Why Northampton’s Shrinking Households Could Shape the Future of its Property Market

 

Smaller household sizes are one of the reasons the Northampton (and the UK) property market and house prices will continue to hold up well in the medium to long term. British households for the last 100 years have been getting smaller, and this trend will drive demand for property and help give stability and growth to house prices.

Historically, the numbers are quite telling.

Looking at the household stats going back a century, the average number of people in a British home in 1921 was 4.3, fifty years later (1971) it has dropped to 3.2 people per household. At the last Census (2021), it had dropped to today’s figure of 2.36 people per household. 

Doesn’t sound a lot, but if the population remained at the same level for the next 50 years and we had the same percentage drop in household size, the UK would need to build an additional 11.5 million properties (or 230,697 per year) just to keep up with the smaller households. When you consider the country is only building 210,230 properties a year and that must satisfy not only the changing household numbers, but also people living longer and the c. 180,000 per year net migration - we simply aren’t building enough homes.

The table shows the average household size in the United Kingdom in 2023, by region:

 

• United Kingdom: 2.36
• London: 2.57
• Northern Ireland: 2.57
• South East: 2.43
• East Midlands: 2.41
• West Midlands: 2.38
• East: 2.37
• South West: 2.36
• Yorkshire and the Humber: 2.31
• Wales: 2.27
• North West: 2.27
• North East: 2.17
• Scotland: 2.15

And closer to home,

The average household size in West Northamptonshire is 2.47 people

Next, let us drill down even deeper into the statistics and see if the tenure changes anything.

Most homeowners who own their property outright - an impressive 82% - live in households of just one or two people. This trend is largely explained by older residents, often retirees, whose children have moved out, or elderly individuals living alone.

Interestingly, those living alone are more likely to occupy council housing, with 41% of single-occupant households falling into this category. On the other hand, the largest households - those with four or more people - are typically homeowners with a mortgage. This makes sense, as larger families often require financial support to purchase a home.

What truly caught my attention, however, was the even distribution of private rented households across all household sizes. Unlike other housing sectors, the private rental market closely mirrors the national average for household sizes, despite only accounting for about one-sixth of the population. It’s a fascinating balance in an otherwise segmented housing landscape.

Therefore, I will analyse the local stats:

 

There are 83,592 private renters in West Northamptonshire that occupy 33,227 private rented homes, meaning there are an average of 2.52 renters per property

 

But it gets even more interesting when we dig even deeper on just private rental properties in West Northamptonshire, as it is the rental market in Northampton that really fascinates me. When I analysed those West Northamptonshire private rental household composition figures:

·       27.7% of private rental properties in West Northamptonshire are 1 person households

·       30.4% of private rental properties in West Northamptonshire are 2 person households

·       18.5% of private rental properties in West Northamptonshire are 3 person households

·       23.4% of private rental properties in West Northamptonshire are 4 or more person households

 

What This Means for Northampton’s Property Market

Northampton’s shrinking household sizes paint an optimistic picture for the property market’s long-term stability and growth. Smaller households mean an increasing demand for more homes overall, even if the population remains steady. For homeowners, this demographic trend supports the likelihood of long-term value growth for their properties. With fewer people per household, the demand for homes is set to continue rising, providing peace of mind that property values will hold firm in the medium to long term. 

For potential buyers, this trend also underscores the resilience of the property market. Smaller households are not a temporary phenomenon - they reflect a century-long shift that’s likely to persist. Whether you’re purchasing a home to live in or as a long-term investment, the data suggests Northampton’s property market offers stability and room for growth, especially given its alignment with national trends.

However, it’s within the private rented sector where these demographic shifts create the most opportunity. Private rental properties are uniquely positioned to benefit from the growing number of smaller households. In West Northamptonshire, just over half of the private rental properties house just one or two people, making smaller properties an increasingly attractive option for landlords. The data demonstrates that smaller households dominate the rental market, and this trend will only intensify over time.

For Northampton landlords, this means one thing: focusing on smaller Northampton properties could provide a competitive buy-to-let edge. Not only is there a rising demand for one- and two-bedroom homes, but these properties tend to offer better rental yields compared to larger family homes. With lower purchase prices relative to their rental income, smaller properties are a smart choice for investors looking to maximise yields and returns.

