Well, with the election just on the horizon, understanding the impact of the outcome will be crucial for any landlord and property owner.
This month’s event will take place on the 17th of July, starting at 6:30 and hoping to wrap up by 8pm.
At this conference, we have three incredible speakers lined up for the evening.
Tim Thomas – Propertymark’s Policy & Campaigns Officer, a role in which he regularly digests new legislation, liaises with government departments and attends government and industry working groups. Tim will share his insights into what the newly elected government has in store for the housing sector.
Jacqui Swann & Shaz Sarfraz – Is your tenancy watertight? Do you have every safety certificate? Have you served every mandatory document? If you’re not sure, you could have missed something important that will pose problems further down the line. In this session, Shaz Sarfraz and Jacqui Swann from Battens Solicitors will explain how to ensure you are not at risk of fines or failed notices.
Toby Martin – our very own Bath lettings expert will be presenting an up-to-the-minute summary of the local lettings market, along with some simple tips for landlords to ensure a successful tenancy
Trying to understand the complexities of the UK property market can bring about a headache to even the most educated of professionals. The property market in this country is characterized by a complex myriad of factors. One of these most crucial factors is the measure of price per square foot (£/sq.ft) This allows us to have a standardized level of measure and enables us to compare across different regions.
NATIONAL TRENDS:
Across the UK, property prices have been seeing vast fluctuations over the last three decades. Rather than comparing nominal headline price, the £/sq.ft measure is a valuable alternate indicator to measure these changes. On average in the UK, Q2 of 2024 saw properties have a value of £343/sq.ft. This is up from Q1 of 2023 where the avg. price was at £328/sq.ft. A rise of 4.61%.
As expected, the area with the highest £/sq.ft was the W1 area of London (Mayfair, Marylebone, Fitzrovia and Soho), which sat in the lofty heights of £1,187/sq.ft. Conversely, the rural north saw the lowest figure. Shildon in country Durham (DL4) was £77/sq.ft, a world away from that of W1.
The variable dynamics of the UK market are reflected in these figures. Economic conditions, governmental policies, demographic shifts, and supply and demand levels have all contributed to these varying figures.
THE SOUTH-WEST:
Moving focus closer to home for us here in the southwest of the country. On average the South West homes sold in Q2 of 2024 saw a £/sq.ft of £357/sq.ft. This is up 1.13% when compared to Q1 of 2023 (£353/sq.ft).
So, increasing at a more moderate pace compared to the rest of the country. Here in the SW we have seen significant investment in infrastructure and development projects. This has been bolstering its property market prospects. This side of the country also benefits from enhanced appeal due to strong transportation links to major cities, via major motorways, rail connections and bus routes.
BATH:
Now we are really close to home. The average £/sq.ft in homes sold in the BA1/2 area in the second quarter of 2024 was £480/sq.ft.
This is up from £472/sq.ft in Q1 of 2023. A slight rise of 1.69%.
The presence of reputable schools, a vibrant community, a balance of urban amenities and a suburban lifestyle along with the beauty this city holds, are playing a significant role in this figure and enhance its appeal to homeowners and landlords alike.
THE IMPORTANCE OF THE £/sq.ft FIGURE:
The £/sq.ft figure is not just a statistic; it is a crucial indicator of the property market’s health and trends. In a previous analysis, it was highlighted that this metric offers a more immediate reflection of the market compared to traditional indices such as the Land Registry or Nationwide House Price Index. These traditional indices lag six to nine months behind due to the time it takes to complete sales and register transactions.
This lag time from other measures allows us to see real-time tracking and gain insight several months ahead of other reports. Therefore, by following the trends of this figure in particular, we can judge the initial trends of the property market and gives an advantage when looking into the property market here in Bath.
If you would like more information about the Bath property market and where it sits both regionally and nationally, then please do follow us on social media, where we post lots of information which will help and guide you on your property journey in the city, along with all our listings and housing updates.
