Uncategorised - Reside Bath

Bath House Sales Up 14.5% on 2023 – What does this mean for the local market?

Posted on 05/12/2024 by prateek

The number of agreed UK property sales up to the 22^nd of November 2024 is 18% higher than a year ago. Breaking this down further, as of 22^nd November 2024, 1,009,340 homes were sold subject to contract (SSTC), an 18% increase from the number of homes SSTC in the same period of 2023. The average UK selling price has also significantly risen, reaching £361,000 compared to £326,000 in 2023, an 11% rise.

This doesn’t mean house prices have risen by 11%. Across the country, there has been a shift and more high-value properties have been selling this year compared to last. It is due to this factor that using £/sq.ft is a better judge of house price increase. The pound per square foot has risen only by 2.7% over the last year, climbing from £331 to £340 (which is in line with the major house price indicators).

A BUYER’S ADVANTAGE –

Sellers currently face a market where realism is the key to a good, and fast, sale. As of the 22^nd November 2024, 2,061 Bath homes had been sold STC, a 14.5% increase from the 1,800 homes sold in the same period last year. The average Bath selling price has risen slightly, reaching £586,652 in 2024, compared to £562,066 in 2023 (a rise of 4.3%).

The £ per square foot on the homes sold STC for Bath has been £472 per square foot in 2024, compared to £482 per square foot in 2023.

In 2023, 59.64% of Bath homes that came to market were successfully sold (completed and exchanged). In 2024, that figure has slipped to 58.94%. This change reflects buyer expectations and affordability shifts, emphasising the need for careful pricing strategies. (Bath – BA1/2 – 1^st Jan to Nov 22^nd).

National figures showed that 52.96% of properties were sold (exchanged and completed) in 2023, only slightly improving to 53.62% in 2024.

If you think about it, you have just over one in two chances of selling if you put your home on the market; therefore, accurate pricing is more important than ever, but it isn’t the only factor. Homes that stand out in today’s market often do so because of exceptional marketing. Virtual or video tours, high-quality photography, and targeted social media campaigns are no longer optional—they’re essential. For sellers looking to maximise interest and achieve a strong price, presenting their property in the best possible light is a non-negotiable step.

BATHS UNIQUE MARKET DYNAMICS

Bath’s property market has always had its quirks, and this year has been no exemption. Different postcode areas are experiencing varying levels of activity. In some areas of the city (and villages), homes are selling quickly, while in others, buyers have more room to negotiate, whether on price, fixtures, or even completion dates.

This means that flexibility can be an asset for buyers. Expanding your search radius or considering properties slightly outside your initial criteria could reveal opportunities that others have overlooked. For sellers, understanding these local variations is critical to setting the right price and crafting an effective marketing plan.

A Balanced Perspective: The Seller-Buyer Dynamic

It’s worth remembering that over four out of five sellers are also buyers. This dual role often means that what might be perceived as a loss on one side of the transaction can be recouped on the other. A slightly lower sale price on your current property may open the door to negotiating a better deal on your next purchase.

External Factors Shaping the Bath Market

No property market operates in isolation, and Bath is no exception. National and global trends will inevitably influence it.

That said, Bath’s property market has shown resilience in the past, which is likely to continue. While challenges remain, stabilising mortgage rates and a steady economy offer hope for a more active market in the coming months.

Final Thoughts

As Bath’s property market moves into 2025, success will hinge on understanding the current dynamics and being prepared to adapt. For buyers, this means having your finances in order and being ready to act quickly when the right property comes along. For sellers, setting a realistic asking price for your Bath home ensures your property is effectively marketed from day one.

The journey requires a thoughtful approach, whether buying, selling or keeping an eye on the market. There are both opportunities and challenges ahead – but with the right strategy, the path forward is clear.

What’s your perspective on Bath’s property market? Have you noticed similar trends, or do you see things differently?

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

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Bath retirees turning to rental properties: what it means for landlords.