Additionally, the flexibility of smaller properties makes them an enduring asset in a landlord’s portfolio. From young professionals seeking their first rental home to older individuals downsizing, the demand for compact, affordable housing is broad and stable. As Northampton’s population continues to evolve, smaller properties will remain the cornerstone of the rental market, offering consistent occupancy rates and strong returns.

For landlords in Northampton, the message is clear: smaller households (including smaller bungalows) are the future, and smaller properties are the key to unlocking long-term success in the private rented sector.

If you are a landlord - whether you manage your properties yourself or work with another agent - and you'd like to discuss whether your portfolio aligns with the current trends in Northampton's rental market, feel free to give me a call. I would be happy to share my insights without any obligation or cost.

 

First-Time Buyer Mortgage Payments: A Regional Breakdown

 

Recent data from Nationwide highlights the percentage of a first-time buyer’s take-home pay required to cover mortgage payments across the UK. While these figures may seem high, it’s important to note that they are, between 20% to 40% lower than in the late 1980s, when interest rates were significantly higher. This offers some perspective, especially given the challenges faced by first-time buyers in today’s Northampton property market.

 

Here is a breakdown of the data by region, starting with the highest:

• London: 60.4%
• South East: 43.9%
• South West: 41.8%
• East Anglia: 35.7%
• West Midlands: 33.8%
• East Midlands: 33.2%
• Wales: 30.2%
• Northern Ireland: 29.9%
• North West: 28.8%
• Yorkshire & Humber: 26.5%
• North East: 23.0%
• Scotland: 22.4%

 

While affordability challenges persist, today’s first-time buyers are faring better than those in the late 1980s. However, these figures still highlight the financial commitment required to step onto the property ladder, especially in high demand regions like London and the South East.

 

Are you a first-time buyer in Northampton? How are finding things? Please share your thoughts in the comments

 

UK Property Market Weekly Update - week ending Sunday 8th December 2024 (week 49)

 

· Listings (New properties coming on to the market)  - 21.2 UK listings this week (week 49), an expected drop of 2.6k from last week. 8.5% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 11.1% of Resi sales stock was reduced in the last month (November). 13% in October & 14% in September. Not brilliant as Stock levels are dropping in the usual run up to Christmas.  

· Total Gross Sales - 20.7k UK homes sold stc this week (Week 49), 9.6% lower than last week (as expected).  24% higher than the same standalone week (week 49) in 2023. Also, 8.9% higher than 2017/18/19 YTD levels & 15.3% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 14.9% of their Resi sales stock last month. 2024 average is 15.7% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - For the week 49, Sale Fall Thrus (as a % of Gross sales Agreed) 26.3%. The 7 year Long Term weekly Average is 24.3% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022.

· Net Sales - 15.2k this week (average for last 4 weeks 17.1k). 21% higher than the same week 49 in 2023, 52% higher than the same week 49 in 2022 & still 17.5% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,474,594 UK homes that left UK Estate Agents books since the 1st Jan 2024, 792,138 of them (53.7%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 682,456 (46.3%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 / 6 months in advance with an accuracy rating of 92%. The Initial November figure, in this important metric, is £344/sq.ft. In January ’24, it was £330/sqft, a rise of 4% in the last 10 months (and for comparison) in August ’24, it was  £334/sq.ft

· Resi Sales Stock on the Market (Monthly Stat) : 677k at end of November. For comparison, Nov ’23 - 664k, Nov ’22 - 527k,  Nov ’21 - 397k, Nov ’20 - 617k, Nov ’19 - 608k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 487k at end of November. For comparison, Nov ’23 - 391k, Nov ’22 - 436k,  Nov ’21 - 509k, Nov ’20 - 533k, Nov ’19 - 353k

 

If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

 

 

 

The Northampton Baby Boomer Housing Paradox: Wealth in Property, But Nowhere to Go

 

For decades, baby boomers in the UK have been the quiet beneficiaries of a housing market that has worked in their favour. Rising property prices and a growing housing shortage have pushed home values sky-high, giving this generation substantial equity in their homes. However, as more and more boomers enter retirement age, a new reality sets in, and the properties they need for this next stage of life are almost impossible to find.

