaches of the above, and escalating to £40,000 for repeat offences. Whilst these new powers may be daunting, they are largely targeted at rouge landlords, and those who already comply with existing regulations are likely to be unaffected.

If you have any further questions, then do not hesitate to get in touch and if you would like to read further into this then click the link below ⬇️

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

IS THERE A RESURGENCE OF TERRACED HOUSING IN BATH?

Posted on 24/09/2024 by prateek

If you live in this incredible city, then you will know that Terraced Housing is still a prominent feature of the local housing market. Once considered a relic of the past, the simple and unassuming two-up two-down terraced house was a hallmark of Victorian Britain. This style of housing is still prominent across much of the country, especially in industrial cities, and often, many of these houses have now added a third room via extension or loft conversion.

While the sleek modern flat has been the dominant housing trend in recent years, the terraced house is proving to be an attractive option again for many home buyers, particularly first-time buyers. According to recent research by Zoopla, two-bedroom terraced homes have become the fastest-selling type of property in England and Wales, with an average sale time of just 27 days. So, what’s behind this? Is the same thing happening in Bath?

A LONGSTANDING STAPLE OF THE HOUSING MARKET:

The terraced house has deep roots in the UK property market, with its design dating back to the 1600s. With a symmetrical design and efficient use of space, terraced housing has become a go-to solution for British housing within urban areas. The typical layout of these houses is two reception rooms downstairs and two good-sized bedrooms upstairs, with one or two bathrooms and a practical kitchen at the rear. This layout, modest by today’s standards, still provides flexibility and simplicity.

WHY ARE BATH BUYERS REDISCOVERING TERRACED HOUSES?

Several factors are influencing the renewed interest in the market. One is the price. As buyers in Bath are feeling the impacts of inflated interest rates and ever-tightening budgets, many are realising that a two-bedroom terraced home provides better value for money than a similarly sized flat. Buyers are attracted by the fact that they can often have an entire house for the price of a flat and they gain a private garden space with this too. Especially in densely populated areas, the lack of neighbours above and below, a private entrance and often private parking are features that flats can not compete with.

TRANSFORMING SPACES AND ADDING VALUE:

Those who are first-time buyer often look for opportunities within their purchase to personalise and create their dream first home. Terraced housing provides the perfect foundation for a first-time decoration or renovation project. Within Bath in particular, purchasing a run-down terraced and transforming it into a beautiful masterpiece of a home has become increasingly popular. Contemporary extensions to the rear or into the roof have become a staple of terraced home renovations. Not only does this add value to the property but to those living there is it makes the home increasingly livable and gives flexibility to many first-time buyers to think about families. Alongside this, given the increase in flexible working, the ability to create a home office within these houses is becoming more valuable.

THE STATS:

Terraced houses represent 32.3% of homes in Bath, higher than the national average of 22.5%. For comparison, Bath apartments/flats account for 31.7% of homes in the city.

Between 1995 and today, the average price of a terraced home in Bath has risen from £65,707 to £538,883 – a steep rise of 720%. This increase in price is further highlighted as it is well above the average percentage increase overall of housing across the city of 597% between the same period.

Finally, in the last 3 months, the average terraced home in Bath has taken 31 days from the property going on the market to achieving sale. Impressive when compared to the average time of 53 days for Bath flats.

LOOKING INTO THE FUTURE:

While it may have been overlooked at times, especially as modern flats and larger detached homes grow in popularity, the terraced house has always been a reliable, affordable, and adaptable choice for Bath and British buyers. With its combination of history, practicality, and untapped potential, it’s no surprise that this humble house is once again becoming a mainstay of the national housing market.

For first-time buyers, those seeking to downsize, or anyone looking for a flexible home with character, the terraced house may just be the perfect fit!

THE NEED FOR REALISTIC PRICING – A CLOSER LOOK AT THE BATH MARKET DYNAMICS (2019-2024)

Posted on 17/09/202404/07/2025 by prateek

The Bath Property market has undergone significant changes over the past few years, as depicted in the graphs below. These visual aids capture the trends in the number of properties available for sale and the number of properties sold subject to contract (SSTC) from January 2019-2024. By analysing these graphs, we can gain insight into the evolving dynamics of the local property market and the necessity for Bath homeowners to adopt realistic pricing strategies when bringing their homes to market.

A CLOSER LOOK AT THE BATH MARKET DYNAMICS (2019-2024) –

From January 2019 to February 2020 (a normal market), the number of properties for sale in Bath remained relatively stable, at an average of 1,278 homes (bath being BA1/2). This pre-COVID period also showed a steady number of properties being sold each month, with an average of 181 home sales. This indicated a balanced market where the supply of homes was more or less matched by buyer demand.

