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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.

1/12 UK homes for sale have owners who only moved in during the pandemic. Why are so many moving so soon?

Posted on by prateek

The UK property market saw significant shifts during the pandemic. Many people during and after the pandemic, having spent many months staring at the 4 walls of their homes, that it wasn’t up to standard and no longer met their needs or desires. Due to this many people decided to move and find a place that at the time, they thought would be a great choice for them. However, four years later, many who moved are beginning to realise this move may have just been an impulsive decision due to being locked up in their homes and are now realising that their new lives may not be all that they wanted. Obviously, this is not the only reason for the sudden and dramatic shortening in the time of people living in their houses, but it is certainly a big reason. This article will investigate why many are selling so soon after buying and the reasons why.

THE POST LOCKDOWN BUYING FRENZY:

After the first lockdown in spring 2020, remote working became the norm for many people in most industries. This change not only brought about a re-evaluation for most people about their living situation, but the knock-on effect brought unprecedented changes to the property market.

People were filled with the desire to attain more indoor and outdoor space. This desire drove a huge surge in property purchases, particularly in suburban and rural areas. Buyers were eager to escape the confines of inner-city life and wanted to seek more spacious and comfortable homes. What drove this boom, even more, was the ‘stamp-duty holiday’, favorable economic conditions and low interest rates. Buying property was more attractive than ever, and many people ended up taking advantage.

HOW OFTEN TO PEOPLE MOVE HOME?

Traditionally, homeowners in the UK tend to stay in their homes for a long period of time. There are 17,693,200 owner-occupied homes in the UK. In 2023, a total of 1.02 million homes were sold. This figure includes 231,000 new homes, which means 790,500 of these sales were to existing homes. This is a notable statistic as it means only 4.48% moved home in this period, implying that on average homeowners move every 22 years.

With this information in mind, one would expect to see the number of homeowners looking to move so soon after buying relatively small. Therefore, we decided to analyse the properties for sale in Batha and see if the statistics match these anecdotal suggestions.

There are 807 properties available for sale in the Bath area.

The breakdown of these properties is as follows:

  • Detached houses: 21
  • Semi-detached: 6
  • Terraced: 35
  • Apartments: 17
  • Bungalows: 5

Out of these 807 properties, 84 of these were purchased in the pandemic years of 2020/21. So why are 10.4% (8.2% across the UK) of bath owners looking to sell so soon after buying?

WHY ARE PEOPLE SELLING SO SOON?

There are a few factors we are noticing which are contributing to this trend. They are as follows:

  1. Overestimating the appeal of suburban/rural living: During the pandemic, the idea of moving to a more peaceful setting such as the Mendips, Cotswold’s or suburban Bath may have seemed, at the time, idyllic. However, the reality of rural and suburban life is hitting the ex-city folk harder than they perhaps thought they would. Longer commutes to work, fewer close amenities, and a vastly different pace of life have meant the rural dream has not lived up to the expectations many had.
  2. Changes in work arrangements: Whilst remote working was a widely adopted practice during the early days of the pandemic and remained the same for many companies for a few years now, many companies are beginning to call employees back to the office be it full or part-time. This arrangement is making it difficult for those who moved far from the office to remote areas to commute once or twice a week, and it is encouraging owners to move back closer to their place of work
  3. Economic pressures: the financial landscape has also changed since the height of the pandemic. Rising interest rates are making homeownership less affordable and leading them to sell up sooner than planned.
  4. Market opportunities: The current property market might allow Bath homeowners to make a profit. With Bath property values increasing over the past few years, some owners might be looking to capitalize on this and sell their homes at a higher price.

IMPLICATIONS FOR THE BATH PROPERTY MARKET:

These post-pandemic realisations for homeowners are more than likely going to be causing a significant increase in the number of properties coming to market over the next couple of years. We are already seeing higher-than-average numbers of homes for sale since 2017. Between 2017 and 2019 the average number of homes for sale year on year in May was 632,132. In May 2024 alone, we saw 694,281 homes for sale.

This increase in the supply of homes for sale means Bath home sellers need to be realistic with their asking prices as competition is greater.

To back up the idea that realistic pricing is vital if you want to move home. Only 53 out of every 100 properties leaving the UK estate agents’ books since Jan 2024 have been sold through to competition. The other remaining 47% have come off the market unsold.