 

From Winners to the Woes of Rising Northampton House Prices

The current housing market presents a paradox. Many Northampton baby boomers aged 59 to 78 have benefitted from decades of increasing property values.

 

The average Northampton home has risen from

£12,130 in 1974 to £318,684 today

 

Their homes have become financial assets, contributing significantly to their net worth. However, their housing needs are shifting as they approach the later stages of life.

Accessible, retirement-friendly Northampton properties, bungalows, ground-floor apartments, or homes with stair-free access are in critically short supply. According to some recent research, fewer than 10% of UK homes are suitable for those with limited mobility, and they only tend to come on the market after the current owners have been in it an average of 22 years. To give you an idea…

 

Only 530 bungalows have sold

in the Northampton area in 2024

 

This leaves many baby boomers in a bind: They're stuck in large, family-sized Northampton homes that no longer suit their needs. Rising living costs, with energy bills and insurance premiums eating into fixed incomes, make downsizing seem like an impossible task.

 

Is It ‘Ageing in Your Northampton Home’ or ‘Stuck in Your Northampton Home’?

Much like the experiences of their counterparts around the world, UK baby boomers are finding themselves “stuck in your home.” While some may choose to remain in their current homes due to emotional ties or the desire to age in familiar surroundings, many have no other option. Homes that meet their needs rarely come onto the market, and when they do, they’re often snapped up quickly, privately or through networks that most people don’t have access to.

The 2021 census shows that a significant proportion of baby boomers own larger homes with two or more spare bedrooms - homes that are increasingly unsuitable for their stage of life.

 

Of the 30,997 OAP households in the West Northamptonshire Council area, 21,518 of those households

have two or more spare bedrooms

 

Meanwhile, younger families who could fully utilise these properties need help to get onto the property ladder. This creates a bottleneck in the market that affects both ends of the spectrum.

 

Why Retirement Housing Isn’t Always Available

Several factors contribute to this shortage:

1. Development Trends: Over the past two decades, new-build developments have prioritised high-density housing, focusing on flats and town houses/semi-detached homes rather than bungalows or accessible properties. Developers often see little profit in creating single-storey homes as they take up so much land, even as demand for them grows.

2. Hidden Market Dynamics: Many of the most desirable retirement Northampton properties (bungalows and ground floor apartments) never make it to property portals (Rightmove, Zoopla or On The Market). Estate agents still sell them, yet only to people who have registered on their mailing list. The issue is that there has been an 80% to 90% reduction in people putting themselves on the mailing list in the last two decades because many home buyers assume every home goes onto the portals. This leaves many would-be Northampton buyers waiting endlessly for a home they may never see.

 

The Costs of Staying Put

Remaining in your Northampton home, which no longer suits your needs, can take a toll. Physically, features like stairs, large gardens, and narrow doorways can become daily challenges. Financially, larger family homes have higher costs - particularly with higher council tax bills, gas and electric bills, and home maintenance - which can be burdensome for those on fixed incomes.

And emotionally, the isolation of those living in a village or outlying suburb, many of whom are without access to amenities such as doctors' surgeries or public transport, can weigh heavily.

There’s also a broader societal cost. Without a steady flow of the older generation downsizing, those family homes remain occupied by empty nesters, while the younger generations, looking for space to grow, are unable to find larger homes for their families to grow into.

 

A Possible Solution: A Proactive Approach for Northampton Baby Boomers?

If you’re a Northampton baby boomer feeling stuck in this situation, it may be time to take a different approach. Rather than waiting for the perfect home to come onto the market, consider these steps:

1. Register Your Interest with Northampton Estate Agents: Share your requirements with local property professionals/estate agents who understand these challenges. As a proactive Northampton agent, we specialise in working with Northampton homeowners like you, keeping an eye on properties that may never publicly come onto the market and offering a personal touch that online searches can’t provide.

2. Plan Your Move Early: Securing a buyer for your current home doesn’t mean you need to move immediately. We could find you a buyer who’s willing to wait while you search for the right Northampton property so you can ease the pressure and gain flexibility.

