Southampton Property Market Update Summer 2019

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The foundations of the Southampton Property Market over the summer have continued to be principally sound; yet the existing political macroclimate means that the critical element of consumer confidence has been reduced and that is triggering some potential Southampton property buyers and Southampton house sellers to falter slightly and hang fire making any firm decisions on property.

With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability (even those with low deposits - there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 main stream lenders that would offer 100% no deposit mortgages), Southampton buyers have a lot going in their favour, aside from the perceived political uncertainty. 

Interestingly, Rightmove have stated there are more properties for sale today in the Country, than at any time since 2016, and Southampton follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Southampton and the surrounding locality and it makes very interesting reading.

Overall, property values in the Southampton area are 1% lower

than a year ago as the average property value in Southampton now stands at £295,200.

When I looked at the types of Southampton properties, a slightly different picture appeared..

·         Southampton Detached homes dropped by 0.6%

·         Southampton Semi-detached homes rose by 0.2%

·         Southampton Terraced/Town-House dropped by 0.5%

·         Southampton Flats/Apartments dropped by 2.3%

and the current values for these types of properties are ..

·         Southampton Detached £443,400

·         Southampton Semi-Detached £280,300

·         Southampton Terraced/Town-House £239,800

·         Southampton Flats/Apartments £178,100

Yet, Southampton Property Market Blog readers will know I always like to measure the health of the Southampton property market not only by house prices but transaction levels as well, so ..

5,425 properties were sold in the last year in Southampton,

 lower than the 10-year average of 6,103 properties per annum

Considering the uncertainty the Country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Southampton property market.

Now looking forward towards the end of the year .. how will Southampton house values change under the new Prime Minister?

Southampton buy-to-let landlords and Southampton first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Southampton homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.

That means those selling their homes in Southampton need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase. 

BoJo, Brexit … to be honest are all short-term distractions from the long-term issues of the UK and Southampton property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase.

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 – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton 

Is Southampton Too Densely Populated?

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Has England’s green and pleasant land all of a sudden become England’s green and overcrowded land?

With the nation’s ever-increasing population and the double whammy that people are now living longer, this means as each year goes by, there is an ever-growing strain on public services and in particular my favourite topic - housing. It’s no wonder some people are saying things are at crisis point when it comes to infrastructure (like roads, schooling etc) and in particular housing.  I hear it all the time, people complaining that Southampton looks like a building site and, we are packing people in like sardines into our Southampton homes. Yet I wanted to find out exactly what the truth was.

Starting with the UK as a whole, there 698 people per square mile whilst in England, there are 1,103 people per square and finally in Greater London 14,587 people per square mile  … these all sound quite awful numbers, until you drill down and realise a square mile is an awfully big area - there are only 93,600 square miles in the whole of the UK and that includes the wilderness areas of Scotland!

Let’s look at more realistic areas of land ... and I want to look at my favourite - the acre. To those born after the mid 1970’s, an acre is roughly half the size of a football pitch or a square roughly 63 metres by 63 metres and there are just less than 2.5 acres in a hectare.

The population of Southampton (SO18) is 36,990 and the total area of 1,976 acres, meaning 18.72 people live per acre in Southampton (SO18)

So, how does that compare to neighbouring areas and towns...

As you can see, only just under 19 people live per acre in Southampton, interesting when compared to both Greater London, which has density of 23.26 people per acre and London’s most crowded suburb, Pimlico at 92.32 people per acre. Yet even Pimlico is nothing to the Collblanc district in Barcelona, which has 214.8 people living it per acre.

So, is Southampton over populated? Yes, it seems that way at school time or rush hour when sitting in traffic that Southampton is over populated – yet the stats show - we aren’t.

Evidently, we are never going to have an even spread of population as can be seen from the figures in the table, and the remote nature of some parts of the Country would not be able to withstand high densities of new people without enormous infrastructure investment.

Yet could we accommodate a much larger population in the UK (and Southampton) although there would be trade-offs? Look back at the 17^th and 18^th century and certain sectors of society were warning about population growth. The population of the UK in 1801 was 10.5 million and even with the growth of the population since then, only 1.2% of the UK is currently built on for housing purposes.

The question, it seems to me, is not can we manage but how

would a larger Southampton population change our way of life,

both for better and possibly worse?

The planners have a responsibility to ensure Southampton provides its fair share of new homes to accommodate this population growth in the coming years. The local authority has a responsibility towards adequate provision of the infrastructure of roads, hospitals and schools etc., to match the growth in housing. This is not a political topic and I hope once the ‘B’ word is finally sorted we can get on with addressing the shortage of affordable new homes for future generations.