Moreover, this trend could signal a shift in how people view homeownership post-pandemic. The rush to buy during the pandemic might have been more about the impulsive immediate needs and wants during those days cooped up in the house round the clock. However, as the world continues to return to normality, people’s housing preferences and requirements have evolved again and will likely have changed since those days four years ago. This is leading to dynamic movements in the property market.

CONCLUDING THOUGHTS:

The trend of pandemic-era homebuyers in Bath putting their properties back on the market is highlighting the fluid nature of the current property. Whilst individual reasons for selling are varied and complex, the market is widely reflecting a broader change in how we live and work. As the market continues to adjust to post-pandemic realities, buyers and sellers in Bath must stay informed and able to adapt to be able to navigate these changes successfully. So, if you want to keep informed then be sure to follow us across our social media channels.

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.

Propertymark One 2024

Posted on by prateek

Well, what an insightful day the team here at RESIDE had during the trip to London to attend this year’s Propertymark One.

For those who do not know, Propertymark is the leading membership body in the UK for all property agents, big or small, sales or lettings. They provide us with professional credibility and help businesses in the sector be equipped with the tools and training needed to tackle all the hurdles we face and provide us with the ability to grow our professional knowledge, allowing us to gain valuable and nationally recognised qualifications within the industry so you can trust us with your homes.

Since its inception last year, Propertymark One was back again to gather many familiar and influential speakers within the industry to provide us all with their valuable insight into the market over the coming months. With an election on the horizon, we were told all about how this is looking to shape the market over the next 6 months and what this means for us all.

Alongside some incredible talks on the main stage, there were also a host of ‘breakout’ rooms throughout the day which delved further into the nuances of the industry, and focussed on topics the speakers specialised in. Talks here included the way that AI may be changing the way we in the property landscape do business in the future, the benefits of marketing not only our properties but our personalities and knowledge of the market and showcasing industry insights, and the way we brand our business to stand out and be ahead of competitors.

One of these sessions was co-hosted by our very own GM, Toby Martin. Toby and his band of property marketing pros gave us all a valuable look at what it takes to become a ‘marketing superhero’, and gave an amazing insight into the reasons why we as property experts, shouldn’t be all sell sell sell when it comes to social media and our online presence, but become more tell tell tell. Tell the potential landlord or home buyer why we should be the ones they chose to come to through telling our audience about the trends in the market and becoming a place people come to for knowledge within the market. Tell everyone who we are as individuals. People buy from people and we want people to feel they can approach us, know us and trust us before they’ve even stepped foot into our office.

The whole team here are bursting with excitement at being within this market over the coming months. This year’s Propertymark One was a great day, and we can’t wait to be back next year. With the general election brewing and almost upon us, with potentially a new party coming in for the first time in 14 years, the market is due to see some new, and hopefully welcome, changes. We look forward to sharing all this with you as we find out more.

(p.s. We got to see location, location, locations’ one and only Phil Spencer in person!)

If you want to list your rental property with us, find a new place to rent, or begin searching for your new home to buy, then get in touch with our team. All details can be found in the ‘contact’ tab above. We can’t wait to hear from you.

Rental Market Update: May 2024

Posted on by prateek

With an election just announced, the latest trends in and the summer holidays fast approaching…Toby is here to catch everyone up with the most recent trends from the rental market here in Bath!

As always, the YouTube video is below. Let us know what your thoughts are in the comments. Until next month folks!

Mental Health Awareness Week 2024 (13th-19th May 2024)

Posted on by prateek

The 13th-19th of May 2024 is mental health awareness week. This year, The Mental Health Foundation is promoting how movement can help improve your mental health.

Research has found that regular movement or physical activity can release the ‘feel-good’ hormones that help boost mood, alertness and self-esteem whilst also reducing stress and anxiety. Just a short 10–15-minute burst of brisk walking can help us to feel better.

There are many points in the day when we find ourselves waiting for things. Waiting in line for your morning coffee, waiting for the microwave to warm up your lunch. We all end up waiting around at some point in the day. During these moments, get in some movement. Even small movements when you are waiting around, such as stretching or even walking in place. These can all help you achieve your goals no matter how big or small. Any movement has been found to help us, so even in those busiest of days, try and get moving.

Movement can also be made more enjoyable by finding an activity to take part in, alone or with others. Exploring the natural environment and trying out new experiences is a great way to get that movement in and maybe meet some new friends along the way.