3. Explore Creative Housing Options: Sometimes, the perfect home isn't a new one but an existing property that can be adapted to your needs. Extensions, modifications, or even shared living arrangements with family members might open new possibilities. Again, we know Northampton architects who could 'think outside the box' for a solution that meets your future living requirements.

 

Why Act Now?

The demand for accessible Northampton homes will only increase as the remaining baby boomers (and even some Gen X) reach retirement age. At the same time, competition from younger Northampton buyers who see the benefits of step-free single-storey living is growing. As time goes by, things will only get worse.

 

Here’s How We Can Help the Baby Boomers of Northampton

Over the years, we’ve worked closely with local Northampton homeowners to navigate these challenges. We understand the emotional and practical hurdles in downsizing or relocating later in life. Our goal is simple: to make the process as seamless as possible by connecting you with properties that fit your needs and ensuring your current home is sold to someone ready to wait for your next move.

Let's discuss whether you've been waiting for the right Northampton property but need help. Whether it's identifying off-market opportunities or helping you understand your options, we are here to support you every step of the way.

After all, the next chapter of your life deserves the right home - and sometimes, finding it requires thinking beyond the traditional property market. 

Let me know your thoughts in the comments.

 

Discovering Northampton: Part 14

 

The map above illustrates the average change in rental values across different areas of Northampton over the last five years. It highlights a clear trend of rising rental demand and prices, underscoring the shifting dynamics in Northampton’s property market and shows varied changes, providing landlords with an insight into their specific neighbourhood's performance.

Understanding these trends is crucial for landlords to ensure they are maximising their property's rental potential. The last five years have seen unprecedented challenges and opportunities in the rental market, and staying informed can make all the difference in maintaining or increasing returns on your investment.

If you’re a landlord wondering whether your property's rental level reflects the current market, we’d be delighted to assist. As part of our commitment to supporting Northampton’s property community, we offer a complimentary, no-obligation rental assessment. Whether you work with another agent or self-manage, we can provide a detailed insight into your property’s performance in today’s market. 

Reach out to us to ensure you’re not leaving money on the table in this rapidly evolving market. Let us help you stay ahead.

Average 5 year fixed rate mortgages in the UK

 

While there has been a noticeable rise in mortgage rates over the past couple of years, it’s worth highlighting that today’s rates are still significantly below the peaks we witnessed in the early 2000s and during the financial crisis. This perspective is essential for homeowners and buyers in Northampton to consider.

For local property buyers and sellers, these shifts in mortgage rates have a direct impact. Higher rates can tighten affordability for buyers, while sellers may see some softening in demand. However, compared to historic highs, today's rates remain competitive, and well-prepared buyers can still secure favourable deals with the right guidance.

If you’re thinking about how these mortgage rate trends might affect your next move in Northampton’s property market, I’d be delighted to have a conversation. Whether you’re buying, selling, or just keeping an eye on the market, let’s discuss how to make the most of the current conditions.

Feel free to give me a call on 01604 626 626 – I’m here to help navigate you through the changing landscape of the Northampton property market.

UK Property Market Weekly Update - week ending Sunday 1st December 2024 (week 48)

 

Listings (New properties coming on to the market)  - 24.6 UK listings this week (week 48), an expected drop of 2.6k from last week. 8.4% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 22.8k UK homes sold stc this week (Week 48), 4% lower than last week.  20% higher than the same standalone week (week 48) in 2023. Also, 8.8% higher than 2017/18/19 YTD levels & 15.2% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock last month. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - For the week 48, Sale Fall Thrus (as a % of Gross sales Agreed) decreased 23.8%). The 7 year Long Term weekly Average is 24.8% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022.

· Net Sales - 17.4k this week (average for last 4 weeks 17.6k). 20% higher than the same week 48 in 2023, 66% higher than the same week 48 in 2022 & still 17.4% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,438,852 UK homes that left UK Estate Agents books since the 1st Jan 2024, 772,292 of them (53.67%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 666,560 (46.33%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

 

If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

 

Northampton House Sales Up 23.5% on 2023 – Yet Challenges Still Remain

 

The number of agreed UK property sales until Saturday, 22^nd November 2024, is 18% higher than a year ago.