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 – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton 

Southampton Homeowners can now build larger extensions without planning permission.

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The need for more homes has always been one of the biggest issues with regard to the Country’s housing crisis.  One of the main reasons for families wanting to move home is the need for more accommodation as their families grow and so in 2013 and 2015, the planning permission rules were relaxed to try an alleviate this issue.

Initially in 2013, Nick Clegg, as Deputy Prime Mister, brought in temporary planning rules to allow larger single storey rear extensions without the requirement of a full planning application.  The temporary rules allowed terraced and semi-detached homes to be extended by just over 19ft, whilst detached houses were able to add even bigger extensions of up to 24ft.  Since those rules were relaxed six years ago, 109,320 people have taken advantage of the temporary rules (aka “permitted development size guidelines”).

Homeowners wanting to extend within these permitted development guidelines, must still inform the local authority of the extension beforehand, and local authority officials still need to then notify the neighbours.  If the neighbours object, the local authority could still stop the extension being built, but only if it is likely to damage the character or enjoyment of the neighbourhood.  The planning process exists for a reason and whilst these relaxed planning rules are popular with property owners, it does mean local authorities have little chance to deliberate the impact of these extensions on their locality.  However, 22,779 permitted developments had been refused in the same time frame meaning, 17.2% of permitted development planning applications have been refused since 2013.

Now these temporary rules have been made permanent recently as the Government believe these measures will help households extend their properties without fighting through the time-consuming red tape of obtaining planning permission.  The government believes this is part of a package of planning reforms to build more households, build them better, quicker and make the housing market work, meaning families can grow without being forced to sell and move… or does it?

The average size of a property

in Southampton is 775 sq.ft

.. internally (888 sq.ft  externally), whilst to the national average 929 sq.ft internally (1,081 sq.ft externally).  Interesting when compared to the average size of a new homes built nationally which is 12.1% lower at 818 sq.ft internally (927 sq.ft externally).

These relaxed rules are only for single-storey extensions though, when most growing families don’t need an extra downstairs reception room, they need an additional upstairs bedroom.  This means if families do want an extra bedroom upstairs, they will still have to go through the rigmarole of submitting a full planning permission.  Although, many Southampton people have used these rules in the last 6 years to build a decent size granny-annex – there are other options less explored out there.

There was a second (less advertised) temporary change the Government made to planning rules in 2015, that has also been made permanent recently, many may have missed it, yet it has a bigger potential impact on the housing market.  The new rules make permanent the removal of planning rules to allow office blocks and shops to be converted into residential homes without a full planning application being made.  Since 2013, 11,090 office blocks and 1,750 shops have been converted into residential households.  This doesn’t sound a lot, but in 2017 alone, converted shops and office blocks provided 37,000 new households alone in the Country (or 17% of the new household created in 2017).

Over the next decade, more and more office blocks and shops will be converted into residential properties … and this will slowly change the dynamic of the housing market and the high street … and I’m not sure whether that will be for the good or bad ... only time will tell?

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 – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton 

Which Street in Southampton has seen the most homeowners moving in the last 3 years?

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Lots of people say moving home is one of the top ten most stressful events in your life. Fortunately, there is a way to mitigate your stress. In a nutshell, start as early as you can, plan ahead and do everything you can to make it easy on yourself, your family and even the family pet. As an agent in Southampton, my team and myself have been helping homeowners, landlords, buyers and tenants move, sell and let their Southampton homes for many years. So I thought I would share some top tips for making your move as stress free as possible – then find out which streets in Southampton have moved the most in the last 3 years.

The first tip is to plan ahead and write a list; because whilst it is taking between 15 and 20 weeks at the moment from finding a buyer to moving, those few weeks will fly by in no time as day to day life carries on. Next, get yourself a decent home removal company as they are worth their weight in gold on moving day – and if you need to know a good one in Southampton - drop me a line and I will let you know who my clients are raving about.

Next, a cluttered Southampton home doesn’t sell or let well, so maybe consider decluttering before you market the property. It will sell/let better and when it comes to the move – the job will be so much easier. Know where you plan to put all your important documents (like Passports and Bank PIN etc). Tell your utility providers and it is a good idea to create electronic copies of significant documents by scanning and saving them onto a USB stick and don’t forget to get your mail redirected.