The Bath property market underwent a noticeable shift with the onset of the COVID-19 pandemic in late March 2020. As the pandemic gripped the nation, the number of properties that sold in April and May 2020 plummeted sharply. This was due to the uncertainty brought about by the pandemic. Many buyers held off amidst the uncertainty.

However, the floodgates opened once the property market lockdown was lifted in May/June 2020. The number of properties coming onto the market between June and August 2020 rose by 27% above the long-term average for that time of year, and the number of homes selling also rose.

In Bath, in the 20 months between May 2020 and December 2021, the average number of Bath homes sold per month was 245, with the biggest month being 342 homes Sold Subject to Contract (SSTC). However, the number of homes for sale slowly dropped throughout the period to an all-time low of just 540 homes for sale in December of 2021.

What stands out during this period is that despite the reduced number of Bath properties for sale, the number of properties sold remained robust. This surge in demand, despite a drop in available Bath homes, can be attributed to the combination of pent-up demand and the government’s intervention in the property market. Most notably the stamp-duty-holiday incentivised buyers to move quickly before the levy was lifted.

As the dust settled moving into 2022, the property market began to feel as it was coming back towards and ‘normal’ market. The number of homes selling settled down and the general level of properties for sale steadily began to rise. However, as we ended the summer of 2022, the property market was struck twice within a span of 12 months.

The first hit on the market came in the spring of 2022 when then Prime Minister, Liz Truss and her chancellor Kwasi Kwarteng, produced their now infamous mini budget. Following this, there was a five-month period dropped, stooping to an average of 140 sales per month. It started to recover in the spring of 2023, as home sales rose to an average of 223 sales per month, only to be hit again when the increasing interest rates started to really bite in the summer of 2023. Home sales then slumped to 181 sales per month during the summer of 2023.

NUMBER OF BATH HOMES FOR SALE AFTER JANUARY 2024 –

Since January 2024, the number of Bath homes selling has been at an average of 218 homes per month. However, the number of homes for sale has steadily risen to 1,213 in August 2024 alone. The significant increase in supply could be due to various factors, including homeowners taking advantage of high property prices at the moment, an increase in new builds, or even a growing number of properties that failed to sell in previous months/years now being re-listed with a new agent.

PERCENTAGE PROPORTIONS: BATH VS. UK TRENDS –

The second graph below delves into the dynamics here by comparing the same set of numbers to each other and expressing them as a percentage.

By doing this, we can see the proportion of monthly homes sold relative to the number of properties available. This yellow line on the graph represents the % of Bath properties sold SSTC during the month as a proportion of the homes for sale. The red line shows the equivalent figure for the UK average.

The graph reveals important information. Throughout 2020-early 2022, the proportion of UK homes sold in Bath (yellow line) spiked into the mid to high 30% range. This aligns with the earlier observation that despite fewer homes being available, a higher percentage of these homes were being snapped up quickly by buyers wanting to make the most of the government intervention following the pandemic.

However, as we moved to 2022 and beyond, this trend began to reverse. The proportion of homes sold (as a percentage of homes for sale) in bath started to decline and now the figure stands around the mid-teens.

SO, WHAT DOES THIS MEAN FOR BATH HOMEOWNERS? –

The stable number of home sales against a backdrop of increasing supply could be signaling that there is a potential issue. The market may be approaching a tipping point where supply outsees demand and thus prices begin to fall as the market becomes a buyers’ market and there are more options for buyers. This increase in supply means those serious about getting a sale need to make sure they are getting their homes valued and listed at a realistic price mark. Pricing too high in this market will lead buyers to be deterred by other options they have available with such a high supply.

A price too high in this market will lead to long listing times, and price reductions, both of which can deter some buyers as they may assume this is due to an unforeseen issue within the property. Neither of these are wanted by sellers so it is critical that you get that listing price correct.

Also, remember that a longer listing time means that a sale is more likely to fall through, even if a sale is agreed upon. Looking at an examination from Denton House Research using data from TwentyEA, they noted that if a UK home sold within 25 days of the property coming to market, there was a 94% chance of the sale going all the way through to completion. If the sale was agreed upon over 100 days after it was listed on the market, then the chances of actually completing the sale is reduced vastly to 56%.

IN CONCLUSION –

Whilst the Bath property market remains active, ‘this has introduced a new challenge for sellers. To achieve a successful sale, Bath homeowners must pay close attention to market trends and set their prices accordingly. Realistic pricing and an understanding of the broader market dynamics will be vital in navigating this evolving landscape. As the data suggests, the market is still healthy, but the balance of supply and demand is shifting which is making strategic pricing is more critical than ever.

