Southampton OAPs are Getting Jobs and Downsizing Properties to Beat the Cost-of-Living Crisis

Southampton OAP retirees have to make tough choices with the onset of the cost-of-living crisis.

 

Growing inflation, unpredictable financial markets and the high cost of living mean many former retired Southampton people are returning to work in what has been dubbed the ‘great unretirement’. Some are even bringing forward their downsizing house move.

Looking at the changing job market, July saw the most significant month-on-month rise in OAPs working since records began in the 1990s when 1 in 23 of all the UK’s OAPs went back into employment.

That now means ….

 4,106 Southampton over 65s are in gainful employment

 (i.e., 1 in 8 of them).

As a backdrop, the number of working 65-year-olds and above has been increasing since the mid-nineties when 1,765 Southampton OAPs were employed. Yet, July's figures were the largest monthly jump on record by quite a distance.

Looking at the changing property market, I have been speaking to many Southampton OAP homeowners who are having to bring their downsizing plans forward several years to survive the cost-of-living crisis. The money generated from the downsizing will cover their housekeeping and massive energy bills.

So why would someone want to downsize? Mostly, their homes are too big for their needs as their children have flown the nest decades before. The government classifies a property as under-occupied if it has two or more spare bedrooms.

 

How big is the under-occupation issue in the UK?

 

Of the 4.52 million British homes owned by those aged 65 and over, 3.04 million have at least two spare bedrooms (i.e., under-occupied). Looking locally…

12,824 of the 29,791 Southampton OAPs have two or more spare bedrooms.

 You might ask why this is important.

Well, to start, it's holding back Southampton families that need the bedrooms and space these larger houses offer if the older occupants won't move on. Also, these larger homes cost more to run in terms of energy bills and other things such as building insurance and council tax.

 

From October (even with the recent energy bill cap) it will cost on average £354 per month in gas and electricity alone for a large Southampton 4-bed detached home (where occupants are home all day).

 

So why are there so many mature homeowners in their 70s, 80s and even 90s still living in houses that are too large for their day-to-day requirements? There are several reasons for this. One is the obvious emotional attachment to the family home they have often owned since the 1970s and 1980s. The second is to escape the hassle and costs of the house move, and finally, the small number of suitable Southampton properties for them to buy to attract them to make a move.

The growing energy bills have provoked many of those mature Southampton homeowners, who maybe can’t or do not wish to get a job, to re-evaluate their home life strategy. I am seeing an ever-increasing number of mature Southampton homeowners downsizing (or, as I prefer, rightsizing) to diminish their monthly expenditures.

So how much could mature Southampton homeowners gain by downsizing?

The numbers are intriguing when looking at the average difference between the sale price and the subsequent purchase price of the average downsizer.

Southampton downsizers could unlock an average of £175,400 per household.

Not only will Southampton homeowners earn this lump of cash for their extended retirement, but they will also save themselves around £176 per month in lower energy bills, buildings insurance and council tax bills.

So, what are the options for mature Southampton homeowners?

Waiting 12 months to make a move might mean you are putting your Southampton home on the market as every other OAP homeowner puts their home on the market, meaning the dynamics of the local property market will probably be a lot different. Thus, the equity you release on the downsize could be much lower.

Yet some of you will be worried about finding your next home. Not to worry.

At our agency, we do things differently than many other Southampton estate agents. We can find you a buyer, then put everything on ice and go and find you a property to buy. We guarantee you won't be made homeless if you or we can't find another home for you to move to.

We call it peace of mind!

If you would like a chat about this, without any obligation, feel free to call Belvoir on 02380018222 or email me brian.linehan@belvoir.co.uk.

Will the Southampton Property Market Continue to Boom?

 

All the signs are that the Southampton housing market is sat on good foundations, yet one key hazard could still scupper the market.

 

‘UK Property Prices Rising at Record Levels’ is the headline of many newspapers. In the last few weeks, the Halifax reported they had grown by 6.5% in the last 12 months, whilst the Nationwide said 7.1% and not to be outdone, the Government’s own Land Registry said 8.6%. Nothing new there then you might think, don’t UK house prices always increase?