Posted on 28/11/2024 by prateek

Recent figures from the Office for National Statistics (ONS) revealed that across the UK, nearly half a million households are occupied by individuals aged 65+ living in the private rental sector. This represents 6.7% of all OAPs now renting privately.

Ten years ago, only 267,000 households were occupied by individuals aged 65+ who lived in privately rented housing. At the time, this represented just 4.39% of OAPs. So, it is clear from the outset that the dynamics in the market have changed significantly, with over a 50% increase. So, what does this data mean?

WHY ARE RETIREES RENTING?

A survey by The Prudential a few years ago shed light on this upcoming trend. Nearly 60% of older renters have always been renting. Around 20% have sold their homes to address debt challenges, and another 10% have sold their properties intentionally with the desire to rent in older age, often using the proceeds to fund their retirement or allow more freedom and less maintenance.

Financial stability is increasingly important. Men in Bath, upon reaching 65, have an average life expectancy of 19.6 years, while women can expect to live an additional 22.1 years. Interesting when compared to the national averages of 18.1 years for men and 20.6 years for women.

However, longer life expectancies come with the challenge of sustaining finances over an extended period, particularly as inflation, rising living costs, and low interest rates erode retirement savings.

THE RENTAL LANDSCAPE IN BATH.

30% of people who live in Bath and North East Somerset (BANES) are over 65 years old. A significant majority of over 65’s, 76%, own their homes outright. 6% own their homes with a mortgage and then social housing accounts for 12%. This leaves 5% of over-65s in the area being privately rented.

This figure, whilst small, is on the rise. Anecdotal evidence suggests that property professionals are seeing more retirees in Bath choosing to sell larger homes they own and downsize into rented accommodation. This reflects a desire for more simplicity and financial flexibility upon retirement. Selling a home with or without a mortgage offers up substantial equity which can then be passed down to future generations via better investments, funds and allow a more comfortable retirement.

Renting also offers predictability. With a fixed monthly expenditure that typically includes property maintenance and potentially even services like gardening, retirees can budget with confidence. This arrangement removes the financial and logistical burdens of homeownership, such as unexpected repair costs, allowing for a more carefree retirement. Renting also offers flexibility, enabling older tenants to relocate with ease if their circumstances change, such as moving into assisted living or care facilities.

OPPORTUNITIES FOR BATH’S LANDLORDS:

This shift presents a unique opportunity for Bath’s buy-to-let investors. Older tenants often seek properties that are low-maintenance and designed to suit their needs. Semi-detached bungalows, particularly those located near essential amenities such as bus routes, GP surgeries, and shops, are in high demand. These homes are often preferred for their accessibility and practicality.

For landlords, catering to this demographic can yield excellent returns. Retirees typically value stability, making them reliable, long-term tenants. Furthermore, if a property meets their needs and provides additional conveniences like included maintenance services, they are often willing to pay a premium rent for the right home.

The Bigger Picture for Bath Landlords

As the population ages, the demand for rental properties suitable for older tenants is likely to grow as the Centre for Economics and Business Research (CEBR) stated in the report this summer that they expected the number of OAPs privately renting to double in the next decade. This trend presents both challenges and opportunities for landlords in Bath. By understanding the needs of this demographic and tailoring their portfolios accordingly, landlords can not only secure steady returns but also play a role in supporting the housing needs of an ageing community.

For the private rental sector, this demographic shift highlights the importance of creating housing solutions that balance profitability with social responsibility. As leaders in the Bath property market, we must champion approaches that meet these emerging needs while promoting long-term sustainability in the rental sector.

The New Stamp Duty Increase – Another hurdle for Bath Landlords.

Posted on 04/11/2024 by prateek

The last decade has been a relentless barrage of new regulations and tax changes. From the 3% stamp duty surcharge introduced in 2016 to section 24’s limitation on mortgage interest relief, then the new renters rights act slowly passing through the government and its removal of section 21 eviction notices and finally recent reductions in capital gains tax allowances – it is fair to say that Buy-To-Let (BTL) investors have been under relentless pressure.

