Well, what an insightful day the team here at RESIDE had during the trip to London to attend this year’s Propertymark One.
For those who do not know, Propertymark is the leading membership body in the UK for all property agents, big or small, sales or lettings. They provide us with professional credibility and help businesses in the sector be equipped with the tools and training needed to tackle all the hurdles we face and provide us with the ability to grow our professional knowledge, allowing us to gain valuable and nationally recognised qualifications within the industry so you can trust us with your homes.
Since its inception last year, Propertymark One was back again to gather many familiar and influential speakers within the industry to provide us all with their valuable insight into the market over the coming months. With an election on the horizon, we were told all about how this is looking to shape the market over the next 6 months and what this means for us all.
Alongside some incredible talks on the main stage, there were also a host of ‘breakout’ rooms throughout the day which delved further into the nuances of the industry, and focussed on topics the speakers specialised in. Talks here included the way that AI may be changing the way we in the property landscape do business in the future, the benefits of marketing not only our properties but our personalities and knowledge of the market and showcasing industry insights, and the way we brand our business to stand out and be ahead of competitors.
One of these sessions was co-hosted by our very own GM, Toby Martin. Toby and his band of property marketing pros gave us all a valuable look at what it takes to become a ‘marketing superhero’, and gave an amazing insight into the reasons why we as property experts, shouldn’t be all sell sell sell when it comes to social media and our online presence, but become more tell tell tell. Tell the potential landlord or home buyer why we should be the ones they chose to come to through telling our audience about the trends in the market and becoming a place people come to for knowledge within the market. Tell everyone who we are as individuals. People buy from people and we want people to feel they can approach us, know us and trust us before they’ve even stepped foot into our office.
The whole team here are bursting with excitement at being within this market over the coming months. This year’s Propertymark One was a great day, and we can’t wait to be back next year. With the general election brewing and almost upon us, with potentially a new party coming in for the first time in 14 years, the market is due to see some new, and hopefully welcome, changes. We look forward to sharing all this with you as we find out more.
(p.s. We got to see location, location, locations’ one and only Phil Spencer in person!)
If you want to list your rental property with us, find a new place to rent, or begin searching for your new home to buy, then get in touch with our team. All details can be found in the ‘contact’ tab above. We can’t wait to hear from you.
Across the UK the property market has met significant challenges over the past 18 months and yet in its wake has displayed a strong resilience to its forces. Many analysts predicted back in the autumn of 2022 that the country would see a dramatic downturn in house prices driven by economic uncertainty, cost of living crisis, and ever-increasing mortgage rates.
However, contrary to the dire forecasts predicted many months ago, the prices of houses across the country have remained relatively stable. This article will dive into the reasons behind this unforeseen occurrence and provide valuable insight for both homeowners and landlords alike.
ECONOMIC PREDICTION VS REALITY:
Liz Truss vs the lettuce…who remembers that? Well during her time in office, she and the treasurer at the time, Kwasi Kwarteng, produced their highly controversial ‘mini-budget’. Following this, there were widespread predictions that there would be a dramatic fall in house prices and some forecasts even predicted that we would see a decline of 20-35%. Yet, these never materialised. The decrease has been instead modest, with land registry figures showing about a 3.12% decline over the previous 18 months.
If we look at the past 12 months, British house prices have increased a measly 0.89%, when compared to this time in 2023. So, why were the forecasts so inaccurate?
IMPROVED LENDING PRACTICES:
During previous economic downturns, people have often cited banks’ poor lending standards. However, changes to mortgage regulations require banks to ensure borrowers can afford their monthly repayments, even if rates increase significantly.
This precaution has provided a substantial buffer for homeowners, enabling them to cope with the rising rates.
For example, in 2007 shortly before the global financial crisis, many borrowers did not need to prove their income to their banks. The 2014 MMR changes addressed this issue, ensuring that lending was based on sound financial footing. Consequently, many homeowners could still afford their mortgage when rates increased recently.