Movement comes in all different forms and looks different for everyone so don’t go around comparing your movement to others. Remember, you don’t have to be super sporty to get the mental health benefits of movement. Focus on yourself and do not feel pressured to keep up with someone else.

If you want to read more about this then head over to Boost your mental health by moving more | Mental Health Foundation – and learn more about all the amazing things you can do.

Bath Rental Market Review: April 2024

Posted on by prateek

It’s that time of the month again! Toby is back with this month’s review of the Bath rental market.

This month Toby talks us through his key statistics, the lack of rental property stock, and an update on the renters reform bill. Click the big red play button to find out more!

Bath Property Owners Reap £12,417 Yearly gains since 2001.

Posted on by prateek

Yes, that’s correct. On average, since the start of the turn of the millennium, homeowners in the Bath area have seen gains at an average of 8% growth year-on-year.

A ‘steady as she goes’ restriction in house price increase has been seen over the last few years since the pandemic hit, and this is likely to continue beyond 2024. However, we must look at the LONGER term. As much as we love to look into the short-term gains, the housing market is a medium to long-term investment for many people, so it is important to look at the house prices over this time. So, let’s look into the numbers:

ALL HOMES – (2001) £156,197 –> (2024) £442,791 = +£285,594 (8%/Yr)  

APPARTMENTS – (2001) £116,254 –> (2024) £314,394 = +£198,140 (7.4%/Yr)

TERRACE/TOWNHOUSES – (2001) £139,962 –> (2024) £494,790 = +£354,828 (11%/Yr)

SEMI-DETACHED –  (2001) £193,857 –> (2024) £402,413 = +£208,556 (4.7%/Yr)

DETACHED – (2001) £320,152 –> (2024) £643,462 = +£323,310 (4.4%/Yr)

Now, when looking at these numbers it is easy to forget that there has been 79% inflation over those 23 years, which eats into ‘real’ value. So, taking that into account, the real gains are as follows:

ALL HOMES -> +£158,928 (£6,910/year)

APPARTMENTS -> +£110,262 (£4,794/year)

TERRACE/TOWNHOUSES -> +£197,456 (£8,585/year)

SEMI-DETACHED -> +£116,058 (£5,046/year)

DETACHED -> +£179,917 (£7,822/year)

So, after inflation has been accounted for, the annual profit for an average Bath home stands at £6,910. This also shows that despite events such as the 08/09 credit crunch, which saw house prices plummet by over 15%, homeowners in Bath have still faired well over the longer term.

SO WHAT ABOUT BATH LANDLORDS?

Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000’s and the 2010s, there is still net growth in the size of the private rented sector each year. The simple fact is many Bath landlords remain keen on expanding their property portfolios for the longer term, despite current higher tax rates.

Alongside this, the younger generation sees renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation.

However, Bath Buy-To-Let Landlords must adopt a more thoughtful strategy to maintain a good return on investment. With changing laws around taxes and the balances in power, achieving returns similar to that of the last couple of decades requires more effort. If you are seeking advice on a long-term goal you have in mind for your property portfolio, then get in touch with our team here.

RESIDE Bath talks with Off the Record – BANES

Posted on by prateek
Toby’s interview with the wonderful people from OTR.

Recently RESIDE Bath’s General Manager, Toby Martin, sat down and spoke with Off The Record – Bath and North East Somerset (OTR, BANES) to discuss the important work they do in the area to support young people ages 10-25 who are living, working or studying in the area. Currently they support over 2,000 people a year and have over 30,000 contacts on record. So, their work here in Bath is very important.

 OTR are celebrating their 30th anniversary this year and we wanted to show our support. OTR are providing a multitude of services to help every young person struggling, including services such as – counselling, listening support, youth participation, advocacy, support for care leavers and a LGBTQ+ focused youth group. OTR believes that all young people should represented fairly and push a focus on equality for all, regardless of the race, gender or sexual orientation.

If you want to hear what James, Ella and Andros had to say to Toby about their experiences working with Off the Record alongside their own personal experiences and how we can all help make a difference then the video is attached, and you can sit down and watch right here within this blog.

If you want to learn more about OTR and what they do for our local community then visit their website, take a look and see if you can get involved.

Find out more about Off the Record

What to read MORE from RESIDE? Click ‘read more’ to see our most recent blog entries!

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