Breaking those stats down even further, as of 22nd November 2024, 1,009,340 UK homes had been sold subject to contract (STC), an 18% increase from the 855,083 homes sold STC in the same period of 2023. The average UK selling price has risen significantly, reaching £362,017 in 2024, compared to £326,125 in 2023 (a rise of 11%).

That doesn't mean UK house prices have risen 11%; more higher-valued properties have sold in 2024 than in 2023. The £ per square foot is a better judge of house price changes. The pound per square foot has risen only by 2.7% over the last year, climbing from £331 to £340 (which is in line with the major house price indicators).

Every UK region saw an increase in the number of properties selling (STC) in 2024 compared to 2023 in that January to November window:

 

• East Anglia: Up 22.2% (highest growth in the UK)
• East Midlands: Up 21.5%
• South East: Up 19.6%
• North West: Up 18.5%
• London: Up 18.3%
• West Midlands: Up 18.2%
• Yorkshire & Humber: Up 17.6%
• North East: Up 15.7%
• South West: Up 15.6%
• Wales: Up 14.6%
• Scotland: Up 12.9%
• Northern Ireland: Up 12%

 

Whilst we have had increased properties sold STC, the supply of UK properties on the market is very similar to last year, (643,327 for sale in November 2024 versus 630,307 for sale in November 2023).

 

Buyers Have the Advantage, but Challenges Remain

The current market presents opportunities for Northampton home buyers but also lingering challenges. While mortgage rates are improving, they are still higher than many prefer. However, affordability is reasonable, with some banks and building societies offering rates below 4% for those with larger deposits.

Buyers today have more choice than a few years ago, and in some parts of Northampton, properties are spending longer on the market. This allows for more time to consider options and even negotiate favourable terms. That said, competition still exists for highly desirable Northampton homes, and properties in prime locations or with unique features may still attract multiple offers.

Securing a mortgage agreement, in principle, is vital to give any Northampton buyers an edge in these competitive scenarios. Having that mortgage agreement in place not only streamlines the property buying process, but also makes a strong impression on sellers, particularly in situations where speed is of the essence.

 

Northampton Sellers Must Focus on Pricing and Presentation

On the other hand, sellers face a market where realism is key.

As of 22nd November 2024, 5,154 Northampton homes had been sold STC, a 23.5% increase from the 4,172 homes sold STC in the same period of 2023. The average Northampton selling price has fallen very slightly to £318,727 in 2024, compared to £321,073 in 2023 (a drop of 0.7%).

The £ per square foot on the homes sold STC for Northampton has been £301 per square foot in 2024, compared to £299 per square foot in 2023.

In 2023, 50.40% of Northampton homes that came to market were successfully sold (completed and exchanged). In 2024, that figure has risen to 52.53%. Even though the saleability has slightly increased, still only around 1 in 2 Northampton homes are selling, emphasising the need for careful pricing strategies. (Northampton NN1-NN7 – 1^st Jan to Nov 22^nd).

National figures showed that 52.96% of properties were sold (exchanged and completed) in 2023, only slightly improving to 53.62% in 2024.

If you think about it, you have just over one in two chances of selling if you put your home on the market; therefore, accurate pricing is more important than ever, but it isn’t the only factor. Homes that stand out in today’s market often do so because of exceptional marketing. For sellers looking to maximise interest and achieve a strong price, presenting their property in the best possible light is a non-negotiable step.

 

The Local Perspective: Northampton’s Unique Market Dynamics

Northampton’s property market has always had its quirks, and 2024 is no exception. Different postcode areas are experiencing varying levels of activity. In some areas of the town (and villages), homes are selling quickly, while in others, buyers have more room to negotiate, whether on price, fixtures, or even completion dates.

This means that flexibility can be an asset for buyers. Expanding your search radius or considering properties slightly outside your initial criteria could reveal opportunities that others have overlooked. For sellers, understanding these local variations is critical to setting the right price and crafting an effective marketing plan.