RENTERS’ RIGHTS BILL UPDATE – WHAT BATH LANDLORDS NEED TO KNOW.

Posted on 13/09/2024 by prateek

On Wednesday, Parliament had the first hearing of the Renters’ Rights Bill, the revision by Labour of the previous government’s Renters Reform Act. There was a lot of information given during the hearing so let’s take a moment to take a look at what this could mean for your investments in the future.

Let’s begin by reassuring you that nothing groundbreaking was heard in these proposals that will catch you off guard. Most of what was heard was already in the previous bill by the Conservative government. Regardless, let’s break down what was involved and what might affect you as a Bath Landlord going into the future.

THE END OF SECTION 21 (‘NO FAULT’) EVICTIONS:

The big headline in the news outlets was the abolition of Section 21 evictions. For years now, landlords have been able to issue a section 21 notice, which gives tenants two months to leave the property through no fault of their own. Many have viewed this as unfair, particularly when they have been used to displace tenants who challenge landlords’ provision of poor living conditions or challenge rental increases they deem unfair.

Landlords won’t be without power. You will still be able to evict tenants who break rules under Section 8 of the Housing Act. This will cover situations such as failure to pay rent, damage to the property, and antisocial behaviour. The main difference here between a section 21 and a section 8, is that the latter requires a court order. The concern here is that in recent years these court orders have faced significant delays. However, the government has assured us that they will work to clear the backlog and streamline the process.

RENT INCREASES AND BIDDING WARS:

Another important point heard on Wednesday’s hearing was the ban coming in on bidding wars. Over recent years, some cities have seen an influx in rental bidding wars. This has been caused by over-demand and under-supply, which has then led to two people trying to offer more than the other over the asking rate of rent and leading to ‘a bidding war’. This new piece of legislation will make it illegal to ask or accept any offers from potential tenants over the advertised rent. This may stabilise the market, but it is something to keep in mind when setting rent prices for your Bath rental property.

In addition, in-tenancy rental increases will be limited to once a year and will no longer be allowed during the period of the fixed term of a tenancy. Whilst this ban may seem restrictive, it does provide a sense of stability for tenants and in turn may encourage longer-term lets.

ENERGY EFFICIENCY AND PROPERTY STANDARDS FOR BATH LANDLORDS:

This proposed act introduces a stricter regulation on the quality and energy efficiency of rental properties. By 2030, landlords will need to ensure that their properties are given an Energy Performance Certificate (EPC) rating of C or above. (For more information about EPC Certificates see this article: How will the new EPC rules affect Landlords? (residebath.co.uk)). This is a long-term requirement, so although it may require investment at first, there is plenty of time to plan these changes, check the regulations, and plan accordingly.

The introduction of the Decent Homes Standard into the private rental sector means that Bath Landlords will also need to ensure their properties and maintained to a certain standard. This will particularly look at hazards such as dampness and mould, a common issue among Bath properties in particular. It is a move that is aimed at improving the overall quality of rental accommodation and whilst it may mean more responsibility for more landlords across the city, most landlords will already be meeting these standards.

GOING FORWARD:

If any one of these proposed changes is causing any concern then do not hesitate to get in touch with our team, we would be happy to help you understand these changes further. Being a team in Bath affiliated closely with the governing body, Propertymark, we are continuing our professional development and are constantly keeping up to date with the latest changes. Do also keep an eye on this blog page which is continually updated with all the latest news in the property industry here in Bath and beyond.

BATH PROPERTY OVERVIEW – A MARKET OF OPPORTUNITY

Posted on 11/09/202404/07/2025 by prateek

The Bath property market has experienced a rollercoaster ride since 2019. There have been unprecedented challenges and opportunities that have shaped the landscape of homebuying, selling, and renting in the area. By examining this 6-figure time frame, we can better understand the resilience of the local property market and how economic factors, particularly interest rates, influence property transactions. The Graph below indicates vividly the dramatic fluctuations during this time period.

THE PANDEMIC IMPACT AND POST-LOCKDOWN SURGE:

The first significant highlight in the graph is the pandemic and the lockdown in early 2020. The property market in Bath, like much of the country, ground to a near halt. House sales in April of that year alone plummeted by 89.1% below the 2019-2024 average. Effectively, the lockdown froze the market. Restrictions that were put in place made it extremely difficult for people to view properties, secure mortgages and move home.