If you are involved any way in the property landscape in the UK and beyond, then your social media will likely have shown you that this year’s Propertymark One took place a week ago. If you missed that news then yes, the annual conference led by the property sectors professional body, Propertymark, was held on the 14th of June at the London ExCeL and gave us industry professionals a days insight into the changes the property world may see in the next 12 months. Alongside this we also got presented with new ideas around how we as professionals should be utilising our social platforms. This blog will give you a look into the day we had and our key takeaways from this event going forward.
The General Election –
Well it’s nearly here, you can almost touch those 2024 general election ballot papers. Last month, Rishi Sunak called a sudden general election following a positive start to the year for his party. In his announcement speech, he said the economy was growing faster than any other country in the G7, and his government had begun to reduce inflation in the country. However, as is customary, the opposition is keen to point out that it is more likely he called the election as the economy is stalling.
Either way, the general election is nearly upon us and the country is more than likely to see a new party come into power, most likely Labour if recent polls are to be believed. So what did the experts at this year’s Propertymark One have to say following the sudden news?
Well, the overarching opinion is that in the next couple of weeks, we are likely to see a slowdown in the property market’s cogs, a property pause if you will. People are most likely to stay put and wait to find out what the new leadership party may do to affect parts of our income streams, such as stamp duty, and other taxes before they make a move toward moving home. If stamp duty is reduced, or even as some manifestos are suggesting, get abolished entirely for young people and first-time buyers, then we may see a sudden influx of house buying. Either way, the election will bring about change and it is also more than likely that we will see a spike in the housing market (potentially an 18% increase in the first 4 weeks after the election based on past data) after the election if past trends are to continue, and inflation continues to fall.
The Importance of being a Propertymark Member –
Propertymark is the professional body for the property sector and continues to equip member businesses and individuals with all the necessary tools, training and qualifications for all sectors and staff. Nationally recognised, Propertymark allows agents to display their level of CPD (continued professional development) and the professional standards they adhere to.
This year’s PMOne continued to reiterate that being a PM (Propertymark) member is not only important for showcasing your level of professionalism in the industry but also the benefits of being a PM member. With a new level of qualifications, new benefits for members and the introduction of the company membership, it is an exciting time to be a member. So, as the market and the industry is due to see significant changes in the coming months, it is reassuring for our clients to know that we are Propertymark protected and are keeping up with the latest industry changes.
Marketing as an Agency –
In the past marketing as an agency involved just creating some form of content showcasing your listings and maybe a new team member if you were so lucky and creative. However, in recent times this has changed. People are more interested than ever in doing business with people they feel they already know when they want to bring their house to market or find a place to rent.
There was a big emphasis this year on agencies marketing themselves differently. Instead of just showing off the latest and greatest home you may have coming to market and boasting the price it is on the market for, we should be getting our faces in front of the camera, giving people a voice and person to engage with and then do more than just show off the property. People want to hear about the story behind the house and the rooms inside, the land surrounding, and all that good house stuff.
Most importantly, it was advised that agencies should be doing more than a whistle-stop tour of a home on their social platforms. They should be advertising their expertise and knowledge of the local area they cover, showing the latest news in the property landscape, going out locally and showing off the people in their company, going out and about in the neighbourhoods, showcasing local places people may want to visit or be interested in if they are re-locating and are new to town. The idea is that agencies should not only be a place people come to for their home, but for advice about the place they call home.
All of this effort is in the pursuit of making your agency stand out from the crowd, while at the event we were asked to sit down if we didn’t post certain things on social media, and by the end, in a room full of around 50 people, just 3 were left standing. Again, agencies need to become a place people can go to not only for a home but for advice on the local area or an issue they’re having in their property and know your agency is a place where they can step into for the first time, but feel like they are already friendly with you and have made a connection.