 

A Balanced Perspective: The Seller-Buyer Dynamic

It’s worth remembering that over four out of five sellers are also buyers. This dual role often means that what might be perceived as a loss on one side of the transaction can be recouped on the other. A slightly lower sale price on your current property may open the door to negotiating a better deal on your next purchase.

 

External Factors Shaping the Northampton Market

No property market operates in isolation, and Northampton is no exception. National and global trends will inevitably influence it.

That said, Northampton's property market has shown resilience in the past, which is likely to continue. While challenges remain, stabilising mortgage rates and a steady economy offer hope for a more active market in the coming months.

 

Final Thoughts

As Northampton's property market moves into 2025, success will hinge on understanding the current dynamics and being prepared to adapt. For buyers, this means having your finances in order and being ready to act quickly when the right property comes along. For sellers, setting a realistic asking price for your Northampton home ensures your property is effectively marketed from day one.

The journey requires a thoughtful approach, whether buying, selling or keeping an eye on the market. There are both opportunities and challenges ahead - but with the right strategy, the path forward is clear.

What’s your perspective on Northampton’s property market? Have you noticed similar trends, or do you see things differently?

Two bedroom properties - why are they so popular?

 

Two-bedroom homes remain a popular choice, especially in areas like Northampton, where they account for a notable 39% of all properties. Nationally,  27.1% of homes across have two bedrooms, representing a total of 6.71 million properties. The appeal of two-bedroom homes lies in their versatility and affordability. For first-time buyers or small families, they offer the perfect balance of space without the significant cost associated with larger properties.

In Northampton, as elsewhere, this property type accommodates a range of needs—whether for young professionals looking for an affordable step onto the property ladder, families needing an additional room for a child or guest, or even downsizers who no longer require extensive space. 

The enduring popularity of two-bedroom homes speaks to their adaptability within the property market, a trend reflected both locally and nationally. As a Northampton estate agent, I see first-hand how these homes attract a diverse array of buyers, all drawn to the perfect blend of space, cost-efficiency, and flexibility they offer.

To find out the value of your home in Northampton, please do not hesitate to give me a call on 01604 626 626 for no obligation free market appraisal.

UK Property Market Weekly Update - week ending Sunday 24h November 2024 (week 47)

 

· Listings (New properties coming on to the market)  - 27.2 UK listings this week (week 47), an expected slight drop of 1.8k from last week. 8.3% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 23.8k UK homes sold stc this week (Week 47), 1.2% lower than last week.  21% higher than the same standalone week (week 47) in 2023. Also, 8.6% higher than 2017/18/19 YTD levels & 15.1% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - Agents lost 5.8% of their sales pipeline for the month of October (up from 5.6% in Sept ‘ 24). For the week 47, Sale Fall Thrus (as a % of Gross sales Agreed) decreased 25%). The 7 year Long Term weekly Average is 24.8% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022. 

· Net Sales - 17.8k this week (average for last 4 weeks 17.7k). 20% higher than the same week 47 in 2023, 56% higher than the same week 47 in 2022 & still 17.4% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,387,069 UK homes that left UK Estate Agents books since the 1st Jan 2024, 743,269 of them (53.59%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 643,800 (46.41%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

 If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

What is November's Average £ per Square foot?

 

Welcome back to news of Northampton’s property market, where each week I bring you different local property market stats and trends. This week I am back again with the November's £/sq.ft statistics.

The average property presently in Northampton is on the market for £256 per square foot, a figure representing the current heartbeat of Northampton’s property market.

Last month it was £255 per square foot.

That doesn’t mean Northampton house prices have changed by that percentage, just the mix of properties for sale, thus changing the £/sq.ft figure. This snapshot is crucial for Northampton homeowners and landlords; it's not just a number but a story of our community's property market.

Each month, I will revisit that figure and use it to gauge the health of our local property market.

Are you keen to know how your home aligns with these trends?

At Belvoir Northampton, I invite you to a no obligation chat about your property's potential value – no strings attached.

Stay informed, stay ahead, and stay connected with Northampton’s property market beat.

Northampton’s Ageing Population Turning to Rentals: What it Means for Landlords

 

Recent figures from the Office for National Statistics reveal that across the UK, 486,795 households are occupied by individuals aged 65 (and over) who live in a private rental sector home. This represents 6.71% of all OAP’s that are now renting privately. 

