Making Sense of the Northampton Property Market's £284 per Square Foot Value

 

Northampton, a vibrant town with a diverse property market, offers countless opportunities for homeowners seeking their next home. However, navigating this landscape requires a strategic approach to avoid common pitfalls. If you're a current Northampton homeowner weighing up your options for a potential move, this guide will shed light on some key factors to consider.

 

The Diverse Landscape of Northampton Properties

Northampton boasts an array of properties varying in age, size, and style, which means there's something for everyone. Some homebuyers prefer newly built homes for convenience and low maintenance, while others opt for established homes. These older homes offer more space for your money and sometimes renovation potential.

However, this diversity makes it crucial to look beyond surface-level data to understand a property's value truly. Other distinctions that impact a property's value include location, layout, bedrooms, condition, and unique features.

A prime example is the disparity in price per square foot among properties across the town.

 

Currently, the average Northampton property is

on the market at £284 per square foot

 

Yet, this only tells half the story.

The problem with averages is they hide the outliers and exceptions. Outliers/exceptions are the statistics and numbers that go far outside the average value of a group of statistics, yet they are where the magic happens.

Therefore, I suggest we look at the 'central 80% range' instead of just the average. This is, in essence, the core 80% cut of the stats, thus excluding the top and bottom 10% of stats. Consequently, looking at the 'central 80% range’ for Northampton …

 

80% of properties currently for sale in Northampton are

between £208 per square foot to £375 per square foot

 

This broad range highlights the importance of not relying solely on square footage averages when valuing your next home.

Another example is bedrooms. Typically, a 4-bedroom home is expected to be valued higher than a 3-bedroom home, and this generally holds true. However, there is some overlap between their price ranges.

 

In Northampton, the average asking price of a 3-bedroom home is £272,000, compared to £407,000 for a 4-bedroom home

 

Everything is in order there, as would be expected.

Yet when examining the 'central 80% range' - the prices for 3-bedroom homes in Northampton fall between £200,000 and £350,000. Meanwhile, the 'central 80% range' for 4-bedroom homes spans from £295,000 to £575,000.

As you can see, there is quite an overlap!

 

Finding the Right Balance: Practicality vs. Emotional Connection

When considering your next Northampton property, it's important to strike a balance between practicality and the stuff you can't measure with a statistic - i.e., the emotional appeal.

On the practical side, you could create a list of essential features - such as desired neighbourhoods, reception rooms, layout, garden size, and local amenities - to help you prioritise properties that meet your needs. For instance, proximity to good primary schools will be vital if you plan to start a family or already have children. Similarly, desirable features like south-facing patios and gardens, modern kitchens, and open floor plans can significantly impact your enjoyment of the home.

On the practical side, evaluate the duration of your stay in the new property. Most homeowners of smaller to medium-sized Northampton homes move every five to six years, so considering the marketability of your home when it's time to sell is crucial. An area with convenient transport links, a vibrant local community, and proximity to shops or leisure facilities will appeal to future buyers.

However, your personal ‘emotional connection’ to a property should not be overlooked. The feeling you get when you walk through the door, the view from the kitchen, and the unique atmosphere of each home influence long-term satisfaction and value. The blend of rationality and emotional resonance will ultimately guide you toward a decision that reflects your aspirations.

Recognising Hidden Costs and Potential Returns

When moving into a new property, it's essential to factor in hidden costs like Stamp Duty, legal fees, surveys, and mortgage arrangement fees. You should also be mindful of the maintenance costs, renovation expenses, and unexpected repairs that can arise, especially with older properties.

Conversely, consider the potential for returns if you invest in upgrades or improvements. A well-thought-out renovation could significantly increase the value and desirability of your home, providing excellent returns if you decide to sell. However, assessing the cost-benefit ratio before embarking on a project is essential, as over-investing might not always yield a profitable return (again, I can advise on that).

 

Ready for Your Next Move?

In conclusion, finding your ideal Northampton property involves much more than crunching numbers. Your decision should reflect a careful blend of practicality and emotional resonance with the home, all while understanding market conditions.

If you are considering a move and would like expert advice on your property's value or the current Northampton property market, don't hesitate to reach out.

