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5,856 BATH LANDLORDS TO BE HIT BY NEW ECO RULES IN 2030

Posted on by prateek

The rental property market is on the verge of a significant shift, one that will undoubtedly cause concern among landlords across the United Kingdom. The new labour government has made clear its intention to raise the minimum energy performance standards for rental properties, a move that could have far-reaching implications for both landlords and tenants alike.

The proposed change would see the minimum Energy Performance Certificate (EPC) increase from E to C by 2023 and has sparked a mix of uncertainty and anxiety within the rental property sector.

The new regulations are a part of Labour’s wider commitment to combat climate change and enhance the energy efficiency of the UK’s rental homes. This is also a bid to reduce tenant bills given the current energy crisis and cost of living crisis.

The previous conservative government introduced EPC regulations for private rental properties in 2018. This was a part of the broader effort of the previous government to improve the Energy Performance of the UK’s housing stock. Under these regulations, landlords were required to make sure their properties met this minimum standard EPC rating of E, before they were allowed to be placed on the rental market. To support landlords in doing this, exemptions were allowed, and a cost cap was introduced to limit the amount landlords were required to spend on their properties to improve their EPC.

This cap was implemented to reduce the strain on landlords financially, particualry those with older properties. The £3,500 cap covered a range of potential improvements, including insulation, heating system upgrades, and draught-proofing, and was seen as a balanced approach that allowed landlords to comply with the new standards without facing prohibitive costs.

THE SCALE OF THE CHALLENGE FOR BATH LANDLORDS:

The implications of these changes are likely to be profound. Some Bath landlords may decide that the cost of upgrading is simply too high and choose to sell their Bath properties instead. This exodus from the rental sector could exacerbate the current shortage of housing for tenants and hence drive up rents, and make it even more difficult for tenants to find affordable rental homes.

There is also the risk that the increased financial burden on landlords would be passed onto the the tentants in the form of higher rent increases. While the goal of improving the EPC of these homes is to reduce the overall living costs of tenants by lowering their energy bills, this benefit could be offset by the landlords raising their rents to recoup the associated costs.

DOES AGE, TENURE AND TYPE OF HOME MAKE A DIFFERENCE TO THE EPC RATING?:

The EPC scores associated with each band are as follows:

  • Band A – 92 plus (most efficient)
  • Band B – 81 to 91
  • Band C – 69 to 80
  • Band D – 55 to 68
  • Band E – 39 to 54
  • Band F – 21 to 38
  • Band G – 1 to 20 (least efficient)

Looking at only the property type, it certainly affects energy efficiency. Overall, flats and maisonettes are the most ‘energy-efficient’ property type in the UK with a median efficiency score of 73, so a Band C EPC. Detached and terraced properties came in second with a median score of 66 equating to a Band D EPC, and finally in last place was semi-detached houses with a median score of 65, so also a Band D.

Detached homes tend to be more modern and as such, should be expected to have a higher energy rating. There are three external walls exposed in semi-detached houses, which would make you think they would have an overall better average EPC. However, the average age of UK semi-detached homes is older than detached homes and this is where efficiency is lost.

Finally, the terraced home normally only has two external walls, so should be better than semis and detached homes. Yet, terraced homes have solid walls, which make them perform not as well as cavity walls. Finally, flats and maisonettes, are more likely to be more modern and grouped in blocks, making them more efficient.

Breaking down each type into its three tenures of owner-occupiers, private renting and social renting…

Detached properties exhibit relatively similar energy efficiency ratings across all tenures, with owner-occupied homes scoring an average of 64, slightly higher than the private rented sector at 62, with social rented properties at 66. This suggests that while there is a marginal variation, socially rented detached homes tend to be more energy efficient on average.

Semi-detached homes show uniformity in energy efficiency for owner-occupied and private rented properties, both with an average rating of 63. Social rented semi-detached homes, however, are somewhat more efficient, with an average rating of 68. This may reflect better insulation or energy-saving measures in the social housing sector.

Terraced properties reveal a small increase in energy efficiency as we move from owner-occupied (63) to private rented (64) and then to social rented (69). This trend indicates that terraced homes in the social rented sector might benefit from recent energy efficiency upgrades or more rigorous building standards.

Finally, flats and maisonettes demonstrate the highest energy efficiency ratings across all property types, with owner-occupied and socially rented homes both scoring 72, and privately rented properties closely following at 70. The higher ratings in this category could be due to the structural benefits of multi-unit buildings, such as shared walls that reduce heat loss.

In summary, while there are differences in energy efficiency across different property types and tenures, social rented properties generally exhibit higher energy efficiency ratings, particularly in the semi-detached and terraced categories. This may reflect concerted efforts within the social housing sector to improve energy efficiency, possibly driven by policy initiatives and funding targeted at reducing fuel poverty.

AGE:

Finally, let us look at the age of properties and if there is any correlation between age and energy performance rating.