Ten years ago, only 267,704 households were occupied by individuals aged 65 (and over) that lived in private rental sector home, (which represented just 4.39% of all older adults).

 

52.8% increase in OAP’s privately renting

 

This data raises two crucial questions: How many of these older renters have been tenants their entire lives, and how many have transitioned from homeownership to renting in later years?

In Northampton, as in other parts of the country, downsizing and renting during retirement can be a practical decision for older generations, enabling them to access the equity tied up in their homes to enhance their financial security. But why are more retirees choosing to rent, and what opportunities does this present for Northampton’s landlords?

 

Why Are Retirees Renting?

A survey by the Prudential a few years ago shed light on this trend. Nearly 60% of older renters stated they have always rented, reflecting a lifelong position in the private rental market. Around 20% have sold their homes to address debt challenges, and another 10% have deliberately chosen to sell and rent, using the proceeds to fund their retirement. The remaining renters cite various personal reasons for their choice.

Financial stability in retirement is increasingly important. Men in Northampton, upon reaching 65, have an average life expectancy of 18.6 years, while women can expect to live an additional 21.1 years. Interesting when compared to the national averages of 18.1 years for men and 20.6 years for women.

However, longer life expectancies come with the challenge of sustaining finances over an extended period, particularly as inflation, rising living costs, and low interest rates erode retirement savings.

 

The Rental Landscape in Northampton (and West Northampton as a whole)

26.7% of people who live in West Northampton are 65 years old (or older). A significant majority - 73.6% - own their homes outright. 7.3% own their home with a mortgage. Social housing accounts for 13.1% of these households. Yet, a notable 6.1% of older households - 2,790 homes - are privately rented.

This figure, while small, is on the rise. Anecdotal evidence from estate agents and local property professionals indicates that more retirees in Northampton are choosing to sell larger homes and downsize to rented accommodation. This decision often reflects a desire for simplicity and financial flexibility. Selling a family home can free up substantial equity, which older residents might use to assist their grandchildren in purchasing their first homes, secure better returns through investments, or enjoy a more comfortable retirement.

Renting also offers predictability. With a fixed monthly expenditure that typically includes property maintenance and potentially even services like gardening, retirees can budget with confidence. This arrangement removes the financial and logistical burdens of homeownership, such as unexpected repair costs, allowing for a more carefree retirement. Renting also offers flexibility, enabling older tenants to relocate with ease if their circumstances change, such as moving into assisted living or care facilities.

 

Opportunities for Northampton’s Landlords

This shift presents a unique opportunity for Northampton’s buy-to-let investors. Older tenants often seek properties that are low-maintenance and designed to suit their needs. Semi-detached bungalows, particularly those located near essential amenities such as bus routes, GP surgeries, and shops, are in high demand. These homes are often preferred for their accessibility and practicality.

For landlords, catering to this demographic can yield excellent returns. Retirees typically value stability, making them reliable, long-term tenants. Furthermore, if a property meets their needs and provides additional conveniences like included maintenance services, they are often willing to pay a premium rent for the right home.

 

The Bigger Picture for Northampton Landlords

As the population ages, the demand for rental properties suitable for older tenants is likely to grow as the Centre for Economics and Business Research (CEBR) stated in the report this summer that they expected the number of OAPs privately renting to double in the next decade. This trend presents both challenges and opportunities for landlords in Northampton. By understanding the needs of this demographic and tailoring their portfolios accordingly, landlords can not only secure steady returns but also play a role in supporting the housing needs of an ageing community.

For the private rental sector, this demographic shift highlights the importance of creating housing solutions that balance profitability with social responsibility. As leaders in the Northampton property market, we must champion approaches that meet these emerging needs while promoting long-term sustainability in the rental sector.

As always, I am keen to hear your thoughts - what opportunities do you see in this evolving market?

 

 

 

UK Property Market Sees Positive Growth in 2024 – But Challenges Remain

 

The UK property market is showing signs of strength, with a remarkable increase in homes marked as ‘sold subject to contract’ (SSTC) between January and November 2024 compared to the same period in 2023. 