I'd be delighted to help you assess your options and guide you toward making an informed decision that aligns with your aspirations. Your dream property awaits, and I'm here to help you find it.

 

 

How Long Does It Take to Sell a Property in Northampton?

The latest data reveals that it takes an average of 38 days for estate agents in Northampton to find a buyer for properties in our town. This statistic, compiled by Denton House Research, encompasses all properties sold subject to contract over the past three months by every estate agent in Northampton.

This data highlights the current market dynamics and can help you better understand the timeframe involved in selling your property. As an experienced estate agent with Belvoir Northampton, I am committed to staying updated with the latest market trends to provide the best service to my clients.

If you're thinking about selling your home in the next few months, why not give us a call? We offer a free, no-obligation valuation of your property. Let’s discuss how we can make your property stand out in the Northampton market.

 

Property Market Update: Homes Sold 2024 vs 2023

 

In the bustling property market of Northampton, homeowners have every reason to be optimistic as 2024 continues to outperform 2023 in terms of property sales. Across the UK, every region has witnessed significant growth. London leads the charge with a remarkable 20.8% to the end of April increase in homes sold stc, followed closely by East Anglia at 19.6%, and the South East at 19.5%. The Midlands are not far behind, with the East Midlands reporting an 18.2% rise and the West Midlands at 18.0%.

In the North, the North West saw a 17.7% increase, Yorkshire & the Humber recorded a 17.3% rise, and the North East improved by 14.7%. The South West experienced a solid growth of 16.1%, while Wales showed a robust increase of 14.0%. Both Scotland and Northern Ireland matched with a 12.4% uptick in sales.

This consistent upsurge across all regions, including Northampton, highlights the vitality of the UK property market. As homes continue to sell, it is essential for sellers in Northampton to price their homes realistically to capitalise on the active market, as still only 1 in 2 homes that come on the UK property market end up selling. 

Therefore, if you're considering a move or need advice on property values, don't hesitate to contact me for a free valuation of your Northampton home. Now is the perfect time to gauge your property's market worth and make informed decisions for your future.

How much is your bungalow worth?

 

Bungalows continue to be a unique asset in the UK property market, offering the charm of single storey living. 

In 2023, they carved out a significant niche, with 81,823 out of the 915,705 properties sold in 2023 being bungalows. Despite their smaller size, the demand for these quaint single storey dwellings remains evident, reflected in their higher average pound per square foot value at £371, compared to £329 for the overall market.

Bungalows represent a fascinating contrast: while they boast a higher value per square foot, their average sale price in 2023 was £341,081, less than the overall property market's average of £353,462 in 2023.

The scarcity of bungalows only adds to their allure; with just 2 million across the nation, they are a rarity amidst the 28 million homes in the UK. Their popularity persists for many reasons, including accessibility and the ease of maintenance.

A regional breakdown shows considerable variations in prices paid for bungalows across the UK. London leads with an average price of £583,646, followed by the South East at £467,269. The South West offers the average bungalow for £394,694. East Anglia, with its picturesque landscapes, commands £371,379, while the West Midlands registers at £322,271 and the East Midlands at £285,806. 

The North West and Wales reflect more moderate prices at £277,334 and £273,001, respectively. Yorkshire & Humberside, Scotland, the North East and Northern Ireland offer relatively affordable options at £265,743, £243,644, £229,460, and £224,068 correspondingly.

For those seeking the convenience and charm of a bungalow in Northampton, as a local estate agent with an intimate understanding of the market, I extend a warm invitation to help you. 

Whether you're looking to sell your Northampton bungalow or find the perfect one to call home, do not hesitate to get in touch. Let's navigate this distinctive market together to find a bungalow that suits your lifestyle and needs.

 

Discovering Northampton: Part 4

This heat map of Northampton visually highlights the areas with homes built between World War I and World War II. The darker the red regions represent the areas of Northampton that have a higher concentration of homes from this period. These areas stand out against the grey regions, where no homes from that era exist.

The interwar period was marked by a challenging economic landscape. The Great Depression of the 1930s caused widespread unemployment and reduced economic activity, making home construction difficult. Additionally, funding for public housing was limited, and high-interest rates deterred private investment. Social unrest and political instability further dampened growth in the property market.