This effort is also made to create a trail of breadcrumbs that may lead to future business. For example, if someone is looking to relocate to the city and previously saw a video of your agencies showcasing the beauty of the city you are in, then they may be enticed to get in contact with you first over the other competing agents in town. Alongside this, they may also see some content of yours regarding the local amenities in the city and then trust that you know the city well, leading to a sense of trust, and then contact you regarding a sale of a house. The more listings and people you make an impression on, the more people are likely to recommend you and word of mouth will spread. Leaving these breadcrumb trails back to your agency across various channels is crucial to success in the digital age.
Rounding-Off –
Overall then, the key takeaways from this article are:
Be prepared: There is more than likely to be a flurry of activity after the election. Be prepared for any outcome. Make sure your team know and is made aware of any legislative changes that may be put into effect over the coming months.
Propertymark Membership: This is continuing to be an amazing asset to any team of any size. Individual or Company membership is available and will not only boost credibility as an agent but come with some amazing perks too.
Social Media is Power: The modern era of property agency is upon us. AI assistance will be here before we know it and social media will likely become the leading influence in the next generation choosing an agency when renting or buying a home, based on their connection with the people in the company and the brand they are presented with online. An online presence is so important and you must take the steps now to cement yourself in your local area and get that extra yard on the competition.
So, if you want to get connected with us and see what we are doing on social media, then please go and follow us on all platforms, and as ever, if you want to come and say hi you can find our contact details at the top right of the page.
Well, what an insightful day the team here at RESIDE had during the trip to London to attend this year’s Propertymark One.
For those who do not know, Propertymark is the leading membership body in the UK for all property agents, big or small, sales or lettings. They provide us with professional credibility and help businesses in the sector be equipped with the tools and training needed to tackle all the hurdles we face and provide us with the ability to grow our professional knowledge, allowing us to gain valuable and nationally recognised qualifications within the industry so you can trust us with your homes.
Since its inception last year, Propertymark One was back again to gather many familiar and influential speakers within the industry to provide us all with their valuable insight into the market over the coming months. With an election on the horizon, we were told all about how this is looking to shape the market over the next 6 months and what this means for us all.
Alongside some incredible talks on the main stage, there were also a host of ‘breakout’ rooms throughout the day which delved further into the nuances of the industry, and focussed on topics the speakers specialised in. Talks here included the way that AI may be changing the way we in the property landscape do business in the future, the benefits of marketing not only our properties but our personalities and knowledge of the market and showcasing industry insights, and the way we brand our business to stand out and be ahead of competitors.
One of these sessions was co-hosted by our very own GM, Toby Martin. Toby and his band of property marketing pros gave us all a valuable look at what it takes to become a ‘marketing superhero’, and gave an amazing insight into the reasons why we as property experts, shouldn’t be all sell sell sell when it comes to social media and our online presence, but become more tell tell tell. Tell the potential landlord or home buyer why we should be the ones they chose to come to through telling our audience about the trends in the market and becoming a place people come to for knowledge within the market. Tell everyone who we are as individuals. People buy from people and we want people to feel they can approach us, know us and trust us before they’ve even stepped foot into our office.
The whole team here are bursting with excitement at being within this market over the coming months. This year’s Propertymark One was a great day, and we can’t wait to be back next year. With the general election brewing and almost upon us, with potentially a new party coming in for the first time in 14 years, the market is due to see some new, and hopefully welcome, changes. We look forward to sharing all this with you as we find out more.
(p.s. We got to see location, location, locations’ one and only Phil Spencer in person!)
If you want to list your rental property with us, find a new place to rent, or begin searching for your new home to buy, then get in touch with our team. All details can be found in the ‘contact’ tab above. We can’t wait to hear from you.
Across the UK the property market has met significant challenges over the past 18 months and yet in its wake has displayed a strong resilience to its forces. Many analysts predicted back in the autumn of 2022 that the country would see a dramatic downturn in house prices driven by economic uncertainty, cost of living crisis, and ever-increasing mortgage rates.
However, contrary to the dire forecasts predicted many months ago, the prices of houses across the country have remained relatively stable. This article will dive into the reasons behind this unforeseen occurrence and provide valuable insight for both homeowners and landlords alike.