On the day of moving home stress levels will be high and I know you will want to get everything packed away and have the tea on by 5.30pm! Those who have moved many times know that isn’t the case. Be realistic, as it’s doubtful you are going to unpack all your boxes in your new home by the end of the first day.

Make sure to keep your ‘Moving Day Survival Equipment’ close by, change of clothes, wash equipment, cold bottles of water, biscuits, kettle, tea/coffee/milk, crisps (even G&T??) to keep your spirits, morale and energy up – you will be fine.. but it will take a few days to completely unpack and get your new Southampton home the way you would like it to be. As long as you have your bed set up and made by the end of moving day - you can have the rest of the weekend to get ship shape. 

So, which street or road in Southampton (SO14 to be more precise) has put themselves through one of the most stressful moments in their life over the last 3 years? Which street has seen the most home moves and experienced the trials of moving home.

Maritime Walk comes in at the top spot, with 80 home movers in the last 36 months with a total property value of £26,591,000 sold, interestingly there are 118 properties on the road … so have a look at the top 20 and see if your street is in the Top 20!

… but before you go, if you do need any help or guidance about moving home or advice about the current state of the Southampton property market, then feel free to drop me a line or read the other articles in my blog on the Southampton Property market.

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 – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton  

The Affordability of Buying Property in Southampton

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Looking back at the 75^th Anniversary of the D-Day landing a few months ago, it reminded me of the huge changes that have happened to Southampton and more specifically the Southampton property market since WW2. Back in 1946, the average wage in Southampton was just over £5 a week and to buy an average car would cost you just under £600, yet this is a property blog, so...

The average value of a Southampton property in 1946 was £1,217

In fact, in those 75 years, the average Southampton house had doubled in price by 1961, then again in 1971, 1975, 1980, 1988, 2000 and 2006. Now a lot of those increases (especially in the 1970’s) were caused by hyperinflation, yet since the start of the 21^st Century inflation has been kept low and since the Credit Crunch (2008/9), whilst property values have been rising, they haven’t been at the rates experienced in the latter half of the 20^th Century.

Now what a property sells for is irrelevant, its whether someone can afford it.

Increases in Southampton property values have produced huge increases in equity for many Southampton homeowners and Southampton buy to let landlords, yet on the other side of the coin also making housing unaffordable for other people. The best measure of the affordability of housing is the ratio of Southampton property values to Southampton average earnings (i.e. salary/wages). The ratio works on the basis the higher the ratio, the less affordable properties are.

In 1997, the average value of a Southampton property was 3 times higher than the average annual wage in Southampton, in 2007 it peaked at 6.4, yet two years later it had dropped to 5.4 and since then has slowly risen to 7.7 times higher!

It can be seen that even though property in Southampton became more affordable after the 2007/8 property crash (i.e. the ratio dropped), in subsequent years, with house values rising but earnings/salaries not keeping up, the ratio started to rise. This has meant there has been a decline in affordability of property in Southampton over the last five years - so for those on particularly low incomes or with little capital, it unfortunately means that buying a Southampton home will never become an option.

Therefore, the demand for private rented properties in Southampton will continue to grow as many young Southampton people are deciding to rent instead of buy their own house (knowing when their parents pass away, the equity built up in their parents property will be passed down - and then they can buy in their 50’s and 60’s - just like it happens in Germany).

Yet, that is many decades away and with fewer Southampton people wanting or able to save up the 5% deposit required by mortgage lenders, more and more people are looking to rent. Tie this in with the subtle shift in attitudes towards renting since the Millennium and less people jumping the on the bottom rung of the property ladder, this has driven rents and demand up in Southampton over the last few years. Yet (and it’s an important proviso) the type, location and demands of Southampton tenants has changed over that same time frame meaning you can’t just make money from buy to let as easily as falling off a log like you did in the early 2000’s.

If you would like to pick my brains on the Southampton Property Market – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton  

The Southampton Monopoly Board

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Board games seem a thing of the past for youngsters nowadays with their consoles and mobile phones yet a family favourite in our household that will bring young and old together is Monopoly.

Mayfair is the square everyone wants to buy and whilst it is the most expensive to buy – it offers the greatest returns. Mayfair was the must have London address when the Monopoly board game was made in 1935 when, at the time, it was the most expensive street to buy houses at £400 each. A member of my family asked me what a property today would be worth in Mayfair and how much it would cost to buy them all. Readers will know I like a challenge. My research shows that a typical house in Mayfair today costs on average £2.8m - whilst the total value of all the property in the Mayfair area currently stands at £11.8bn.