 

Actually, they don’t, as many Southampton homeowners will remember 2009, when they dropped by 19%. Also, some more mature Southampton homeowners will remember the early 1990’s where house prices dropped just over 40% over 4 years (after the 1989 property crash). So, the increase in UK house prices over the last 12 months has mystified all the forecasts made by most economists as…

 

house prices were forecast to drop during the pandemic because during the previous six UK recessions experienced since WW2, house prices have always fallen sharply in real terms.

 

Yet 2020 was different with house price growth increasing at its highest rate since 2014 as the substantial Government support programmes (including Bounce Back Loans, grants and furlough) has mollified the hit to household incomes. Add to that the pent-up demand from the Boris Bounce, all the people working from home wanting an extra room for an office and therefore needing to move, plus the stamp duty tax holiday, with the cherry on the cake of 0.1% Bank of England interest rates keeping borrowing affordable. This has meant…

 

Southampton property values are 7.8% higher than a year ago.

 

Yet the affordability of property is a big issue going forward. By the time of the height of the last property boom in 2008, the national ratio of average property values to earnings had risen from 5.1 in 2000 to 8.8 (i.e. the average house price was 8.8 times the size of the UK’s average person’s annual earnings). We then had the property crash in the proceeding years, and the ratio dropped to around late six’s/early sevens. However, over the last few years, the ratio has been steadily rising and now with the recent growth in demand for property (the five reasons mentioned in the previous paragraph), the ratio has now smashed past nine. Looking locally…

 

the ratio of average property values to earnings in Southampton as a comparison was 3.9 in 2000, rising to 6.0 in 2008, dropping to 5.3 the year later when the Credit Crunch hit, and now currently stands at 6.8.

So, are we heading for another house price crash? Maybe, maybe not - because the House Price to Earnings ratio only tells us part of the story. Another indicator of the property market is mortgage affordability, which measures the proportion of mortgage payments to average incomes. For all mortgage holders, in 2015, this stood at 24.13% and today it is only just above the national long-term average of 25%, demonstrating that property is still affordable.

 

Yet, the life blood of the property market are first-time buyers. The long-term average percentage of income which goes on mortgage payments for first-time buyers is 33%. Just before the 1989 property market crash, this stood at 54%. Whilst just before the 2008 property crash, it reached 49%. Today, it stands at 31.7% (and the reason it’s so low even with record high property prices is low interest rates, because when mortgage interest rates are low, this permits people to afford larger mortgages, which enables them to bid up house prices).

 

So why aren’t more first-time buyers buying more homes? Well in fact they are buying more homes. At the turn of the Millennium, just over half of 25yo to 35yo were homeowners and by 2014, this had dropped to just a third, although since then it has increased to 41%. Now with the reintroduction of the Government backed 95% mortgages in April, this demand will continue further.

 

Once furlough ends, unemployment will doubtless rise in the following 12 months, yet the economy is more than likely to be in a boom phase, so by the spring/summer of 2021, the unemployment rate should start to fall.

 

So, does everything look great for the Southampton property market?

 

Before you get the Champagne out, there is a cloud on the horizon - the possibility of higher interest rates.

 

Undoubtedly, for the next few years, interest rates will not go up (and if they do – it will only be nominally). However, down the line it may be a different tale. Interest rates are used to control a number of economic factors, one being the currency and secondly inflation.

 

As many suggest, if we get an economic boom in the next 12 to 18 months, as we come out of lockdown, this will put upward pressure on the price of goods and services. Normally, when prices go up (inflation), to ensure that inflation doesn’t get out of control, interest rates are normally increased to dampen down the inflation.

 

So, will interest rates rise? Undoubtably they will. Southampton homeowners and buy-to-let landlords should seriously consider protecting themselves with fixed rate mortgages (yet 3 in 10 mortgagees are still on variable rate mortgages!). I believe we will see some inflation in the order of 3% to 5% in the coming 24 to 36 months, yet the interest rates won’t be enabled to bring it down. We had a similar case in the early 2010’s when we had a mis-match of demand and supply of goods, and inflation spiked to 5%, before returning back to its long term 2% average quite quickly thereafter.

 

The Chancellor will also encourage some inflation to reduce the ‘real’ cost of the Billions he has borrowed because of the pandemic, yet won’t want to see interest rates increase to take the cost of the borrowing upwards.