ECONOMIC PREDICTION VS REALITY:
Liz Truss vs the lettuce…who remembers that? Well during her time in office, she and the treasurer at the time, Kwasi Kwarteng, produced their highly controversial ‘mini-budget’. Following this, there were widespread predictions that there would be a dramatic fall in house prices and some forecasts even predicted that we would see a decline of 20-35%. Yet, these never materialised. The decrease has been instead modest, with land registry figures showing about a 3.12% decline over the previous 18 months.
If we look at the past 12 months, British house prices have increased a measly 0.89%, when compared to this time in 2023. So, why were the forecasts so inaccurate?
IMPROVED LENDING PRACTICES:
During previous economic downturns, people have often cited banks’ poor lending standards. However, changes to mortgage regulations require banks to ensure borrowers can afford their monthly repayments, even if rates increase significantly.
This precaution has provided a substantial buffer for homeowners, enabling them to cope with the rising rates.
For example, in 2007 shortly before the global financial crisis, many borrowers did not need to prove their income to their banks. The 2014 MMR changes addressed this issue, ensuring that lending was based on sound financial footing. Consequently, many homeowners could still afford their mortgage when rates increased recently.
EMPLOYMENT & WAGE GROWTH:
Another crucial element has been the relatively stable employment situation. Although the UK experienced a brief recession over the winter, unemployment rates have remained low at 4.3%. For comparison, the unemployment rate during the 08/09 financial crisis was at 8.5%. Moreover, the average wages (inc. bonuses) have increased by 5.7% over the past year, reaching their record high at an average of £682 a week.
The combination of low unemployment and increased wage rates has led to fewer homeowners being forced to sell their homes due to financial difficulties. Banks have also been proactive and provided those with financial difficulties solutions to these problems with interest-only payments and extended mortgage terms to help them manage their repayments.
SUPPLY AND DEMAND DYNAMICS:
The impact of economic challenges on the property market has been more evident in transaction volumes than in prices. Typically, there are about 1.16 million house sale completions annually in the UK. However, during the ‘race for space’ seen at the back end of the COVID lockdowns, this number surged to 1.48 million. It then dropped back down to 1.26 million in 2022 and further to 1.02 million in 2023.
So, while demand has decreased because of higher mortgage costs, supply has also been reduced because of potential sellers choosing to wait for better market conditions.
On a final note, on this subject. There was in fact an increase in net house sales in the first 5 months of this year when compared to house sales in the first 5 months of 2023. However, there was only a 9.9% rise in new homes coming to the market.
FIRST-TIME BUYERS AND THE RENTAL MARKET:
Arguably the ones affected by the rising mortgage rates the most are first-time buyers. Typically, this is due to the larger amount they have to borrow in proportion to the home value. Despite this, they have been more active in the market than expected. This has likely been influenced by the rapidly rising rental costs. This rent increase has motivated many to purchase homes, often with financial help from families.
On that subject, data from the English Housing Survey revealed that 11 out of 30 first-time buyers received financial gifts from their families in the past year, up from 8 out of 30 in 2022. This support has played a vital role in the continued activity in the housing market.
THE BATH PROPERTY MARKET:
So, locally, how is this all affecting the market?
Looking at the monthly exchange of contracts data, the average price paid from may 2019 to April 2020 for a home in Bath (BA1/2) was £497,595.
In comparison, the average price paid between June 2023 and May 2024 has been £575,385. This is a rise in prices of 15.6%.
Now, it is important to stress that Bath home prices have not risen by 15.6%, only the average price paid between the two 12-month periods.
OUTLOOK FOR HOUSE PRICES:
Eighteen months ago, economists almost unanimously predicted a decline in house prices. Now, many forecasters are predicting growth. Estimates vary. Some are predicting an increase of around 4%, while others are suggesting a lower 3% rise. However, stretched affordability is also leading some to predict a flat market over the coming months.