Now to add to this long list, the looming EPC regulation change, requiring properties to meet tougher energy performance standards, and the latest increase in stamp duty – raising its surcharge from 3% to 5%, there feels like another layer of financial burden on top of another, and it is no wonder that many landlords are feeling stretched to the limit and want to draw a line and sell up.

However, although these changes all seem daunting – let’s take a step back and evaluate the bigger picture.

For landlords with a long-term view, this extra cost is unlikely to fundamentally alter the financial viability of their investment. This one-off expense becomes ‘lost in time’ when spread out of the lifetime of an investment. Yes, it is a higher upfront cost, and as with any additional cost, it is not welcome. However, for most BTL investors, this increase won’t dramatically change the fundamentals. In fact, it’s like when the initial 3% surcharge was implemented in 2016; back then, very few landlords were deterred, and the market quickly adapted.

Another reason to stay positive is the remarkable growth in the rental sector seen over the last few years. In the last few years, rents have risen by 8-10% (Largely fueled by wage growth and continued supply/demand imbalance in the market) and are set to continue growing thanks to minimum wage rises, further bolstering the case for long-term BTL investment.

Furthermore, capital gains tax, though perceived as a deterrent, was reduced last year for higher-rate taxpayers, from 28% to 24% on residential property, which helps retain more of the gains made on property sales. Labour has made no change to that.

In real terms, UK house prices are now 15% cheaper than three years ago, another boost to the incentive to invest in BTL. So, ultimately, for savvy investors, now is potentially a more favourable time to secure a good deal for long-term gain. There will be a higher upfront cost that will have to be absorbed, but with a long-term vision, your investment can definitely be profitable.

While landlords are certainly facing pressures from the new EPC regulations in the coming years, history shows that when the government mandated the EPC rating to an “E” in 2018, it tempered the impact to avoid a market disruption with a maximum of £3,500 maximum spend to reach that level. We’ll likely see a similar approach this time if it risks an excessive withdrawal of rental properties from the market.

Ultimately, the buy-to-let market remains one of the few investment avenues where one can achieve both income and capital growth.

Bath landlords may need to consider this stamp duty increase when negotiating purchase prices, but for those with a long-term perspective, this is simply another bump in the road.

While change is inevitable, BTL still represents a sound investment – especially for those who are in it for the long haul.

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!

The Reality for Bath’s Young People: Where Do They Live and What’s Next?

Posted on 21/10/2024 by prateek

It is an open secret that Bath’s younger generations are struggling to get themselves onto the property ladder. With the ever-increasing cost of living and stagnating wages, alongside stricter mortgage criteria, it is no wonder that fewer under 34s’ are becoming homeowners.

How bad is the situation? Is there any hope up on the horizon for young people to find a place to call home?

BATHS HOUSING CRISIS: THE STRUGGLES OF THE UNDER 34s.

According to statistics from the Bath and North East Somerset Council (BANES), there are 79,250 households in total. Of these, 1.8% are headed by individuals aged between 16-24, whilst 10.6% are between 25-34.

Compared with the 2.6% of all UK households that are made up of people aged between 16-24 and the 13.5% made up of people aged between 25-34.

Looking specifically at the 16-24 age bracket within Bath, the households can be broken down as follows:

Owned outright: 3.3%
Owned with a Mortgage: 14.6
Social Housing: 22.5%
Private Rented: 59.5%

Nationally, this compares owned outright 3.6%, 10.2% owned with a mortgage, 22.8% social housing, and private renting 63.5%.

Next, moving onto the 25-34 year old age bracket breakdown:

Owned outright: 3.8%
Owned with a Mortgage: 43.8%
Social Housing: 11.2%
Private Rented: 41.2%

Nationally, this compares owned outright at 4.1%, owned with a mortgage at 35.5%, social housing at 17.7% and private renting at 42.7%.

For a city like Bath, these numbers paint a bleak picture of property ownership in the younger generation. But why is this happening?