Despite these conditions, certain areas in Northampton experienced growth, reflecting the changing housing needs and the influence of early urban planning efforts. This graphic provides a fascinating insight into the town’s development and offers a window into a unique chapter of British housing history.

 

 

Is it a Northampton Buyers’ or Sellers’ Property Market?

 

Navigating the property market in Northampton? Understanding the current market dynamics is essential whether you're looking to buy a dream home or sell a cherished property. Recent data reveals a fascinating surge in property transactions across the UK, with Northampton included in all this bustling activity.

As of April 2024, property sales and listings have increased significantly, indicating a robust market. Yet, what does this mean for you? Is Northampton a buyers’ market, favouring those looking to purchase, or a sellers’ market, giving an edge to those wishing to sell?

This article delves into the latest figures and trends, offering crucial insights and strategic advice for prospective buyers and sellers in Northampton. Read on to discover the opportunities in this dynamic property landscape and how you can best navigate it to your advantage.

Up to Sunday, 21st April 2024, the number of UK homes that went under offer (sold STC) was 10.3% higher than during the same period in 2023.

(377,217 home sales agreed on YTD in 2024 compared to 341,271 YTD in 2023)

 

Even more interesting when we compare the average of 2017/18/19 year to date (YTD) sales agreed figure of 351,027.

Every UK region has seen an increase in the number of properties selling (subject to contract). Yet what is more interesting is that the different regions of the UK property market have shown a remarkable uniformity in growth across the country for the YTD in 2024, signalling robust health and widespread confidence.  

Leading the charge, Inner London showcased a stellar rise of 21.09%, closely followed by Outer London at 20.47%, reinforcing the enduring appeal of the capital. East Anglia and the South East were not far behind, registering impressive gains of 19.65% and 19.48%, respectively, underscoring the continuous attractiveness of the South East. The Midlands, both East and West, also enjoyed substantial growth at 18.20% and 18.02%, indicating a resilient market presence. Up North, the North West at 17.70% and Yorkshire & Humber at 17.27% demonstrated significant upward movement, whilst the South West advanced with a respectable 16.11% increase.

The North East, Wales, Scotland, and Ulster presented growth figures of 14.74%, 14.00%, 12.43%, and 12.38%, respectively, suggesting a balanced expansion across the entire UK. Although most pronounced in London and the South East, the growth spectrum exhibits a promising scenario for the UK property sector, with the narrow gap between the highest and lowest growth regions illustrating a cohesive national uptrend.

 

In addition to increased property sales, the supply of UK properties on the market in April 2024 was 11.8% higher than in April 2023.

(654,913 properties for sale in April 2024 versus 585,741 for sale in April 2023) 

This increase in the number of properties for sale is good news, as it gives buyers greater choice.

 

Even if you sell your property, there's no guarantee that it will go through to exchange of contracts and completion. Thankfully, 2024 sale fall-throughs are at 22.5% of gross sales YTD, which is much lower than the 7-year average of 24.3%.

 

Net sales (house sales agreed less sale fall throughs) paint an

even better picture, with a rise of 12.6% year on year.

(295,912 net sales YTD 21^st April 2024 vs 262,871 net sales YTD 21^st April 2023)

 

Prospective purchasers and vendors are witnessing a rise in confidence as mortgage rates, after climbing sharply last year, have begun to decline recently. Inflation stands at 3.8%, a steep fall from the 9.6% high of October 2022. Furthermore, average mortgage rates have settled, with many banks and building societies now offering decent rates. For example, at the time of writing, Nat West was offering a 5-year fixed rate of 4.37% for those with a 30% deposit, Virgin Money a 5-year fixed rate of 4.69% with a 10% deposit and the Leeds Building Society a 5.14% 5-years fixed for those with a 5% deposit.

Despite these positive signs, Northampton house price levels are expected to hold steady, with the market remaining buyer-friendly due to mortgage affordability issues.

The easing of mortgage costs (compared to the summer of 2023) has undoubtedly sparked renewed interest and dealings in the property market, particularly after a lull period in the second half of last year, when many considering a move put their plans on hold. This revitalisation is anticipated to boost the volume of homes sold, which had dipped to an 11-year low of just over one million in 2023.

Nevertheless, it's unlikely this momentum will cause a marked rise in house prices in 2024, with the market maintaining a delicate equilibrium, in contrast to 2021's full-on extreme sellers’ market.