What we can take away is the resilience and impressive ability to weather economic storms in the UK market. Partly thanks to sound lending practices, but also due to stable employment levels, rising wages and family support. While the volumes of sales have decreased from the hefty days seen in 2021, house prices have remained more stable than many predicted.
If there is concern about how the upcoming election may affect the market then do not fret. It is our belief that it will hardly have any effect on the medium-term direction of the property market (On the assumption none of the parties have any creative ‘wacky’ plans in their policies which are not yet published at the time of writing.)
So, as we enter the second half of the year, the property markets resilience will continue to be tested, but foundations laid over recent years are providing a solid structure for the navigation of any future challenges.
Celebrating New Beginnings: Reside Bath Launches Property Sales Service
On the sunny evening of June 6, 2024, our Reside Bath office in central Bath buzzed with excitement and celebration. We were thrilled to host a delightful fizz and nibbles event to mark the launch of our brand-new property sales service. It was a wonderful gathering, attended by our cherished clients, supportive friends, local businesses, and charitable organizations.
As many of you know, Reside has proudly managed and let residential homes in Bath for years. Our excellent customer service, highlighted by our 250 Google reviews and a stellar 4.9 rating, speaks volumes about our commitment to our clients. We are now excited to extend this dedication to helping you sell your homes, bringing our personal and friendly approach to the property sales market.
Ben Bower, our Managing Director, expressed his enthusiasm, saying, “We are incredibly excited to embark on this new journey of selling homes. It’s a natural extension of what we do best – offering personalized, top-notch service to our community.”
Toby Martin, our General Manager, echoed this sentiment: “Launching the property sales service feels like a significant milestone for Reside. We’ve built strong relationships in Bath, and we can’t wait to help even more people find their perfect home.”
The launch event was a splendid success, filled with lively conversations and a shared sense of anticipation for what’s to come. Our guests enjoyed the relaxed atmosphere, and we were delighted to see such a positive response to our new venture.
At Reside Bath, our roots run deep in the local community, and this new chapter is a testament to our ongoing commitment to Bath and its residents. We believe in making every step of the property journey seamless and enjoyable, whether you’re letting, managing, or now selling your home.
Are you considering selling your home? We’d love to discuss how our new sales service can meet your needs. Get in touch with us today to see how we can help make your property dreams a reality.
Thank you for your continued support. Here’s to new beginnings with Reside Bath!
Feel free to contact us:
Phone: 01225 445 777
Email: info@localhost
to learn more about our new property sales service. We look forward to working with you!
With an election just announced, the latest trends in and the summer holidays fast approaching…Toby is here to catch everyone up with the most recent trends from the rental market here in Bath!
As always, the YouTube video is below. Let us know what your thoughts are in the comments. Until next month folks!
Trying to navigate the property market in Bath can be confusing. Market dynamics are constantly evolving and understanding that dynamic is essential. Whether you are looking to buy your dream home or sell a cherished property. Recent Data has revealed a fascinating surge in property transactions across the UK, and Bath is included in this bustling activity.
The property market is currently a robust market, with property sales and listings both increasing significantly as of April 2024. However, what does this mean for you? Is Bath a buyer’s market, favored by those looking to purchase, or a seller’s market, giving an edge on those wishing to sell?
As of Sunday 21st April 2024, the number of UK homes that went under offer (STC) was 10.3% higher than that same period during 2023, with 377,217 homes sale agreed on YTD in 2024, compared to 341,271 YTD in 2023. Interestingly, this is also higher than average seen in 2017, 2018 and 2019.
Every UK region has seen an increase in the number of properties selling STC, but even more interesting is that this is pretty much a uniform growth across ALL regions of the country.
Leading the growth charge is the inner London area with a huge rise of 21%. Closer to home the Southwest saw an increase of 16%.
This increase in the number of properties for sale is good news for buyers as it is giving them a far greater choice of homes.