 

If you are considering moving home or buying/selling a buy-to-let property in Southampton in the next 12 to 18 months, and want a chat about your options, don’t hesitate to drop me a line.

 

Finally, these are interesting times ahead – I would love your thoughts on this matter. Please do share them in the comments.

CLICK HERE TO FIND OUT HOW MUCH YOUR SOUTHAMPTON PROPERTY IS WORTH

 

If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.

 

If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.

 

 

Don't forget to visit the links below to view back dated deals and Southampton Property News.

 

Blog, http://southamptonproperty.blogspot.co.uk/

 

Facebook, https://www.facebook.com/belvoirsouthampton/

 

Twitter, https://twitter.com/sotonbelvoir

 

LinkedIn, https://www.linkedin.com/in/brianlinehan

 

Website, https://www.belvoir.co.uk/offices/southampton

Will Southampton House Prices Fall in 2022?

One of the most astounding things that has happened in the last 12 months was something that did not happen. Even after the country saw the deepest recession since the Great Freeze of 1709 with GDP dropping 28% in one quarter, one would have expected a large fall in Southampton house prices would follow. Yet…

 

Southampton house prices are 7.8% higher than 12 months ago.

 

Even though buying and selling Southampton property was put on ice for the first time in the history of the Southampton property market last spring due to the Covid 19 outbreak, as the Southampton property market wobbled on the edge of a deep recession, it stepped back in early summer and now it is rocketing upwards as…

 

13.4% of Southampton homes are selling within a fortnight of coming to market.

 

Some commentators have suggested the end of the Stamp Duty holiday together with the ending of the furlough scheme on the 30^th September 2021 could be the catalyst for a drop in house prices. Even the Government’s own regulator of finances expects UK house prices to fall around a couple of percentage points in 2022 whilst some others have predicted a drop of around 5% as unemployment levels increase post furlough.

 

However, other property market forecasters believe that property values in 2022 won’t drop against the background of robust British economic recovery in Q3 and Q4 of 2021.

 

What do I think will happen to the Southampton property market in the next 12 months?

 

On the positive side, what I do know is the Stamp Duty holiday enabled Southampton homebuyers to spend those tax savings on the price paid for their Southampton home and that certainly accounts for some of the uplift in house prices mentioned above.

 

Also, the historically low interest rates that have supported Southampton homebuyers’ affordability for the last 13 years since the Credit Crunch has continued. Secondly, with people spending many months working from home, this has seemed to have polarised people’s inclination to make lifestyle changes. Finally, the Government has recently introduced 5% deposit mortgages for first-time buyers. All these factors will fuel demand and hence may cause house prices to rise.

 

On a more cautious note, I do not believe these very sturdy Southampton house value rises of the past year will persist at these levels for the next 12 months. With buyers having to use many thousands of pounds on Stamp Duty, the price they pay for their Southampton home will be curtailed, meaning property values by definition will ease. 

 

The simple fact is the British economy has yet to feel the full effect of its largest recession since 1709, and we must remain considerate about the long-term effects of the economy (and unemployment levels) on the property market.

 

These are interesting times for the Southampton property market. If the price you want to achieve for your Southampton home is the most important thing, now as opposed to 2022 might be a good time to consider placing your property on the market.

 

Don’t forget, you can still put your Southampton property on the market, find a buyer and then go and see what is available to buy. Many buyers will wait for you to find a property, yet if they can’t/won’t – you won’t be made homeless. English property law means you can still come away from the sale and you won’t be forced to sell. If you would like to know a bit more about that or any aspect of buying or selling property in Southampton, drop me a message or call me.

CLICK HERE TO FIND OUT HOW MUCH YOUR SOUTHAMPTON PROPERTY IS WORTH

 

If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.

 

If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.

 

 

Don't forget to visit the links below to view back dated deals and Southampton Property News.

 

Blog, http://southamptonproperty.blogspot.co.uk/

 

Facebook, https://www.facebook.com/belvoirsouthampton/

 

Twitter, https://twitter.com/sotonbelvoir

 

LinkedIn, https://www.linkedin.com/in/brianlinehan

 

Website, https://www.belvoir.co.uk/offices/southampton

Panic Buying in the Southampton Property Market?

