Starting with the bigger picture,
over the last 12 months in the UK, 1,061,557 properties were sold with a total
value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties
sold with a total value of £405.56bn, so it can be seen the number of people
moving house has dropped by over a third over the last decade
.
Whether you are a landlord,
homeowner or tenant, it’s always important to keep an eye on the Southampton property
market, not just from your point of view, but also from every player’s point of
view. Over the last 12 months, 5,773 properties have sold (and completed) in Southampton,
worth £1.487bn. Interestingly the number of properties changing hands in Southampton
has also dropped when compared to a decade ago.
It might surprise you that first
time buyers in 2017 will benefit from a slight decline in Southampton
buy-to-let investors.
Those looking to buy a home in the spring
and summer of 2017 will face a far less competitive Southampton property market
than the same time of year in 2016, when the urgency to beat the buy-to-let
stamp duty hike was in full swing.
Many landlords brought forward their
purchases to beat the tax, and since then, the number of buy-to-let purchases
has dropped slightly. First time buyers have taken advantage of that and have
increased their buying. In fact, looking at the Bank of England figures, this
is what UK lenders have lent on buy-to-let properties versus first time buyers over
the last 12 months …
Q4 2015 - £1bn buy-to-let mortgages vs
£1.31bn for first time buyers
Q1 2016 - £1.35bn buy-to-let mortgages vs
£1.08bn for first time buyers
Q2 2016 - £760m buy-to-let mortgages vs
£1.28bn for first time buyers
Q3 2016 - £827m buy-to-let mortgages vs
£1.42bn for first time buyers
When looking at the figures for Southampton
itself, first time buyers have borrowed more than £277.4m in the last 12 months
to buy their first home. This is a ringing endorsement of their confidence in
their jobs and the local Southampton economy. Those 20 and 30 something’s who
are considering being first time buyers in 2017 will find that the number of
properties on the market has never been as good as it has for quite a while,
meaning you have more choice of properties and less competition from so many
buy-to-let landlords than a year ago.
Rightmove announced nationally that new
seller enquiries are 26% up on the same time last year giving the stoutest
indication that we may see a slight ease in the lack of properties on the
market. When I look at Southampton, at this moment in time there are 1,159
properties for sale, compared to 1,042 properties a year ago. All this will be
welcome news amongst Southampton first-time buyers with a combination of a proportional
reduction in new investors and landlords.
If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Southampton Property Market, together with regular postings on what I consider the best buy to let deals in Southampton (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch.
If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.
Email me on brian.linehan@belvoirlettings.com or call on 023 8001 8222.
Don't forget to visit the links below to view back dated deals and Southampton Property News.
Twitter, https://twitter.com/sotonbelvoir
LinkedIn, https://www.linkedin.com/in/brianlinehan
LinkedIn, https://www.linkedin.com/in/brianlinehan
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