The age of a home is a key determinant of its energy efficiency, largely due to advancements in construction techniques and building regulations over time. Properties built from 2012 onwards tend to have the highest EPC ratings, with a median score of 84 (Band B). Homes constructed between 1983 and 2011 also perform relatively well, with a median score of 72 (Band C).

Moving on to older properties – looking particularly at those built between 1930 and 1982, these have a lower median energy performance rating of 65, equating to an EPC rating of Band D. The least efficient homes are those built pre-1930 which have a median score of 59, ranking them with an average EPC of Band D also.

THE LOCAL BATH PICTURE:

38.36% of the UK privately rented homes are in the proposed minimum EPC standards of A to C. Locally in the South-West, there was an average of 40.63% of homes falling between those marks.

Nationally, 59.46% of private rented homes are in the D and E bands of the EPC rating system and locally again in the south-west, there are 56.46% of private rented homes in this category.

In other words, over 50% of privately rented properties in Bath are within the EPC bands D to E which would mean under these proposed changes they would need to be improved. To visualise this better, there is a heat map below of the homes that would fail the testing under the proposed new law.

BATH LANDLORDS NAVIGATING THE UPCOMING UNCERTAINTY:

In the face of this wave of new challenges, landlords in Bath must adopt a pragmatic approach. While the initial reaction may be one of concern, it is important to consider the long-term benefits of making these energy improvements to your investment properties. Properties with higher EPC ratings are more attractive to tenants, alongside this they also tend to yield higher market value. By investing in upgrades to your investment property, you can not only comply with the new regulations afoot but also enhance the value of your property on the market.

Moreover, there may be an opportunity to mitigate the costs. The government has yet to finalise the details of the new regulations and there is hope that they will introduce measures to support landlords through this transition to more energy-efficient homes. There may be grants, loans or tax incentives available to those who make the improvements and thus offset some of the cost.

Bath landlords should also consider the timing of their investments. While 2030 may seem distant, the scale of work required means starting early could be beneficial. Properties that are upgraded sooner rather than later will be in a better position to attract and retain tenants, particularly as energy efficiency becomes an increasingly important consideration for renters. Furthermore, by acting now, landlords can avoid the rush and potential price increases that are likely to occur as the deadline approaches.

It is also worth considering the broader societal benefits of these changes. Improving the energy efficiency of rental properties is not just about meeting government regulations; it is about contributing to the fight against climate change and helping to reduce the country’s overall carbon footprint. This is something that both Bath landlords and tenants can take pride in, and it aligns with the growing demand for more sustainable living options.

Again, the improvements made to properties will not only benefit current Bath tenants but also increase the long-term viability of the rental market. As properties become more energy-efficient, they will be better equipped to withstand future changes in energy prices and regulations. This future-proofs investments and ensures that landlords can continue to offer quality housing in a competitive market.

FINAL THOUGHTS: A STRATEGIC APPROACH FOR BATH LANDLORDS:

In conclusion, while the proposed changes to EPC requirements may initially seem daunting, they should be viewed as an opportunity rather than a threat. By taking a proactive and strategic approach, Bath landlords can not only meet the new standards but also enhance the value and appeal of their properties. This will not only benefit their portfolios but also contribute to a more sustainable and resilient local rental market.

The key is to start planning now, seek out advice from Letting and Estate Agents such as ourselves or many of the other agents located in Bath, and consider the long-term benefits of these changes. The road ahead may be challenging, but with careful planning and a commitment to improving the quality of rental housing, Bath landlords can navigate this transition successfully.

As leaders in the local property market, feel free to contact us to discuss what has been said in the article as it is everyone’s responsibility to not only meet these new standards but to embrace the positive changes they bring.

FIRST-TIME BUYER HOMES ARE 34% CHEAPER TODAY THAN 35 YEARS AGO –

Posted on by prateek

It may surprise many, but despite the significant rises in inflation over the last few years, buying a house in today’s market is more affordable as a percentage of take-home pay.

First, the average value of a typical first-time buyer’s home has surged by 318% since 1989 (35 years ago for those counting), reaching £314,000 in 2024. So, you would think the title of the blog sounds…well…wrong.

However, the headline price one pays for a home is not relevant when looking at affordability, to measure this we need to look at what the home costs each month out of someone’s salary.

Despite this significant increase in headline pricing of houses over the last 35 years, the monthly mortgage payments that a first-time buyer needs to make today are significantly lower as a proportion of their monthly take-home than in 1989.

According to data from the Nationwide Building Society, today’s first-time buyers in Bath spend 41.9% of their household take-home pay on mortgage payments. This is substantially lower than the 64% required in 1989. This was due to the Bank of England’s base rate being 14%, and base wage rates being lower than they are today comparatively. So we can see a representative 34% reduction in the financial burden that a mortgage payment has today on first-time buyers compared to 1989.