Would it surprise you that there are 49% fewer properties for sale today in Southampton than a decade ago? Property values are much higher than a decade ago and the property market at the moment in Southampton is on fire. In all my years as an agent, I have never seen it like it is at the moment. Many people are saying it’s reminiscent of 1988 when dual-MIRAS relief was abolished by Nigel Lawson, as people are paying top dollar for property because they are buying property like there is no tomorrow.

 

65.8% of properties on the market in Southampton are sold stc

 

In a ‘normal property market’, that figure would be between 30% to 40%. There is no rhyme or reason behind it because it’s not as if we are going to run out of property to sell (unlike the panic buying of loo rolls last year in the supermarkets). With such a buoyant Southampton property market, being adept to state what your Southampton property is worth is exceptionally problematic.

 

This is further exacerbated by the lower-than-average properties on the market at the moment. To give you an idea of the issue …

 

there are 1,479 properties for sale in Southampton today,

compared to 2,910 a decade ago.

 

When there aren’t many properties on the market, to gain your instruction some estate agents will value your Southampton property by giving you an over inflated suggestion for the asking price. Why do they do that when the considered wisdom is estate agents only get paid when they sell it?

 

Well would it surprise you that many (not all) estate agents pay their employees a bonus to put your property on to the market and then pay a further bonus when they get you to reduce the asking price? Some estate agents know the fastest way to get your property to market is to be optimistic on the asking price to secure your property for sale, then work on you to reduce your asking price after it has been sitting on the market for a few months.

 

Nothing wrong with that you might say, I want to get the most for my Southampton home (and it is indeed the job of the estate agent to get the best price for their client). If I believe it is worth testing the market at a slightly higher asking price, I will suggest that, yet will always explain my thinking and if we have over cooked the asking price, we can swiftly realign it after a couple of weeks.  

 

Yet because many estate agents are disposed to suggest over inflated asking prices to the house seller just to secure their business (i.e. overvaluing) but not manage the property for months and months ... this in turn causes Southampton properties to sit on the market and not sell.

 

In the best property market for 20 years, 20% of properties for sale in Southampton have been on the market for 6 months or more. Overvaluing is widespread among Southampton estate agents.

 

Most Southampton homeowners will ask three or four estate agents to value their Southampton home and take the middle figure when they want to sell. Yet, if all (or most) of your Southampton estate agents are over optimistic and they all give you a ‘gilded lily’ price to secure your instruction to sell your home (i.e. overvalue), then that middle figure will be too much.  Most Southampton estate agents know they don’t win the business (i.e. secure the listing) if they tell the homeowner what they don’t want to hear.

 

So, what is the risk of overvaluing?

 

There is a potential massive cost to putting your Southampton home on the market at too high an asking price. Your estate agent will tell you that your Southampton home is worth a certain figure and then lock you in to a 16-week sole agency agreement (sometimes longer) which you cannot get out of early. If you are getting around two or three viewings a week, and the pictures and marketing material are half decent, then your pricing is about right, meaning in this market you should be sold (subject to contract) within a month to six weeks.

Yet, if your Southampton home has an over optimistic asking price (i.e. it is overpriced), you might only have a handful of viewings in a month and no offers. As the weeks and months go by, your overpriced Southampton home makes similar homes to yours (i.e. your competition) look really good value for money. That’s when you will get the price reduction call from the agent.

 

How many times have you seen a property that has been on the market a while and you have wondered what’s wrong with that? Also, to add insult to injury, the portals tell you how long a property has been on the market, adding weight to that argument. 

 

The longer your property stays on the market, the desirability

of your Southampton home drops.

 

You will end up selling your Southampton home but only after a handful of price reductions, yet at what cost? Firstly, in those lost months, you would have missed out on many properties that you fell in love with, yet couldn’t buy because your home was languishing on the market with no interest (this is backed up by consumer champion Which, who said that if you have to reduce your asking price by 5% or more, it adds an extra 64 days to the sales process).

 

Secondly, you will end up selling your Southampton property for less than if you had placed the property on the market at a realistic asking price from day one (again backed up by Which). This is because buyers think there is something wrong with it, so as the homeowner gets fed up, they accept a lower offer to get their property sold.