This upward trend in every region across the country, reflects renewed confidence among buyers and sellers.

 

Here’s the regional breakdown of growth:

 

• East Anglia: Up 22.2% (highest growth in the UK)
• East Midlands: Up 21.5%
• South East: Up 19.6%
• North West: Up 18.5%
• London: Up 18.3%
• West Midlands: Up 18.2%
• Yorkshire & Humber: Up 17.6%
• North East: Up 15.7%
• South West: Up 15.6%
• Wales: Up 14.6%
• Scotland: Up 12.9%
• Northern Ireland: Up 12%

 

This growth is an encouraging sign, particularly after the challenges of the past few years. However, while more homes are being marked as sold, yet it’s crucial to remember that only 53% of properties listed on the market in last 18 months has ultimately resulted in a successful sale and move.

 

What This Means for Home Sellers in Northampton ?

The data shows that while the market is improving, choosing the right estate agent remains essential to achieve a successful sale. As some Northampton homeowners prepare to make their move in 2025, working with an agent that understands the local and national market and focuses on securing successful outcomes is key.

Feel free to reach out for a no-obligation consultation to discuss how we can help you navigate the current Northampton property market and maximise your property’s potential!

 

 

UK Property Market Weekly Update - Week ending Sunday 17th November 2024 (week 46)

 

· Listings (New properties coming on to the market)  - 29k UK listings this week (week 46). YTD 2024, listings are 8% higher compared to 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 24.2k UK homes sold stc this week (Week 46), slightly more than last week.  19.2% higher than the same standalone week (week 46) in 2023. Also, 8.5% higher than 2017/18/19 YTD levels & 14.9% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs -  For the week 46, Sale Fall Thrus (as a % of Gross sales Agreed) dropped significantly to 25% (down from 28.8% last week). The 7 year Long Term weekly Average is 24.2% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022. Agents lost 5.8% of their sales pipeline in Oct’24 (up from 5.6% in Sept ‘ 24). 

· Net Sales - 18.1k this week (17k last week). 18.2% higher than the same week 46 in 2023, 76% higher than the same week 46 in 2022 & still 17.3% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,358,587 UK homes that left UK Estate Agents books since the 1st Jan 2024, 728,138 of them (53.6%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 630,449 (46.4%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

 

If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

INSIGHT INTO UK Households 1996 - 2023

 

The composition of UK households has evolved significantly between 1996 and 2023, with some subtle yet meaningful proportional shifts that reflect changing demographics and societal trends.

For couples with children, their share of total households has dropped from 31.1% in 1996 to 27.9% in 2023, a proportional decrease of approximately 10.3%. This reflects lifestyle changes, including delayed parenthood and smaller family sizes.

In contrast, one-person households have risen from 27.8% to 29.6%, a proportional increase of 6.5%. This growth likely reflects an ageing population, as well as more individuals choosing to live alone due to greater financial independence or personal preference.

Couples without children have seen a smaller proportional increase, rising from 27.4% to 28.1%, an increase of just 2.6%. This stability underlines the continuing trend of dual-income households and couples choosing alternative priorities to raising children. 

Lone-parent households, meanwhile, have grown from 9.9% to 10.6%, a proportional rise of 7.1%.

Interestingly, households with two or more unrelated adults have seen a proportional decline of 6.5%, decreasing from 3.1% to 2.9%, potentially reflecting challenges such as rising housing costs or changing rental practices.

Multi-family households, although still rare, have increased from 0.7% to 1.0%, a proportional jump of 42.9%, likely driven by economic pressures and the resurgence of multigenerational living. These proportional changes, though subtle, provide insights into the UK’s shifting household dynamics. 

For towns like Northampton, they highlight the importance of tailored housing policies and estate agency services that respond to evolving needs, including single-person housing, multigenerational homes, and affordability concerns.

This information is important for lots of people; including national and local government for the provision of services and future housing, buy-to-let investors knowing what sort of demand there will be different types of properties in the future and finally any homeowners wanting to know how demographic changes will affect the property market and house prices in the long term.

These are my thoughts. Please share with in the comments your thoughts on this.