Now, 1989 was 35 years ago and many may argue that as such, it is an irrelevant comparison to today’s economy. However, if we compare the data from today to a closer time, 2007, we can see that even 17 years ago, first-time buyers had to allocate 51% of their household income to their monthly mortgage payments. 17.9% higher than today’s figures which continues to show the relative affordability of a home in Bath over the last few decades.

Now we have established that when comparing % of monthly income to mortgage payments, how has this reduction happened? Well, in real terms (after inflation) incomes have risen and interest rates are much lower. UK household incomes have grown in real terms by 25% in the last 35 years, while interest rates are at 5.25%.

Beyond this, Bath’s first-time buyer affordability is influenced by several factors beyond interest rates and income. One significant aspect is the overall change in the housing market dynamics, including government policies, the availability of mortgages and demographic shifts.

UK GOVERNMENT POLICIES AND MORTGAGE AVAILABILITY:

Government policies supporting first-time buyers, such as Help-to-Buy schemes and favourable mortgage products, have made homeownership more accessible. These policies often provide financial assistance or guarantee parts of the mortgage, reducing the initial financial barriers for first-time buyers. Moreover, the regular availability of competitive mortgage products with lower interest rates and longer repayment terms (35+ years) has eased the burden on first-time buyers.

DEMOGRAPHIC SHIFTS AND URBAN DEVELOPMENT IN BATH:

Demographic changes, including the growth in urban areas and improved infrastructure, have also contributed to the housing market’s evolution. With a strategic location and vastly improved transport links, Bath has become an attractive option for commuters and young families. This has increased demand for housing, driving development projects that cater to the needs of first-time buyers with affordable housing options.

RENT VS BUY IN BATH – ECONOMIC CONSIDERATION:

As rental prices continue to rise at a considerable rate, the economic advantage of buying over renting is becoming more pronounced. Renting often involves annual rent increases, which then in turn offers no financial long-term security. In contrast, buying a home with a fixed-rate mortgage does offer financial predictability in monthly payments and property value appreciation.

However, many people will counter these arguments by saying that first-time buyers need to find large deposits. The average first-time buyer deposit in 2023 was an eye-watering £53,000. However, do remember that this is an average. 95% mortgages with 5% deposits have been available for some time now, but these do come with considerably higher interest rates and require a strong credit rating. For example, a large deposit (25%) will get to a lower interest rate (at the time of writing, the best 95% mortgage/5% deposit was at 5.2%, versus a 75% mortgage/25% deposit mortgage at 4.24%), yet if one extends the number of years one has for the mortgage, then the monthly payments will come down. (Remember to take advice from someone qualified to advise you on this).

Another advantage is that homeowners build equity. This becomes a significant financial asset over time, whereas renters do not gain any form of ownership benefit despite monthly payments.

If we are talking about the long term rental option in life then do be aware that if you retire having not purchased a home then you can qualify for support from the government for rental payments. However, if you are the sole occupant then you may only qualify for a smaller rental property payment and thus have to move upon retirement.

FINAL THOUGHTS:

The Bath property market has seen a roller coaster shift in affordability for first-time buyers over the past 35 years. While property prices have increased substantially, the proportion of household income required for mortgage payments has decreased due to lower interest rates, real-term income growth, and supportive government policies. This improved affordability, combined with the rising cost of rent, makes buying a more attractive and financially sound option for many.

The economic landscape has changed significantly, favouring first-time buyers in ways that were impossible in 1989 or even 2007. As the market continues to evolve, first-time buyers in Bath can take advantage of the current conditions to secure their financial future through homeownership. The reduced financial burden and the potential for long-term gains make now a suitable time for those considering stepping onto the property ladder.

The property Market in Bath 2024 – A strategic guide:

Posted on by prateek

Are you a homeowner in Bath? Are you thinking of moving home in the next 6 to 12 months? Whether you’re aiming to buy your dream home or sell a beloved property, understanding the property market here in the local area is crucial.

You might also be a Bath landlord, possibly looking to sell up your portfolio or add another property to your portfolio.

Also, you could be a first-time buyer wondering if now a good time is to get onto the property ladder.

Regardless of your situation, understanding if the Bath property market favours buyers or sellers is crucial to making informed decisions.

By examining the local market, we can gauge the current market trends, prices, and opportunities, allowing all parties – buyers, sellers, and first-time buyers – to strategically plan their moves.

WHAT SORT OF BATH PROPERTY MARKET ARE WE IN?

Those familiar with our articles will know that the measurement of whether it is a buyers’ or sellers’ market is gauged on the proportion of properties marked as ‘Sold STC’ and ‘Under Offer’ compared to the total number of properties that are currently on the market.

For example, if there are 46 properties sold STC and 100 available/for sale then we are looking at a percentage of 46% which would indicate a sellers’ market. See below for the way we gauge this figure is as follows:

  • 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%+)

The significance of these brackets can’t be overstated. They directly impact everything from listing prices to negotiation leverage.