 

Finally, because you take less for your property, your choice of the next property to buy will also be curtailed, meaning your dream home move might be more of a nightmare?

 

The best advice I can give you is to search the portals, make sure you look at properties that are also sold stc (which can normally be found by clicking on the filter section of the search on the portal). Then ask a couple of straight-talking trusted friends to do the same and compare your property to the competition that is both on the market and sold (stc).

 

Compare their locations, number and size of the rooms and size of plot and ask them where they see your property against those. Carry out the same exercise yourself (of course you will be slightly biased) and take a bellwether from all those figures. Then ask a number of Southampton agents to value your property and if you feel any are being overly optimistic challenge how they get to their figure and get them to qualify their belief in that figure – is their valuation realistically achievable in the market at the time? As we all know markets change and property prices go up and down and ultimately a property is only worth what a buyer will pay for it – this all requires careful consideration.

 

I can assure you most of the estate agents in Southampton are decent people, who want to do the best for you. All I ask is you do your homework and look at the sale of your Southampton property through the eyes of a cold-blooded buyer.

 

If you would like a chat about selling your Southampton home do give me a call.

CLICK HERE TO FIND OUT HOW MUCH YOUR SOUTHAMPTON PROPERTY IS WORTH

 

If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.

 

If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.

 

 

Don't forget to visit the links below to view back dated deals and Southampton Property News.

 

Blog, http://southamptonproperty.blogspot.co.uk/

 

Facebook, https://www.facebook.com/belvoirsouthampton/

 

Twitter, https://twitter.com/sotonbelvoir

 

LinkedIn, https://www.linkedin.com/in/brianlinehan

 

Website, https://www.belvoir.co.uk/offices/southampton

 

 

Lessons for landlords in Southampton from the wealthiest person in the world

A landlords’ advice article published recently said property investors need to think more like the Amazon founder Jeff Bezos.

The billionaire businessman is renowned for his long-term thinking. He thinks decades ahead, and let’s face it, he’s not doing too bad, is he?

The article said landlords should retain good tenants at a reasonable rate rather than aim to get the highest rents in the short term. It’s wise advice and something we believe in.

When a landlord adopts a short-term view of their property investment, it can often lead to lasting headaches. The advice you are given can often depend on your letting agent’s philosophy.

Some agents will say things like: ‘The rental market in Southampton is on fire now. We can get you even higher rents and squeeze out every penny from tenants.’

That’s not the way we approach things. Why? Because if you hike up a person’s rent whenever possible, it may mean more money in the short run but can be more costly in the long run.

Our advice to clients and indeed anyone thinking of investing in rental property is this:

Getting higher monthly rents isn’t as crucial in the mid to long term as finding and looking after good quality tenants paying a fair rate.

Here are some of the plus points a good longer term tenant brings:

Fewer void periods.

Fewer unnecessary repair or maintenance call outs mean a reduction in the property’s running expenses.

Good tenants appreciate they are being treated fairly and respectfully, and they look after their home.

Never to be underestimated is that having a good tenant in your property reduces your stress levels.

Going for the highest monthly rent charge as a property rental strategy can often be a mistake. It is more about maximising the overall return for our landlords.

At Belvoir Southampton, we take the time to find, vet and keep good quality tenants for our landlords. This is the best way forward in the long term.

So, take a leaf out of the wealthiest person in the World’s book (Bezos was ranked #1 by Forbes magazine last month) and think further ahead when it comes to achieving rental property success.

 

*Copyright Belvoir Southampton

Are You Ready for Life after Lockdown in Southampton?

In this two-minute read, we look at how to get ready for the changes that lie ahead as restrictions continue to ease.

With the end to our arduous Covid hibernation in sight, it’s time to prepare for life in the “new normal”.

While the prospect of restrictions easing is exciting – we can’t wait to eat at Jehangir’s Restaurant and drink at The Dancing Man Pub – it will also take a little getting used to.

That’s because many of us have grown used to lockdown living; we now work from home, live in tracksuit bottoms, and tell ourselves that cutting our own hair is a good idea.