However, the Bath property market experienced a remarkable rebound once measures introduced in the lockdown were eased. The graph indicates that there was indeed a ‘boom’ post-lockdown. Sales soared in some months to 57% above the 6-year average by mid/late 2020. This surge can be attributed to pent-up demand, government incentives such as the stamp-duty holiday, and a renewed appreciation for homeownership as people sought more space and comfort after such uncertainty. There was extraordinary activity during this period, and many homes sold very quickly and often well above the average asking price.

THE TRUSS MINI-BUDGET AND RISING INTEREST RATES:

The Bath property market remained buoyant through 2021. However, sales began to normalise in the latter months, fluctuating but still frequently staying above the long-term average. The shift in dynamics started in mid/late 2022 and coincided with the economic upheaval triggered by the ‘mini-budget’. The budget, which led to market instability and rising mortgage rates, immediately impacted buyer confidence. As a result, Bath’s house sales dipped below the long-term average as potential buyers paused to reassess their financial positions.

Simultaneously, the Bank of England (BoE) responded to inflationary pressures by increasing the base rate, as depicted in the graph above. The sharp rise in interest rates through 2022 and 2023, peaking around 5.25% in 2023, further damped the market. Higher mortgage rates reduced the affordability of home ownership, particularly for first-time buyers and made it more challenging for homeowners to move up the property ladder. The market cooled significantly, as seen in the negative sales percentages during this period.

RESILIENCE AND RECOVERY IN 2024 IN THE BATH PROPERTY MARKET:

Despite the headwinds of higher interest rates, the Bath property market in 2024 shows signs of resilience. The graph illustrates that even with these challenges, monthly sales have stabilised over recent months and are still above the long-term average. A testament to the underlying strength of the local market. It’s important to note that this average included the exceptionally high sales volumes of 2020/21, making the current performance even more impressive.

IN-DEPTH ANNUAL DATA FOR BATH:

Looking at the data for Bath estate agents in the BA1/2 area, we can see that:

2019 – An average of 180 properties were sold subject to contract (STC) per month in Bath, 11.2% lower than the 6-year average of 203 properties.

2020 – An average of 207 properties sold STC/month, 2.2% higher than average.

2021 – An average of 234 properties sold STC/month, 15.7% higher than average.

2022 – An average of 198 properties sold STC/month, 2% lower than average.

2023 – An average of 183 properties sold STC/month, 9.9% lower than average.

2024 YTD – An average of 218 properties sold STC/month, 7.8% above average.

This sustained level of activity suggests that demand for homes in Bath remains robust, driven by factors such as the area’s appeal, the relative affordability compared to renting. Perhaps the normalization of the work-from-home culture allows more flexibility in where people choose to live.

Furthermore, Bath sellers and buyers who have become adjusted to the new interest rate environment continue to move forward with their future plans.

LOOKING AHEAD: A MARKET OF OPPORTUNITY:

As we move deeper into 2024, the Bath property market presents opportunities for buyers and sellers. For sellers, the current conditions indicate that, despite higher interest rates, there is still strong demand for well-priced properties. On the other hand, buyers may find that the stabilising market offers a window of opportunity to secure a home before any potential further economic challenges.

If you’re considering moving in the next 6-12 months, now might be the perfect time to explore your options. Whether you’re looking to downsize, find more space or just want a change in surroundings, I invite you to get in touch with us for a free valuation & market appraisal of your home in Bath. Understanding the value of your home in Bath home in the current market is the first step to making informed decisions. With over 15 years of experience, our team is full of knowledge of the local area and is here to help you make the best-informed decision possible for your future. Despite recent fluctuations in the market, there are still plenty of opportunities to capitalise on.

ANALYSIS OF TRENDS IN UK PROPERTY OWNERSHIP BETWEEN 1918-2023

Posted on 09/09/2024 by prateek

This week’s blog is a mini post – just a quick filler for your property fact needs! So, without further ado, let’s get into the shift in property ownership trends over the last 100 years or so.

The UK property market has seen significant changes over the last century. Over this time, there have prevailed some distinct trends among owner-occupied properties and both private and socially rented homes.

In 1918, the UK market was dominated by private renters, making up 75% of all households. At the time there was only 25% of the population who owned their own home. Over the coming decade, homeownership gradually increased, reaching 38% in 1958. This shift was then accompanied by a decrease in private renting, which fell to a low of 41% in the same period.

The most significant growth in homeownership occurred between 1958-2003. During this time, the % of ownership went up from 37% to 70%. This period also saw a corresponding decline in both private renting and social renting, declining to 8% and 22% respectively.