 

Northampton homeowners planning to sell in 2024 may be buoyed by this uptick in market activity; however, they should temper their expectations as buyers remain keen on value, which could dampen the current pace of recovery in the property market. Caution is also advised due to the traditional hesitance seen in the property market during a general election year, with buyers and sellers often taking a more conservative approach as the election looms.

 

This is the time to be realistic with your pricing if you’re

going to put your Northampton home on the market.

 

So, what sort of market are we in?

The measurement of whether it's a buyers', balanced, or sellers' market is based on the proportion of properties marked as "Sold STC" and "Under Offer" compared with the total number of properties on the market. For example, if there are 43 properties sold STC and 100 properties available/for sale, then 43 as a percentage of 100 is 43%.

This isn't just a numbers game; it's a gauge of market sentiment:

 

·       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%+)

The weight of these brackets can’t be overstated. They directly impact everything from listing prices to negotiation leverage.

 

Current Northampton Property Market Snapshot

To calculate Northampton's property market's current status, let's incorporate our most recent findings for April 2024. The numbers and statistics have been taken from the website 'The Advisory', which has calculated the market state for many years. I am sharing them from the summer of 2018 to April 2024.

·       The Northampton postcode districts of NN1 to NN7 combined showed an extreme sellers’ market at 76% in the summer of 2021, which eased off towards the end of 2022.

·       Throughout 2023, the Northampton property market was in the late 40% to early 50% ranges (a sellers’ market into a hot sellers’ market).

·       As expected for the time of year, in February 2024, this had reduced down to 48%. Since then it has increased slightly to 51%.

The Consequences and Thoughts for Northampton's Property Market

This new data prompts me to take stock and ponder.

For Northampton sellers: We are transitioning into a market where sellers must be more strategic, flexible, and patient. It would help if you braced yourself for your home to be on the market for longer with an extended marketing period. Realistic pricing is even more vital than ever. Setting at the right price is crucial for attracting suitable buyers.

Why? Because your chances of selling your Northampton home have dropped in the last few years.

 

In the spring of 2022, 65.65% of Northampton homes that were on the market sold and completed. Since 1^st January 2024, that figure has dropped to 49.58%.

 

Your marketing strategy is just as important. Employing tools such virtual tours or targeted social media campaigns could be particularly beneficial in this more ‘normal’ market of 2024.

For Northampton buyers: Expect intense competition if you're interested in highly sought-after types of properties. Securing mortgage pre-approval can put you ahead of other prospective buyers. Consider expanding your search area to discover potential deals that others may overlook. Conversely, in less competitive markets, Northampton buyers have more leverage to negotiate, from the offer price to inclusions like carpets, fixtures, and fittings. You will also have the luxury of choice and time with other homes.

 

Remember, four out of five sellers are also buyers, so what you may lose on the sale might be compensated for on the purchase.

 

External influences, such as global economic trends, inflation and interest rate repercussions, could all cast shadows on the Northampton property market. The election will undoubtedly affect the Northampton property market, as everything will go on ice in the three or four weeks before the election itself.

 

Final thoughts: As we progress into the fifth month of 2024, the Northampton property market presents challenges and opportunities for buyers and sellers. Understanding these market subtleties is crucial for anyone considering a move, from existing homeowners to seasoned buy-to-let investors, first-time buyers or those looking to relocate to Northampton.

Stay flexible, stay informed and remember that your home-moving experience is as much about the journey as the destination.

What are your thoughts on Northampton's developing property market?

Do you anticipate any other shifts or trends in the Northampton property market?

What are your local insights and experiences?

 

How long do British people stay in their home?

Let's delve into the fascinating world of British housing trends and statistics. Have you ever pondered over the average time British people stay in their homes? This graphic reveals the answer!

As expected, those in private rented accommodation stop for the least time, at 4.3 years.

Those buying a home with a mortgage tend to stay an average of 9.2 years. Those in social rented homes (council housing or housing association properties) stay a little longer, at an average of 12.2 years. Finally, those homeowners without a mortgage stay the longest, at 23.2 years!

Are there any surprises in this? How does your own living situation compare? How long have you lived in your Northampton home?