EMPLOYMENT & WAGE GROWTH:
Another crucial element has been the relatively stable employment situation. Although the UK experienced a brief recession over the winter, unemployment rates have remained low at 4.3%. For comparison, the unemployment rate during the 08/09 financial crisis was at 8.5%. Moreover, the average wages (inc. bonuses) have increased by 5.7% over the past year, reaching their record high at an average of £682 a week.
The combination of low unemployment and increased wage rates has led to fewer homeowners being forced to sell their homes due to financial difficulties. Banks have also been proactive and provided those with financial difficulties solutions to these problems with interest-only payments and extended mortgage terms to help them manage their repayments.
SUPPLY AND DEMAND DYNAMICS:
The impact of economic challenges on the property market has been more evident in transaction volumes than in prices. Typically, there are about 1.16 million house sale completions annually in the UK. However, during the ‘race for space’ seen at the back end of the COVID lockdowns, this number surged to 1.48 million. It then dropped back down to 1.26 million in 2022 and further to 1.02 million in 2023.
So, while demand has decreased because of higher mortgage costs, supply has also been reduced because of potential sellers choosing to wait for better market conditions.
On a final note, on this subject. There was in fact an increase in net house sales in the first 5 months of this year when compared to house sales in the first 5 months of 2023. However, there was only a 9.9% rise in new homes coming to the market.
FIRST-TIME BUYERS AND THE RENTAL MARKET:
Arguably the ones affected by the rising mortgage rates the most are first-time buyers. Typically, this is due to the larger amount they have to borrow in proportion to the home value. Despite this, they have been more active in the market than expected. This has likely been influenced by the rapidly rising rental costs. This rent increase has motivated many to purchase homes, often with financial help from families.
On that subject, data from the English Housing Survey revealed that 11 out of 30 first-time buyers received financial gifts from their families in the past year, up from 8 out of 30 in 2022. This support has played a vital role in the continued activity in the housing market.
THE BATH PROPERTY MARKET:
So, locally, how is this all affecting the market?
Looking at the monthly exchange of contracts data, the average price paid from may 2019 to April 2020 for a home in Bath (BA1/2) was £497,595.
In comparison, the average price paid between June 2023 and May 2024 has been £575,385. This is a rise in prices of 15.6%.
Now, it is important to stress that Bath home prices have not risen by 15.6%, only the average price paid between the two 12-month periods.
OUTLOOK FOR HOUSE PRICES:
Eighteen months ago, economists almost unanimously predicted a decline in house prices. Now, many forecasters are predicting growth. Estimates vary. Some are predicting an increase of around 4%, while others are suggesting a lower 3% rise. However, stretched affordability is also leading some to predict a flat market over the coming months.
What we can take away is the resilience and impressive ability to weather economic storms in the UK market. Partly thanks to sound lending practices, but also due to stable employment levels, rising wages and family support. While the volumes of sales have decreased from the hefty days seen in 2021, house prices have remained more stable than many predicted.
If there is concern about how the upcoming election may affect the market then do not fret. It is our belief that it will hardly have any effect on the medium-term direction of the property market (On the assumption none of the parties have any creative ‘wacky’ plans in their policies which are not yet published at the time of writing.)
So, as we enter the second half of the year, the property markets resilience will continue to be tested, but foundations laid over recent years are providing a solid structure for the navigation of any future challenges.
Celebrating New Beginnings: Reside Bath Launches Property Sales Service
On the sunny evening of June 6, 2024, our Reside Bath office in central Bath buzzed with excitement and celebration. We were thrilled to host a delightful fizz and nibbles event to mark the launch of our brand-new property sales service. It was a wonderful gathering, attended by our cherished clients, supportive friends, local businesses, and charitable organizations.
As many of you know, Reside has proudly managed and let residential homes in Bath for years. Our excellent customer service, highlighted by our 250 Google reviews and a stellar 4.9 rating, speaks volumes about our commitment to our clients. We are now excited to extend this dedication to helping you sell your homes, bringing our personal and friendly approach to the property sales market.