CURRENT BATH PROPERTY MARKET STATUS:

When we look at the most recent findings, we can see a slight shift in the market. Within the postcode districts of BA1/2, there was an extreme sellers’ market in 2022 at 70%. Then throughout 2023, the Bath property market was in the low/mid 50% range indicating a hot sellers’ market. Then looking back to the start of 2024, the decrease has continued in the way of a buyers’ market and we are now at 51%.

WHAT DOES THIS MEAN FOR BATH’S PROPERTY MARKET?:

FOR BATH SELLERS: We are now in a property market where sellers need to start being more strategic, flexible and patient. You need to brace yourself for a longer time on the property market and make sure you are getting your house valued realistically. Setting the price right is crucial for attracting suitable and proceedable buyers.

So why is this? Well, when we look at the figures, the chances of selling your home in Bath quickly, have dropped over the last few years.

Of all the Bath homes that left estate agencies’ books between July 2022 and June 2023, 65% of these homes sold and completed so the remaining 35% left the market unsold and withdrew. Since January 1st 2024, that figure has dropped again to 58% of properties selling.

So, what can be done to boost your chances of selling your home in today’s market? Well, empowering the use of modern technology is the first port of call. Make sure your agent is listing your home across multiple channels and we are not just talking about the traditional property portals such as Rightmove, we mean social media channels too. Creating virtual tours of your property for the listing is also a great way to better present your home, so make sure your agent is providing this service, especially for higher-end properties. Interactive property listings such as 3D space tours where the user can look all around the property from the comfort of their home is becoming very popular.

FOR BATH BUYERS: Expect intense competition. If you are after highly sought-after properties, such as three-bedroom houses, then securing pre-approved mortgages and positioning yourself in the most proceedable way possible is going to be hugely beneficial and put you ahead of other prospective buyers.

Remember, four out of five sellers are also buyers, so what you may lose on the sale might be compensated for on the purchase. External influences such as global economic trends, inflation, and interest rate repercussions could all cast shadows on the Bath property market.

FINAL THOUGHTS:

As we progress into the eighth month of 2024, the Bath property market presents challenges and opportunities for buyers and sellers.

Understanding these market subtleties is crucial for anyone considering a move, from existing homeowners to seasoned buy-to-let investors, first-time buyers, or those looking to relocate to Bath.

Stay flexible, stay informed, and remember that your home-moving experience is as much about the journey as the destination.

What are your thoughts on Bath’s developing property market since we have a new Government?

Do you anticipate any other shifts or trends in the Bath property market?

What are your local insights and experiences?

Please do share them.

Is Bath becoming overcrowded, or are the numbers misleading?

Posted on by prateek

This wonderful city, with its rich heritage, stunning architecture and deep-rooted history has always been an attractive place to live. However, there has been recent concern that suggests the whole of the UK and thus Bath, may be facing a population crisis, impacting the quality of life for its current and potential future residents.

With 10,128 people living in Bath per square mile, the city appears to be bursting at the seams. However, is Bath truly overcrowded, or are these figures misleading?

UNDERSTANDING POPULATION DENSITY –

To put things in perspective, the UK has a population density of approximately 1,065 people per square mile. This makes it the second most densely populated country in Europe. If we then zoom into the local area, Bath covers a 9.4 square mile area and has a population of 94,800 people. This translates to 10,128 people per square mile. Now this sounds like an extremely high figure at first glance. However, for comparison, there are 33,465 people per square mile in the Lambeth Council Area in London.  

However, back in Bath, let’s break down these figures further. A square mile is a large area and is hard to comprehend, so let’s break it down into acres. 1 Acre is 64m² and is a more relatable unit of measure.

So with this in mind, Bath has an average of 14.43 residents per acre, as Bath covers 6,570 acres.

THE HOUSING SHORTAGE –

The real issue within the city at the moment isn’t just the number of residents in the area, it is the lack of available housing in the market.

To put it simply, there isn’t enough housing to accommodate everyone who wants to live in the city. This shortage is placing immense pressure on public services. Many parents end up struggling to secure their first choice of primary or secondary school for their children, and being able to find a local GP or dentist with available appointments is becoming increasingly difficult.

You would think that with all the new developments being built in and around the city, there would be plenty of new homes. The truth is that even with this number of new homes being built we still aren’t building enough. So why is this?

The source of the issue began back in the 1980s when councils stopped building houses. Before 1979, an average of 147,000 private homes were being built yearly. Since then, around 153,000 private homes have been built per year, which is not a lot different. However, the disparity comes when we look at the amount of homes councils were building per year before and after 1979. Pre 1979, councils were building an average of 165,000 homes per year, and since 1979 they have only been building 11,400 per year, a stark contrast.

In 2007, then Prime Minster, Tony Blair set out a target of 240,000 new homes per year to keep pace with population growth. The conservative government then adjusted this target to 200,000 homes per year. However, since 2012, the UK has been building only 175,641 homes per year. This shortfall has exacerbated the housing crisis, particularly in densely populated cities such as Bath.