The fun part of Monopoly was to build more houses and ultimately a hotel to extract the maximum rent from the other players who landed on the square. That made me think, instead of looking at the average value of a property on the street, what if we looked at the total value of property on the whole street. So, I carried out some research on all the 216 streets in SO14 and calculated the top 20 streets in terms of their total value of all properties on the street..  and just for fun, colour coded them as if they were on a Monopoly board  …

Mayfair and Park Lane are represented by Channel Way and Ocean Way .. no surprises there, yet there are some surprises in the mix including Golden Grove and St Marys Road. They are rightly in the list because of the sheer size of those streets; because whilst the value of those homes are much lower than the posher streets, the total value of the whole street means they make the top 20 list.

Now of course whilst drawing a comparison between a 1935 board game and the actual total house values on those Southampton streets and roads provides a light hearted point of view of the Southampton property market, it does present a credible picture of Southampton’s most popular streets. Next time I will get back to writing an article with a little more seriousness and deeper issues on the Southampton housing market … but this week, I hope you enjoyed my little bit of fun!

If you would like to pick my brains on the Southampton Property Market – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton  

Only 40.4% of Southampton Households are Eco-friendly

Improving the energy efficiency of Britain’s 27.2 million homes, which are responsible for more than a quarter of the country’s CO2 and other greenhouse gas emissions, is seen as key to tackling the issues of climate change, fuel poverty and our country’s energy security. This is particularly important as in June the Government announced they were going to make the country carbon neutral by 2050, meaning Britain’s homes need some enormous retro-fitting to meet these ambitious climate targets.

Researchers at Nottingham Trent University said it would cost on average £17,000 per property to retrofit an average UK home to make it carbon neutral with renewable energy and insulation (if done en masse and not piece meal). That would cost the Country £462.4bn (interesting when the NHS costs £154bn per year). Now of course 22.7m homes are privately owned so that would be the responsibility of the owners, but if we look at publicly owned council housing, that would cost the Government in excess of £76.5bn - HS2 is ‘only’ £56bn!

The benefits of making homes carbon neutral go further than saving the planet, as occupants would have much lower gas and electric bills (which total £31.824bn per year), warmer households and a much-lower strain on the NHS, which currently spends about £848m a year treating conditions that arise from cold housing. Also, local authorities would have to spend a lot less than the £5.2bn a year for ongoing property maintenance by the installation of extra insulation and renewable energy such as ground source heating, wind or solar panels.

To improve efficiency ratings, last year the Government banned landlords from renting property with an energy performance rating of F and G (the lowest ratings), yet I don’t think there is an appetite to force private homeowners to do this work (although you never know in the future??). Homeowners would be unenthusiastic to take on the bother and cost of such building works, yet the Government could offer incentives and grants, which along with the funds saved on their energy bills could make the plan more appealing?

So, what about eco credentials of the properties of Southampton homeowners and landlords?

Every home that has been built, rented out or put on to the market in Southampton since 2007 has had to have an Energy Performance Certificate (E.P.C), giving it a rating between A and G (rather like those stickers you see on fridges and washing machines). A is highest rating (i.e. most efficient and greener) and G is the worst energy performance rating. So, looking at Southampton first, then comparing us to the rest of the UK, this is the result...

  

  

So, 40.4% of Southampton homes are in that eco-friendly A to C energy performance banding ratings, which is proportionally 8.84% higher than the national average.

So, what next? Well the Government will endeavour to make the green revolution as painless as possible with technology developments like LED light bulbs, for example, saving greenhouse gases without people noticing. In the future we might have hydrogen central heating instead of mains gas, all have solar panels for electricity, all triple glazed windows and even ground sourced heating ... sounds pie-in-the-sky? Well who would have thought some of the most wanted cars would be electric and hybrid 10 years ago, built by the likes of Tesla?

There is no doubt that the energy efficiency of a property will rise in the coming years as the cost of fuel and people’s opinion on going green changes. You don’t need to spend £17,000 to find out what you can do to make your property greener. Look at your E.P.C and it will tell you what small changes you can make to improve your Southampton home’s energy efficiency rating and ultimately save yourself money.

If you want to find your E.P.C rating of your Southampton home, go to www.epcregsiter.com

If you would like to pick my brains on the Southampton Property Market – pop in for a coffee or drop me a line on social media or email. 

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@belvoir.co.uk or call on 023 8001 8222.

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/letting-agents-southampton