But after a year of adapting to a host of unfortunate circumstances, it’s time to adapt again – only for happier reasons. Here are a few ways to prepare for life after lockdown.

Spring clean your wardrobe

If you’ve spent the past year in leggings, jeggings, slankets, and onesies – anything with a forgiving waistline basically – now is the time to dig out your “good” clothes. Try them on and decide if you still like them and if they still fit you. Donate unwanted items to a charity shop and make any necessary purchases. You don’t have to ditch all your comfy stuff, but you will need a few pieces that will look smart in a work meeting or at a catch-up with friends.

Revamp your fitness routine

Many people kicked off the first lockdown in 2020 with a flurry of physical activity that tapered off as the pandemic dragged on and on. They’re now – understandably as it’s been a tough year – carrying a few extra pounds. If you want to shift a little weight, take your time. Start slowly and progress steadily to avoid injury. Also, focus on activities that you enjoy – they will be good for your mental health, and you’re more likely to continue with them long term.

Acknowledge stress

It may seem that with lockdown lifting, all our troubles will be over. But it’s important to be realistic with our expectations. Some of the activities that we’ve avoided over the past year such as long commutes, mingling at parties, making small talk in the work canteen – may make a return and prove stressful. If things you once took for granted now feel challenging, don’t give yourself a hard time. Talk to someone about it (lots of people will be in the same boat), and remember that we’re still navigating our way through a deadly pandemic. Be kind to other people – and yourself.

From all of us here at Belvoir, take care and stay cheerful.

COPYRIGHT BELVOIR SOUTHAMPTON 2021

Southampton Property Market: 2011-2021

A look back at the Southampton housing market over the last decade

With all of us completing the Census, a couple of weeks ago, it made me realise profoundly that mine and my family’s life, which from our own point of view seems unique and delightful, makes us all into a series of statistics for the Census gatherers to pore over. To digest and regurgitate facts, figures and trends for those who are interested in the ever- changing social circumstances of these islands.

 

However, the information from the Census is vital to improving our lives - Governments can plan the future with the information it provides and we in turn can wonder about the lives of our past generations with the information provided therein historically if we so wish. 

 

Whilst the information from this Census won’t be published until March 2023, let us have a look at what has been happening in the Southampton property market since the last time we completed the Census, in 2011.

 

Just to remind you, 2011 saw the wedding of Prince William and Kate Middleton, Mr Cameron was the PM, there was the last flight of the Space Shuttle and Game of Thrones premiered.

 Whilst in the Southampton property market …

 

·       The average price paid for a Southampton detached home in the last 12 months has been £446,000. The average value of a Southampton detached home has risen by 36.5% in the last 10 years or £125,000

 

·         The average price paid for a Southampton semi-detached home in the last 12 months has been £293,200. The average value of a Southampton semi-detached home has risen by 39.0% in the last 10 years or £95,100

 

·         The average price paid for a Southampton town house/terraced home in the last 12 months has been £238,900. The average value of a Southampton town house/terraced home has risen by 34.8% in the last 10 years or £76,200

 

·         The average price paid for a Southampton apartment/flat in the last 12 months has been £174,300. The average value of a Southampton apartment/flat has risen by 31.7% in the last 10 years or £55,500

 

Irrespective of any dip in Southampton house prices or transactions when the Stamp Duty Holiday ends in the autumn, this is a trend that looks set to continue, with no sign that supply of new homes is anywhere near to keeping pace with demand for households.

 

There have only been 6,385 new properties built in Southampton in the last 10 years, that’s just over 53 a month. That means the population in Southampton has risen by 2.62 people for every new home built over

that decade.

 

Nationally, the Country has only built just over 180k homes a year over the last decade, 120k less than the national target of 300k. In the meantime, the population has grown by more than 4 million.

 

When looking locally at the size of new build property in Southampton, the average property is just over 850 sq. ft., which is 20% smaller than a decade ago.

 

Rents in Southampton …

 

Whether you are a winner or loser in terms of rental values depends on whether you are a Southampton landlord or a Southampton tenant.

 

The average rent for a property in Southampton currently stands at £1,228 per month, whilst a decade ago, it was £998 per month

 

This means private rents have increased by £1.91 a month for the past ten years.  Interesting, when compared to the national average of 98p a month whilst in London, rents have grown by a massive £4.64 a month.