Since their landslide victory in the recent general election, the new Labour government has announced ambitious plans to build 300,000 new homes per year. This new initiative aims to address the housing shortfall and improve housing affordability across the country.

The government’s commitment to this large-scale construction project reflects its focus on boosting the housing supply and supporting communities that are in need of new homes. However, assuming they find the people to build all these new homes, where are they going to be building them?

IS THERE SPACE FOR ALL THESE NEW HOUSES?

One might be left to wonder, if the government plans to build that many houses, where are they going to fit on a seemingly crowded island?

Interestingly, a recent government report reveals that residential properties cover only 1.2% of England’s landmass, increasing to 4.7% when we include these properties’ land and gardens. So, as well as homes, how is the rest of the land used in England:

  • Residential Houses and Flats: 1.2%
  • Gardens: 3.5%
  • Shops and Offices: 0.7%
  • Highways (Roads and Paths): 2.3%
  • Railways: 0.1%
  • Water (Rivers and Reservoirs): 2.6%
  • Industry, Military, and Other Uses: 1.4%
  • Open Countryside: 88.3%

This means that 88.3% of the land remains open countryside. If we factor in gardens, which are green spaces, the country is 91.8% green space. Thus, if we were to adopt the 300,000 annual target for the next 20 years, there is ample room to build those additional six million homes, and it would occupy only 0.3% of the country’s land.

SUSTAINABLE DEVELOPMENT:

Focusing back on Bath, the key to solving Bath’s housing crisis lies in sustainable development and innovative urban planning. Massive housing estates and towering apartment blocks are not the answer for this city. Instead, we need to consider creative solutions that allow these new developments to seamlessly integrate with the natural landscape here in and around the city.

THE ROLE OF TECHNOLOGY:

Modern technology can also play a significant role in addressing modern housing challenges. For example, prefabricated and modular homes can be constructed quickly and efficiently and reduce the strain on resources. These types of homes can be designed to be environmentally friendly, incorporating energy-efficient systems and sustainable materials.

Furthermore, advancements in urban planning software also allow for better simulation and planning of new developments, ensuring that they are both efficient and harmonious with the surrounding environment.

COMMUNITY INVOLVEMENT:

Public engagement and community involvement are crucial in addressing Bath’s current housing needs. Bath residents should have a say in how their neighbourhoods evolve. Collaborative planning can lead to more acceptable sustainable solutions. Fostering a sense of ownership of these developments can create pride among residents when developments are community-driven and with their local interests in mind.

FINAL THOUGHTS:

Bath’s apparent overcrowding is a complex issue that goes beyond mere numbers. While the city does have a high population density, the real challenge lies in the availability of housing and the efficient use of space.

By rethinking urban development and leveraging modern technology, Bath can accommodate its growing population without sacrificing the quality of life that makes it such an appealing place to live.

What are your thoughts on the matter? We would love to hear from you.

Property Insights: How to sell your property faster in 2024

Posted on by prateek

One of the most crucial indicators of the health of a property market is the length of time it takes to sell a property. The metric provides insight into supply and demand dynamics, and the market confidence that people have, and also is a market of the efficiency of estate agents in an area.

For homeowners in Bath and investors alike, a better understanding of these trends can help with decision-making. When properties sell quickly, it is indicative of a strong market and reflects a high demand. However, a long sale time often reflects either a surplus of properties on the market or decreased buyer interest.

So, in summary, monitoring the performance of the market is helpful when wanting to make informed decisions about buying or selling.

AVERAGE TIME TO SELL A PROPERTY IN BATH:

Whether you are a Bath Landlord looking to liquidate your buy-to-let investment or a Bath homeowner contemplating selling your home, understanding the latest market trends is crucial. Recent data from Q2 of 2024 provides us with valuable insight into how the local property market has been performing.

Recent independent research indicates that of the 624 Bath homes sold in Q2 of 2024, it has taken an average of 41 days to agree on a sale (Sold STC). This is a notable improvement on Q1 of 2024 where we saw an average time to sell STC of 56 days.

However, this is an average so not all properties sell in this time frame. It is important that we break down the time to sell STC into separate price brackets so we can see what types of properties might sell quicker than others.

PERFORMANCE BY PRICE BRACKET:

The time it took to find a buyer in Bath in Q2 of 2024 by price bracket:

  • Under £100k: 25 days
  • £100k-£200k: 41 days
  • £200k-£300k: 36 days
  • £300k-£400k: 34 days
  • £400k-£500k: 40 days
  • £500k-£1m: 54 days
  • £1m+: 44 days

The time it took to find a buyer on average across the UK in Q2 of 2024:

  • Under £100k: 69 days
  • £100k-£200k: 63 days
  • £200k-£300k: 69 days
  • £300k-£400k: 62 days
  • £400k-£500k: 64 days
  • £500k-£1m: 81 days
  • £1m+: 92 days

TIPS FOR BATH HOMEOWNERS TO EXPEDITE THE PROPERTY SALE:

If you are a Bath homeowner looking to sell quickly, then there are a handful of strategies you can employ to speed up the process.