Ben Bower, our Managing Director, expressed his enthusiasm, saying, “We are incredibly excited to embark on this new journey of selling homes. It’s a natural extension of what we do best – offering personalized, top-notch service to our community.”
Toby Martin, our General Manager, echoed this sentiment: “Launching the property sales service feels like a significant milestone for Reside. We’ve built strong relationships in Bath, and we can’t wait to help even more people find their perfect home.”
The launch event was a splendid success, filled with lively conversations and a shared sense of anticipation for what’s to come. Our guests enjoyed the relaxed atmosphere, and we were delighted to see such a positive response to our new venture.
At Reside Bath, our roots run deep in the local community, and this new chapter is a testament to our ongoing commitment to Bath and its residents. We believe in making every step of the property journey seamless and enjoyable, whether you’re letting, managing, or now selling your home.
Are you considering selling your home? We’d love to discuss how our new sales service can meet your needs. Get in touch with us today to see how we can help make your property dreams a reality.
Thank you for your continued support. Here’s to new beginnings with Reside Bath!
Feel free to contact us:
Phone: 01225 445 777
Email: info@localhost
to learn more about our new property sales service. We look forward to working with you!
With an election just announced, the latest trends in and the summer holidays fast approaching…Toby is here to catch everyone up with the most recent trends from the rental market here in Bath!
As always, the YouTube video is below. Let us know what your thoughts are in the comments. Until next month folks!
Between 2020 and 2022, demand for properties in the UK far exceeded supply. This drove rents to unprecedented levels.
Here in the southwest, for example, the average rent has risen from £913 per calendar month (PCM) in 2016 to £1,339 PCM year to date in 2024.
Despite this, the last 12 months have seen a slight increase in the number of properties available for rent, both nationally and regionally. This is lending to a more balanced market. This article will explore these trends and see if the same is happening within Bath.
NATIONAL AND REGIONAL TRENDS IN BY-TO-LET:
Nationally, the rental market has witnessed a notable shift in the last 12 months. During the pandemic, many factors contributed to the surge in rental prices. There was a migration of people seeking a larger living space and avoiding the disruption of new housing developments. As restrictions eased, the rental market began to show signs of stabilisation. In a bid to help mellow the rising rental prices, there has been a slight uptick in the supply of rental properties.
In April of 2023, the average rent achieved for a new UK rental property was £1,641pcm. By April of 2024, this has increased by 8% to £1,772pcm.
This is a positive sign for rental prices levelling out, as only 12/18 months ago, the increase was in the mid to late teens.
The southwest continues to be ahead in this national trend of rent increases. In April of 2023, the average rent of a new property coming to the market was £1,166pcm. This increased 12.3% in April of 2024, to £1,309pcm.
The increased supply of rental properties has brought relief to tenants, who had been grappling with 20%+ increases in rent per annum for some types of properties over the last few years.
So, landlords, what does this mean for you?
Despite this rise in supply, the demand for rental properties continues to remain very robust. This ensures that yields continue to be attractive for landlords.
THE BATH RENTAL MARKET:
On a local level then what is going on?
Well, a similar trajectory can be seen here in Bath. Post-pandemic, rents have been surging due to that imbalance in supply and demand for rental properties.
For this analysis, we are looking at the first four months of 2023, versus the first four months of 2024. In 2023, 1,227 properties came to market in the Bath area (For this the postcodes are BA1/2) and attained an average rental value of £1,684pcm.
IN THE FIRST FOUR MONTHS OF 2024, 1,158 PROPERTIES HAVE COME ONTO THE RENTAL MARKET ACHIEVING AN AVERAGE RENTAL VALUE OF £1,860PCM, A RISE IN RENT OF 10.5%.
So, for landlords present and future, is buy-to-let a savvy scheme to invest in, in 2024?
Despite recent market adjustments, Bath remains a compelling investment for several reasons. They are as follows:
Strong Rental Demand:
Bath’s rental market continues to benefit from strong demand. The city’s attractive location, good transport links, and quality of life make it a desirable place to live, ensuring a steady stream of potential tenants.