Alongside this, prospective buyers and sellers are witnessing a rise in confidence. Mortgage rates have begun to decline recently, after a sharp climb last year. Inflation stands at 3.8%, a steep fall since the high of October 2022. Average mortgage rates have settled and many banks and building societies now are offering decent rates.
Despite these positive signs, Bath’s property price levels are expected to hold steady. The market is also expected to remain buyer-friendly due to mortgage affordability issues. The easing of mortgage costs will have sparked interest and dealings in the property market. This revitalisation in the market is anticipated to boost the volume of homes sold after its 11-year low last year.
This is the time to be realistic about pricing your home if you want to bring your property to market. The measurement of whether a market is a buyer or seller’s market is based on the proportion of properties market at ‘Sold STC’ or ‘Under Offer’, compared to the total number of properties on the market. The weight of this percentage cannot be overstated. They directly impact everything from listing prices to negotiation leverage.
Extreme Buyers’ Market (0%-20%)
Buyers’ Market (21%-29%)
Balanced Market (30%-40%)
Sellers’ Market (41%-49%)
Hot Sellers’ Market (50%-59%)
Extreme Sellers’ Market (60%+)
So where does Bath fit within these brackets?
April’s most recent findings show that between the summer of 2018 to April of 2024, the postcode districts of BA1/2 combined indicated an extreme sellers’ market at 70% in the summer of 2022, then throughout 2023 it dropped to the mid-50 % range showing a hot sellers’ market. Now, since February of 2024, the figure stands at 52%.
So, for Baths sellers, we are moving to a market where sellers need to be more strategic, flexible, and patient. Sellers need to be prepared for their home to be on the market for longer with an extended marketing period.
Here at Reside, this extended marketing period is a stage of the selling process we want to make as valuable as possible.
Marketing strategy for property sales has evolved. We now are looking to employ high-quality virtual tours on all our properties and create targeted marketing campaigns with the home being listed on multiple social media channels to gain interest across the local area and across all client bases. All clients have different needs when it comes to viewing and finding properties. Some want to search the more modern media channels, the likes of Instagram and TikTok and are content with virtual viewings on our YouTube channels. Whereas others want to locate their next property via the more traditional methods, on our website or via a Rightmove listing and then view the property multiple times in person, not via a screen.
So, for Bath buyers, you should expect intense competition if you are after highly sought-after properties. Securing a mortgage pre-approval can put you ahead of other prospective buyers. However, Bath buyers also have more leverage in this market. There is the ability to negotiate and put your offer ahead of other offers.
Looking forward, this year we have a general election on the horizon. This inevitably will affect the market, as we expect everything to go on ice three or four weeks before the election itself. There will be plenty of challenges and opportunities for buyers and sellers alike. Staying flexible and informed is vital, remember that buying a home is as much about the journey as it is the destination.
The 13th-19th of May 2024 is mental health awareness week. This year, The Mental Health Foundation is promoting how movement can help improve your mental health.
Research has found that regular movement or physical activity can release the ‘feel-good’ hormones that help boost mood, alertness and self-esteem whilst also reducing stress and anxiety. Just a short 10–15-minute burst of brisk walking can help us to feel better.
There are many points in the day when we find ourselves waiting for things. Waiting in line for your morning coffee, waiting for the microwave to warm up your lunch. We all end up waiting around at some point in the day. During these moments, get in some movement. Even small movements when you are waiting around, such as stretching or even walking in place. These can all help you achieve your goals no matter how big or small. Any movement has been found to help us, so even in those busiest of days, try and get moving.
Movement can also be made more enjoyable by finding an activity to take part in, alone or with others. Exploring the natural environment and trying out new experiences is a great way to get that movement in and maybe meet some new friends along the way.
Movement comes in all different forms and looks different for everyone so don’t go around comparing your movement to others. Remember, you don’t have to be super sporty to get the mental health benefits of movement. Focus on yourself and do not feel pressured to keep up with someone else.