  1. CHOOSE THE BEST BATH ESTATE AGENT: Selecting a reputable Bath estate agent with a proven track record for providing the best service possible is crucial. Ask all the agents you approach their average time to find a buyer. An experienced agent will be able to provide detailed information that can be tailored to your specific inspiration.
  2. Ensure your Bath Home is a high-quality listing: Make sure your property is listed on all the major property portals. Make sure any agent you use is getting professional photography as a standard as the first impression is crucial. Alongside this make sure that your property has a well-crafted description, allowing readers to better assess if the property is of any interest to them. All of these aspects allow a home to stand out and are vital when coming to a competitive market.  
  3. Effective Marketing: Given the increased number of listings coming to market in recent times (Over 200,000 more homes listed nationally now versus two years ago), additional marketing efforts can go a long way. When listing your property, consider additional marketing efforts that agents may offer such as premium listings, video tours/virtual tours, and social media promotional videos.
  4. Competitive Pricing: Price your property competitively. Overpricing can lead to longer times on the market, while a well-priced property can attract more immediate interest.
  5. Flexibility and Presentation: Be flexible with viewing times. Always make sure that your property is clean and presentable at any time when on the market. For potential buyers, first-time impressions are crucial and a well-maintained and presented property will impress buyers and can potentially expedite the sales process.

TIPS FOR LANDLORDS LOOKING TO SELL:

If you are a landlord looking to sell your rental property, then it is important to weigh up the pros and cons of keeping your tenants during the sales process.

PROS:

If your property is likely to attract another potential investor rather than a homeowner, then having a tenant in place can be advantageous as it can attract another potential landlord due to the appeal of having rental income from day one. Alongside this, tenants who have kept the property well maintained can showcase the value of the property well.

CONS:

On the other hand, if you have tenants in a property who may not cooperate with viewings and do not maintain the property to a high standard then this can deter potential buyers.

Overall, it is crucial to determine the approach that is best for your specific situation. It is crucial to consider factors such as current market conditions, and the type of buyers you are trying to attract. For example, if the property is in a high-demand area with a robust rental market then keeping tenants in may present itself as an attractive quality. However, if your target market is owner occupiers then keeping tenants is going to deter buyers and vacant possession might make the property more appealing.

PROPERTY MARKET CONTEXT:

It is important to note that these statistics only relate to the properties that have successfully sold. Nationally, only about 53% of properties that have been listed have ended up selling through to completion. This means nearly half the properties that come to market don’t achieve a sale. This is often due to poor marketing and agents overpricing the property. As committed property agents in Bath, we are here to help give you the best advice when it comes to either listing your property for rental or for sale and would be happy to help any time.

So, what did the King’s Speech tell us about the housing market?

Posted on by prateek

The state opening of parliament saw the king’s speech set the agenda and main priorities for Kier Starmer’s governments. This year’s speech, delivered by King Charles, is the first for a Labour Government since 2010, following the recent general election. With 30+ bills highlighted by the king, there was nothing seismic for tenants or landlords. However, it is still important to look over what was announced for the property industry. 

  • THE RENTERS RIGHTS BILL

A major focus is the renters’ rights bill. This is labours version of the renters’ reform bill. However, this intended overhaul to the private rental sector in England is set to end the mistreatment of tenants and provide a secure step up for first-time buyers.

Key Proposals Include:

  • Abolishing Section 21 with clear grounds for possession
  • Introducing ‘Awaab’s Law’ with clear legal expectations for landlords
  • Strengthening tenant rights, allowing challenges to rent increases and preventing rental bidding wars.
  • Creating a digital private rented sector database for landlords, tenants and councils.
  • Requiring landlords to consider tenants’ requests to keep pets, with the option for insurance against pet damage.
  • Implementing a ‘Decent Homes Standard’ for the private rental sector.
  • Enhancing local councils’ enforcement powers to target rogue landlords.
  • Establishing a new ombudsmen service for dispute resolution.
  • Making it illegal to discriminate against tenants on benefits or with children.

Most of these points were in the Conservative Renters’ Reform Bill – so there is nothing new here or scary for landlords out there as this has all been in the pipeline for a while.

  • Planning and Infrastructure Bill:

Labour is aiming to accelerate and modernise housebuilding and infrastructure planning laws. This bill focuses on:

  • Increasing the capacity of local planning authorities
  • Modernising local planning committees
  • Rationalisation of the planning system to deliver critical infrastructure
  • Leasehold and Commonhold Reform Bill:

Labour plans to publish draft legislation to extend the Leasehold and Commonhold Reform Act 2024. The main goal this bill is out to achieve is to enhance the rights owners have over their properties. This includes:

  • Addressing ground rent issues
  • Reinvigorating commonholds
  • Putting into action the remaining law commission recommendations

In summary, it is to be noted that these are not laws yet and all these above matters have to pass through a lot of hurdles to come into practice. Still, Kier Starmer’s invigorated government is planning to make sure that these matters are put through and at the top of the agenda.