Affordable Property Prices:
Compared to other regions, Bath offers a relatively affordable price. This combined with solid rental yields and long-term, stable, capital growth, makes it an appealing option for buy-to-let investors.
Economic Growth and Development:
Bath continues to experience solid economic growth. Ongoing developments within infrastructure and amenities are not only increasing the quality of life for residents but it is also boosting the rental market by attracting more people to the area.
Long-Term Investment Potential:
Recent stabilisation in the rental market suggests a move towards long-term stability. For landlords, this means the potential for consistent long-term rental income and growth over time.
WHAT ABOUT OUR TENANTS IN ALL OF THIS?
Tenants may be feeling concerned about all of this. Burdened by the recent increases in rent, it is important to note that these rent rises have aligned with the rise in inflation over the medium term since 2016. So, in real terms, the cost of renting has not disproportionately increased. However, some tenants are still continuing to struggle due to a lack of rise in wage rates.
There is a glimmer of hope for those tenants wishing for a more balanced market and reduced rate of rent. With more supply leading to more opportunities for renters to find a home that suits their needs and their budgets, it is likely there is more place for tenants to get their rent down.
THE FUTURE OUTLOOK FOR BUY-TO-LET IN BATH:
Looking ahead, the market here in Bath appears poised for continued growth and stability. This is due to the combination of strong demand, affordable prices, and the city’s continued economic growth. Mixing this all together leads to Bath remaining a valuable investment opportunity for potential Landlords.
Now is an opportune time for those sitting on the fence about the buy-to-let market to enter. The local and national stability of rental prices indicates a mature and sustainable market that has reduced risk and volatility.
Trying to navigate the property market in Bath can be confusing. Market dynamics are constantly evolving and understanding that dynamic is essential. Whether you are looking to buy your dream home or sell a cherished property. Recent Data has revealed a fascinating surge in property transactions across the UK, and Bath is included in this bustling activity.
The property market is currently a robust market, with property sales and listings both increasing significantly as of April 2024. However, what does this mean for you? Is Bath a buyer’s market, favored by those looking to purchase, or a seller’s market, giving an edge on those wishing to sell?
As of Sunday 21st April 2024, the number of UK homes that went under offer (STC) was 10.3% higher than that same period during 2023, with 377,217 homes sale agreed on YTD in 2024, compared to 341,271 YTD in 2023. Interestingly, this is also higher than average seen in 2017, 2018 and 2019.
Every UK region has seen an increase in the number of properties selling STC, but even more interesting is that this is pretty much a uniform growth across ALL regions of the country.
Leading the growth charge is the inner London area with a huge rise of 21%. Closer to home the Southwest saw an increase of 16%.
This increase in the number of properties for sale is good news for buyers as it is giving them a far greater choice of homes.
Alongside this, prospective buyers and sellers are witnessing a rise in confidence. Mortgage rates have begun to decline recently, after a sharp climb last year. Inflation stands at 3.8%, a steep fall since the high of October 2022. Average mortgage rates have settled and many banks and building societies now are offering decent rates.
Despite these positive signs, Bath’s property price levels are expected to hold steady. The market is also expected to remain buyer-friendly due to mortgage affordability issues. The easing of mortgage costs will have sparked interest and dealings in the property market. This revitalisation in the market is anticipated to boost the volume of homes sold after its 11-year low last year.
This is the time to be realistic about pricing your home if you want to bring your property to market. The measurement of whether a market is a buyer or seller’s market is based on the proportion of properties market at ‘Sold STC’ or ‘Under Offer’, compared to the total number of properties on the market. The weight of this percentage cannot be overstated. They directly impact everything from listing prices to negotiation leverage.
Extreme Buyers’ Market (0%-20%)
Buyers’ Market (21%-29%)
Balanced Market (30%-40%)
Sellers’ Market (41%-49%)
Hot Sellers’ Market (50%-59%)
Extreme Sellers’ Market (60%+)
So where does Bath fit within these brackets?