Well, the answer is multifaceted. It is not just an issue around the rising price of housing. Wages have not risen in line with inflation and with lenders becoming more conservative, the amount of deposit required to secure a mortgage is higher than ever before. For young people who are already grappling with student debt and rising rental costs, saving for a deposit is becoming an insurmountable task.

THE SHIFTING SANDS OF HOMEOWNERSHIP:

Yet, while the prospect of homeownership for the under-34s in Bath is slipping further out of reach, it is worth putting these figures into a wider context. Homeownership is not something that young people have done en masse, at least not in recent decades of the 2000’ and 2010’s.

While the Baby Boomer generation often bought homes in their early to mid-twenties back in the 70s and 80’s, the dynamics of homeownership have changed dramatically since then.

The average first-time buyer in 1980 was 26, now the average age has gone up to 31, and 34 in London.

In the 1980s, when the housing market was more accessible, people were more likely to buy a home at a younger age. However, as times have changed, so have social and economic conditions. The cost of housing has skyrocketed, whilst wages have not kept up at the same pace. Furthermore, younger people today are often burdened with additional expenses that weren’t as prevalent a few decades ago such as student debt loans and a cost-of-living crisis. This combination is making it much harder for younger people to save for a deposit and thus secure a mortgage offer.

Now, whilst this may sound doom and gloom for Bath’s younger generation, there is a silver lining if we look beyond the short term and consider the longer term market conditions. I countries like Germany, homeownership doesn’t typically happen until later in life. Germans tend to rent for longer (often well into their 30s or 40s) and then purchase a home later in life. When they do finally buy, they have more financial stability, and higher incomes and often make larger down payments. The result of this? Less debt and more security later in life.

This delayed homeownership is becoming more common in the UK, and Bath is no exception. What we may be seeing is not a permanent decline in young homeowners, but a shift in the timing that people buy. Instead of purchasing homes in their 20s, more people are waiting till their mid-30s or even early 40s to buy, when they have some more financial stability.

THE HIDDEN £28bn BATH AND NORTH EAST SOMERSET EQUITY:

One key factor we cannot ignore is the £28bn worth of equity tied up in the homes of the 50+ years old generations in the BANES area.

Many older residents, who bought homes decades ago when property prices were affordable, are now sitting on this substantial equity. As these homeowners begin to downsize or pass down their properties to their children and relatives, we may yet see a significant transfer of wealth to the younger generations. This could provide a lifeline for many would-be homeowners who are currently priced out of the market.

In Bath, where family connections are strong, and homeownership is passed down through generations, this transfer of wealth is likely to have a profound impact on the housing market in the coming years. Many younger people will likely find themselves with the capital to afford a downpayment on a home or be able to inherit the estate their parents currently reside in.

WHAT DOES THIS ALL MEAN FOR THE FUTURE OF BATH HOMEOWNERSHIP:

The future is not all doom and gloom. Yes, the current statistics suggest that homeownership is out of reach for the majority of under 34s, but this is not a permanent trend. There are several reasons to be optimistic about the future. Firstly, as more young people prioritise their savings and look for ways to access the property ladder, we could see a shift in homeownership rates among the under 34s. Previous schemes such as Help to Buy and shared ownership can also provide much-needed assistance for young people to get onto the property ladder.

Secondly, the aforementioned generational wealth transfer will hopefully provide younger people more opportunities to purchase homes, either through direct inheritance or financial gifts. Regardless, the generational shift will most likely play a significant role in shifting the current market trends.

There is absolutely no denying that the current market conditions are making it incredibly tough for young people to get onto the property ladder, but for those willing to plan and save strategically with the right help and support, many young people across the UK and Bath will find that they can, in fact, become homeowners.

It is clear the property market in Bath is changing and will continue to do so. Young people may not be buying homes at the rate they used to, but by staying informed, seeking the right opportunities and staying patient, you will be able to afford your first home.

The situation is far from hopeless, Baths future homeowners are out there, they’re just waiting a little longer to step onto the ladder.

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!

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!

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!