LABOUR’S HOUSING AND PROPERTY MARKET MANIFESTO: What Bath homeowners & Landlords should know:

Posted on by prateek

Now we know Labour will be taking the political reigns over government and hailing in a new era of policies and promises, particularly in the housing and property markets, what does this manifesto outline in their plans to address the chronic issues of housing affordability, renters’ rights and homelessness?

IMPACT OF THE GENERAL ELECTION ON THE UK PROPERTY MARKET:

Despite the anticipation and uncertainty of the general election, the UK property market has shown resilience and strength. For June, UK house prices for homes sold subject to contract (SSTC) remained sturdy at £348/sq.ft, a 5.1% increase compared to December of 2023. So, from the outset, the UK housing market is still showing growth even with political change.

The volume of property listings has also seen a notable rise, with 7.5% more homes on the market compared to the same period between 2017-2020. This suggests homeowners are remaining confident in the market, despite the recent election.  

To summarise, the general election has not significantly impacted the UK property market. With house prices continuing to rise, and listings and sales still increasing, the market remains strong and provides a positive outlook for the future.

ADDRESSING THE HOUSING SHORTAGE:

Labour has set an ambitious target of building at least 150,000 council and social homes each year. This move aims to tackle the severe shortage of affordable homes in the UK property market. Many of these new homes will be council homes, providing an affordable option for families and individuals. However, there is a severe lack of clarity on where the finances to fund these extensive development projects will come from. The lack of any idea where this £18bn a year will come from is casting doubt on the ability to achieve such an ambitious goal.

ENHANCING RENTERS’ RIGHTS:

With Labour’s plan to abolish Section 21 evictions, which currently allows landlords to evict tenants without a reason, renters can expect more stability. However, this change will only be implemented once the government has reformed the courts, aiming to provide more security for renters. This legal proceeding could take years. Additionally, Labour is seeking to introduce rent control caps to eliminate excessive rent hikes, which has proven contentious in other markets. Historical data from Scotland and worldwide indicate that rent controls often lead to decreased investment in rental properties and a reduction in the overall quality of available housing, causing more harm than good.

Another significant change for the rental sector is the creation of a national landlord register. An initiative aiming to improve the standards and accountability in the private rental sector, ensuring landlords maintain their property to a decent standard.

SUPPORTING FIRST TIME BUYERS (FTB):

Labour’s manifesto also promises to support first-time buyers by reducing the barriers to homeownership. This includes increasing the availability of affordable housing and offering financial incentives. Such measures could stimulate market activity and make it easier for FTB’s to get their first home, although the specifics of these policies remain vague.

PROMOTING HOUSING STANDARDS AND SUSTAINABILITY:

To ensure that homes provide a safe and decent living environment, Labour plans to enforce a Decent Homes Standard.

This standard will focus on improving safety, decency and energy efficiency, setting clear criteria for what constitutes a ‘decent’ home. Additionally, millions of homes will be retrofitted with measures designed to enhance energy efficiency, reduce CO2 emissions and lower energy bills. The initiative reflects and strong commitment to sustainability, which could also create new opportunities and challenges for the property market in Bath.

REGULATING THE HOUSING MARKET:

Labour also intends to reform land and property taxes to ensure fairness and efficiency in the housing markets. Additionally, they aim to curb property speculation and reduce the number of vacant homes by imposing higher taxes on empty properties. These measures could stabilise the market and make housing accessible to more people.

IMPLICATIONS FOR BATH LANDLORDS AND HOMEOWNERS:

These policies will bring changes in the market, especially for landlords. Increased regulation, particularly in the rental sector, will require landlords to ensure they are extracting the maximum value of their investment. With many of these changes on the horizon, Bath landlords should seriously consider making those changes in the coming months.

The push for affordable housing and support for first-time buyers might alter market dynamics in the rental and lower-priced starter home markets. Furthermore, shifting the focus on sustainability in homes will present new and interesting challenges in property development and management, especially in areas with a high level of listed buildings such as here in Bath.

Post-election and beyond, the changes for homeowners will be minimal. The proposed development of new houses across the country will see a slowdown in house price growth, yet this is not always a bad thing. People tend to move when they deem it a necessary change and not based on the price of housing. So, over the next 5 years, it is unlikely that we will see a huge change for homeowners.

Historically, not all manifesto promises come to fruition. So overall for all property owners, it is essential to remain realistic about the changes that may occur over the next five years and potentially beyond.

In conclusion, while Labour’s manifesto presents a comprehensive plan to address the housing issues this nation faces, it will likely take a lot of time until changes are felt in Bath and beyond. Landlords should prepare for a slightly more regulated environment. Yet, we have seen increased regulation over the last decade, so the immediate impacts may be limited for some time as the new government navigates the vast complexities of implementing these ambitious policies into practice.