April’s most recent findings show that between the summer of 2018 to April of 2024, the postcode districts of BA1/2 combined indicated an extreme sellers’ market at 70% in the summer of 2022, then throughout 2023 it dropped to the mid-50 % range showing a hot sellers’ market. Now, since February of 2024, the figure stands at 52%.
So, for Baths sellers, we are moving to a market where sellers need to be more strategic, flexible, and patient. Sellers need to be prepared for their home to be on the market for longer with an extended marketing period.
Here at Reside, this extended marketing period is a stage of the selling process we want to make as valuable as possible.
Marketing strategy for property sales has evolved. We now are looking to employ high-quality virtual tours on all our properties and create targeted marketing campaigns with the home being listed on multiple social media channels to gain interest across the local area and across all client bases. All clients have different needs when it comes to viewing and finding properties. Some want to search the more modern media channels, the likes of Instagram and TikTok and are content with virtual viewings on our YouTube channels. Whereas others want to locate their next property via the more traditional methods, on our website or via a Rightmove listing and then view the property multiple times in person, not via a screen.
So, for Bath buyers, you should expect intense competition if you are after highly sought-after properties. Securing a mortgage pre-approval can put you ahead of other prospective buyers. However, Bath buyers also have more leverage in this market. There is the ability to negotiate and put your offer ahead of other offers.
Looking forward, this year we have a general election on the horizon. This inevitably will affect the market, as we expect everything to go on ice three or four weeks before the election itself. There will be plenty of challenges and opportunities for buyers and sellers alike. Staying flexible and informed is vital, remember that buying a home is as much about the journey as it is the destination.
5TH JUNE 2024. If you haven’t listed your property by then, you may not be in the new home of your dreams before Christmas.
As May comes around, the anticipation of a warm summer is here. Thoughts of hot beaches, ice creams and refreshing smoothies are here. Your summer holiday is nearly booked and the idea of making plans for Christmas seems a million miles away.
Yet, many people want to be in their new homes for Christmas, so they can celebrate and have more space for when the in-laws come for that roast turkey dinner.
So, if this is you, then you need to get moving. The time to move before Christmas is running out.
Recent statistics show some thought-provoking trends. From April 2023 to April 2024, UK properties took an average of 69 days from listing with an agent to an agreed sale and a further 112 days to completion (keys and monies changing hands). So, in total, that’s 181 days. In comparison, between April 2022 to April 2023, it only took 47 days to find a buyer, and a further 124 days from agreement to completion.
In simpler terms, if you listed in the first week of May, you would be moving in around the second week of November.
On a local level, Bath has seen some similar statistics. Typically, it took 49 days to find a buyer and 130 days for legal completion. This meant it took just over six months from listing to completion.
A picture has been painted. Moving home is not as simple and swift a process as people believe. These figures show that late May to early June is your window of opportunity if you want to be in your new home before Christmas.
For those wanting to make the move, the message is clear, act sooner rather than later. This isn’t just about moving house. This is about ensuring that by the time the festive season rolls around, and the December frost covers the streets of Bath, you are warm and settled holding a mulled wine with your feet up.
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)
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.
Internet sensation and talented artist Mr. Doodle (Sam Cox) is coming to Bath this week to showcase his incredible talents. With nearly 3 million followers on Instagram, Mr. Doodle has taken his artwork far and wide and presented his talents everywhere he goes.
Most recently, he has produced a freehand sketched mural of his signature artwork on the front facia of a parking complex in Texas to promote his new film, The Trouble with Mr. Doodle, and prior to this he created a piece with iconic video game character Pac-Man at the center of attention whilst in Tokyo.
(Source: Mr. Doodle on Instagram)
Mr. Doodles fabulous creations will be taking over (Literally not figuratively) an exhibit in the Holbourne Museum from the 3rd of May until the 1st of September this year.
Alongside this there will be other exciting installations across the city, including him covering a phone box in Southgate shopping center which we will be there covering.
(Source: Mr. Doodle on Instagram)
For more information, search for Mr. Doodle visits Bath on your web browser of choice and that will all be available. For more “what’s going on’s” in and around Bath, then follow our social media channels linked below – and come back to this blog soon.