Interestingly, the trend for private renting was reversed around the time of the global financial crisis (2008/09). This led to a 2% growth in private renting between 2003-2008. This growth trend has continued as the population has expanded and has now reached 20% in 2023. The resurgence in the private rented sector can be attributed to not only the increase in population causing a larger demand for housing but also relative affordability and government policy shifts.

Meanwhile, the social renting sector has seen a gradual decline since its peak in the late 1970’s. Over the recent years, this figure has stood around the 18% mark, compared to the 29% seen in 1978.

To summarise, the UK property market has evolved significantly over the last century. The initial dominance of private renting has given way to an increase in homeownership, although recent years have seen renewed growth in the private rental market.

As a local property agent here in Bath, it is important that we recognise how these trends impact homeowners, renters and landlords alike. Understanding these trends allows us to help make informed decisions on the current landscape and provide the best advice possible. So, if you want to find out more then get in touch with our team! We are always happy to help you find your new home!

Are homes in Bath suitable for families?

Posted on 02/09/202404/07/2025 by prateek

Bath has become renowned for its attractive attributes, rich heritage and strategic location for families to both buy and rent. In this post, I want us to look at the current housing market of family homes in Bath and compare them to the national average, looking into potential opportunities for both home buyers and landlords.

Our experience as both Lettings and Estate Agents in Bath means it is valuable for us to look at this data and share the valuable information for those interested in relocating to Bath or moving within the city.

TOTAL NUMBER OF BATH FAMILY HOMES BY TENURE –

Looking at the latest data for the local area of Bath and North East Somerset – there is a total of 35,929 ‘family homes’. So, what makes a home a ‘family’ home? Well by definition, a home with dependent children up to the age of 18 living at the property. These homes are distributed variously across the types of tenure – owned outright, owned with a mortgage, socially owned, and both socially and privately rented. So what is the exact breakdown?

Owned outright: 3,712 (10.33%)
Owned with a mortgage: 20,232 (56.31%)
Socially Rented: 6,447 (17.94%)
Privately Rented: 5,538 (15.41%)

So as we can see there is a large distribution among the tenure of family homes across Bath and North East Somerset, but how does this align with the national averages?

The national averages are as follows:

Owned outright: 8.42%
Owned with a mortgage: 48.1%
Socially Rented: 20.93%
Privately Rented: 22.55%

Understanding these figures is crucial for families looking to reside in Bath. The high percentage of homes owned with a mortgage shows us that there is a vibrant property market where families want to buy a home and settle down with a family.

Alongside this, the decent number of socially rented homes suggests that there is a robust support system for families in need of affordable housing, ensuring that Bath and the surrounding area remain inclusive and supportive of family types.

BREAKDOWN OF BATH FAMILY HOMES BY NUMBER OF BEDROOMS:

Of the 35,929 family homes in the Bath and North East Somerset Area, they are split by bedroom as follows:

1 Bedroom: 1.12%
2 Bedrooms: 15.07%
3 Bedrooms: 43.17%
4+ Bedrooms: 41.14%

So, families can take pride that Bath has a significant proportion of housing stock consisting of larger homes suitable for raising a family. This is both a strong selling point for home buyers wanting to settle down in the local area, or investors looking to better understand the type of house they want to purchase next.

For landlords, zooming into this and looking closer at the rental family properties by bedroom is crucial in locating a potential gap in the market and gaining a better return in your investment. So, the breakdown of rental family homes is as follows:

1 Bedroom:
2 Bedrooms:
3 Bedrooms:
4+ Bedrooms:

For families renting in Bath, the good level of 3-bedroom rentals is beneficial, providing ample space for children and family activities. However, the lower availability of 4+ bedroom rentals could be a concern for those families looking for more space, but this does present a gap in the market and a potential opportunity for landlords to invest.

FINAL THOUGHTS:

For both homeowners and landlords, understanding the composition of Bath’s housing market is key to making informed decisions. Families can gauge how their property fits into the local market landscape, while landlords can identify the lucrative investment opportunities for family homes in the Bath area.

With Bath’s unique housing distribution and potential gaps in the rental market, it stands out as an interesting location for property investment. As far as a place to settle down and purchase a family home, the market is vibrant and the city offers the perfect location for those with children looking to move home.

As a Lettings and Estate agent with extensive knowledge of the Bath market, we are here to help you navigate these opportunities and make the most of your property investments and homeownership.

Whether you are a family curious about the local market or a landlord seeking the next best investment, Bath offers diverse possibilities. Reach out today to learn more about how you can leverage these insights to your advantage.