 

 

So what’s in store for the next 10 years of the Southampton Property Market…

 

Well the next ten years will also be just as fascinating. To try and predict would be a fool’s game.

 

For example, who would have believed what the Southampton property market has done in the last 12 months since the start of Lockdown 1.0. The number of transactions (i.e. people moving) in turn with UK house prices having risen so much in the last year ... all during a worldwide pandemic and at a time of such mayhem and havoc in the UK and world economy, is nothing short of remarkable … the question is – is it sustainable?

 

Read these articles in the coming months and years and I will share with you what is happening to the value of your Southampton property, be you a Southampton homeowner or Southampton landlord.

CLICK HERE TO FIND OUT HOW MUCH YOUR SOUTHAMPTON PROPERTY IS WORTH

 If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.

 

If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.

 

 

Don't forget to visit the links below to view back dated deals and Southampton Property News.

 

Blog, http://southamptonproperty.blogspot.co.uk/

 

Facebook, https://www.facebook.com/belvoirsouthampton/

 

Twitter, https://twitter.com/sotonbelvoir

 

LinkedIn, https://www.linkedin.com/in/brianlinehan

 

Website, https://www.belvoir.co.uk/offices/southampton

 

Southampton Property Market Improved by 28.7% Over Pre-pandemic Levels

Has there ever been a better time for Southampton home sellers?

 

The Southampton property market, for people looking to sell, is at its sturdiest for at least the last five years with home buyers jumping onto the Southampton property ladder with abandon.

Southampton house prices are anticipated to rise throughout 2021 after the Stamp Duty cut (and subsequent extension until the autumn) and the newly revealed 95% mortgages for Southampton first-time buyers (and Southampton homeowners with minimal equity).

In addition, the continued low interest rates and the demand for larger homes because of lockdown means the Southampton property market should remain bullish for a while. There is a surge in potential buyers putting themselves on mailing lists with Southampton estate agents, making the biggest disparity between supply and demand for Southampton property for many years.

Fears of a cliff edge for the Southampton housing market at the end of March have dispersed, somewhat due to the Stamp Duty tax deadline extensions, but also because of the elevated level of buyer demand caused by the three lockdowns which has continued to swell since the start of 2021, meaning that today …

 

66% of Southampton properties on the market are Sold (STC)

Interesting, when utilising data from theadvisory.co.uk website, the Southampton average for the last five years has only been 51%, meaning there has been an uplift of 28.7% in the proportion of Southampton properties sold (stc) compared to that five-year average.

  

Yet what can’t be forgotten is that 45% of Southampton house sellers are also house buyers, so whilst they do indeed achieve a higher price for their Southampton property, they also have to pay more for the Southampton property they want to buy.

So, how much will Southampton house prices rise by?

Like all things in life, it’s all about supply and demand. I have discussed the demand, yet what about the supply of properties for sale? Well…..

 

There are 5% more Southampton properties for sale today compared to 6 years ago

Nationally, in most UK towns and cities, the number of properties that are for sale today compared to same pre-Easter property markets of 2015 to 2019 are lower by around 10% to 20%, yet in Southampton the opposite is true. With the easing of lockdown started and the faster rollout of the vaccine, this has persuaded more Southampton homeowners (especially those older Southampton homeowners who have had their jabs) to start making the first steps towards moving home in 2021 and placing their property on the market for sale.

This will mean there will be more Southampton properties available for sale in the conventionally busier post Easter market in the coming weeks and months which should cause more equilibrium and help keep Southampton property prices in check.

These are interesting times for the Southampton property market. If you are a Southampton homeowner or Southampton landlord looking to buy or let your Southampton property in the coming weeks or months, don’t hesitate to drop me a line to discuss what all the points raised in article mean to you.

 CLICK HERE TO FIND OUT HOW MUCH YOUR SOUTHAMPTON PROPERTY IS WORTH

If you would like to pick my brains on the Southampton Property Market – Just drop me a line on social media or email me @ brian.linehan@belvoir.co.uk you can also call me on 023 8001 8222.

If you are looking for an agent that is well established, professional and communicative, then contact me to find out how we can get the best out of your investment property.

 

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