How to Navigate the Property Market after the election and what could be a ‘Starmer Surge’

Posted on by prateek

How do we navigate, what some people are calling, a potential ‘Starmer Surge’ following the general election?

Despite the anticipation and the ever-continuing speculations around this year’s election, the impact on the property market has been negligible.

Trends in the market, buyer interest, and property values have remained steady, showing no significant fluctuations. So given the political uncertainty, it suggests that factors that affect the property landscape are more economical than political, such as interest rates, demand and supply.

Homeowners in Bath and beyond have maintained their focus on these core elements and have demonstrated resilience to such economic turmoil. So, as political commentators predict a Starmer-led Labour ‘super majority’, could we see another ‘Boris bounce’ in the post-election months like we saw in early 2020?

IF WE DO…WHAT DO WE CALL IT? A ‘STARMER SURGE’?

Before we jump the gun, let’s look at why there are bigger fish to fry irrespective of who wins the election:

Homeowners looking to sell their properties will encounter increased competition. Starmer surge or not, as more homes continue to be listed for sale, the significant rise in mortgage rates has significantly impacted buyers’ incomes and their affordability to buy homes. This has led to a shift in demand. It has also caused price corrections in buoyant regions, especially in the south.

AVOIDING THE OVERPRICING TRAP:

In the initial wake of any election outcome, we will likely see larger estate agents offering overinflated valuations to homeowners, only to suggest a price reduction months later. Larger agencies can afford to do this, but small agencies rely on consistent sales and thus tend to offer more realistic prices the first time of offering.

We have played witness to numerous Bath homeowners being advised to place their properties on the market at elevated prices after significant economic and political shifts. Over time, with few viewings and no genuine offers, they are reducing the asking price. Many homeowners, led with the prospect of achieving more for their property, end up missing out on desired homes. Many may think they are immune to such tactics, but the higher valuation is often very tempting.

It is natural to want to price your home ambitiously. While pricing your property with a high price tag is totally understandable, refusing to adjust the asking price after a few weeks of little to no interest can be a costly error. An overpriced home can stagnate, leading to potential buyers suspecting something is wrong with the property.

A lack of early interest and viewings should be seen as a clear sign that you need to reconsider the asking price. Being responsive and proactive is crucial if there are no serious inquiries or offers within the first few weeks. By doing so, Bath homeowners can avoid the traps of a stale listing and increase their chances of a successful sale and move.

THE CURRENT UK AND BATH PROPERTYMARKET LANDSCAPE:

If one compares the number of UK homes sold year to date (YTD) in 2024 (459,682), we can see it is 11.3% higher than the net sales of 2023, yet we are 22.9% lower than the YTD figure in 2021. However, if we look at the number of UK homes for sale today then there are around 694,000 homes for sale compared to 481,000 homes for sale in May 2021. Now, let’s delve deeper into the stats for specifically the Bath region.

So, linking back to what we have said previously, why is pricing your home right the first time so important? Well, only 51.9% of properties that have left the market since the start of the year have sold to completion. The other 48.1% of properties left the market unsold. So, you can see that by having an almost 50-50 chance of selling, you need to make sure your prices are realistic and that you are getting a great agent to market.

RE-THINKING THE SELLING STRATEGY:

The Bath property market tends to shift collectively. The market remains manageable as long as the homeowners aren’t facing financial losses and can manage an upgrade. Many assume continuous gains when selling their home, but real profit only materializes when one parts with your final property. Once a property is put on the market it is crucial to focus on the online and offline marketing journey. The initial four weeks provide insights into whether the property is priced correctly, gauged by the number of web views on portals, actual viewings and offers received. One strategy employed by some Bath homeowners is to price their home at a slightly lower price to spark more interest and drive up offers.

Boutique agents, such as ours, can offer you a more authentic experience and a realistic valuation in a challenging and ever-fluctuating market.

SWITCHING AGENTS OR GOING ONLINE?

In a slow property market, patience can wear thin. If considering switching agents, sellers should evaluate the current agents’ efforts and communication frequency. Multi-agency agreements can be another option, although these are becoming less popular due to the higher fees often associated.

Online agencies could be another option. However, their one-size-fits-all approach can fail to capture the nuances of individual properties, making them a less effective option in slower markets.

FINAL THOUGHTS:

The current property market is a complex beast. ‘Surge or no surge’ it is all about maintaining a realistic asking price. The freeze on the BoE base rates is a welcome pause. While it won’t create a frenzy like the stamp-duty holiday of 2020, any possible drop in the summer or early autumn will be a welcome respite. With the right strategies and awareness, Bath home sellers can effectively navigate these waters and ensure their property finds the right buyer at the right price.

If you are interested in selling or buying a property, then don’t hesitate to get in touch with the team. Contact information can be found at the top of the page.

Understanding the Property Market: Analysis of the £/sq.ft trends in the UK, southwest and Bath

Posted on by prateek

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.